In line with the Marcos administration’s initiative to spice up public-private partnerships (PPP), the Department of Transportation (DOTr) is meaning to privatize the operations and upkeep (O&M) of two big-ticket railway initiatives.
At a ceremony in Mandaluyong City on Thursday, the DOTr and Manila-based multilateral lender Asian Development Bank (ADB) signed transaction service advisory agreements for the eventual turnover of the Metro Manila Subway (MMSP) and North-South Commuter Railway (NSCR) initiatives’ O&M to personal operators beneath a aggressive choice course of.
Both events additionally signed an analogous deal for the modernization and capability enlargement of the Ninoy Aquino International Airport (NAIA), which the federal government additionally intends to denationalise.
“The three transaction advisory agreements we sign today will allow us to fast-track the completion of our ongoing big-ticket rail projects and the much-needed improvement in our country’s main airport,” Transportation Secretary Jaime Bautista mentioned in his remarks in the course of the signing ceremony.
Under the agreements, the ADB will present transaction advisory to help the DOTr within the collection of certified and skilled non-public sector operators for MMSP and NSCR.
“By extending ADB’S advisory services on the Metro Manila Subway project and North-South Commuter Railway, we can fine-tune the selection process for the most qualified and experienced private sector operators of these rail projects once completed,” Bautista mentioned.
The scope of the ADB’s advisory help within the collection of non-public sector operators for each MMSP and NSCR consists of the next:
- Prepare and conduct market consultations
- Detailed technical due diligence
- Detailed business and authorized due diligence
- Financial due diligence
- Tender paperwork preparation
- Support for inner approval
- Assist in dialogue with key stakeholders, as wanted
- Tender help
- Commercial shut help
- Support for monetary shut
- Capacity constructing and challenge administration help
The ADB’s advisory help, by way of its Office of Public-Private Partnership, for the collection of MMSP and NSCR non-public sector operators will final till December 2024.
The P488.5-billion MMSP is a 33.1-kilometer underground metro rail system that can traverse Metro Manila from Valenzuela City to Parañaque City with a connection to NAIA Terminal 3 and can interoperate with NSCR from Bicutan to Calamba.
The challenge is financed by the Japan International Cooperation Agency (JICA).
The MMSP could have 17 stations alongside its alignment and a 30.37 hectare depot situated in Valenzuela City.
Meanwhile, the P873.62-billion NSCR challenge is an roughly 147-kilometer commuter railway that runs from Clark, Pampanga to Calamba, Laguna.
It could have 35 stations alongside its alignment and three depots situated in Clark, Valenzuela, and Calamba.
Construction of the NSCR is at present underway and will probably be accomplished in phases starting in 2026 with full turnover and completion by 2029.
NAIA modernization
The ADB’s advisory help for the NAIA’s enlargement and modernization consists of the next:
- Detailed technical, monetary, business, and authorized due diligence
- Conduct of up to date site visitors examine
- Conduct of Market Sounding
- Support in preparation of submission for NEDA Board Approval
- Preparation of bidding and tender paperwork
- Preparation of MPSS (Minimum Performance Specifications and Standards) and KPIs (Key Performance Indicators)
- Support in bidding / tender course of
- Preparation and Finalization of Concession Agreement
- Support in signing of Concession Agreement
- Support for Financial Close
- Capacity Building
- Development of Contract Implementation and Monitoring Capabilities
The time period beneath the advisory service settlement shall proceed for 36 months or till the date of signing by the successful bidder for the privatization of the airport’s O&M.
The DOTr chief earlier mentioned the Transportation division is working with the ADB on the preparation of the phrases of reference for NAIA’s privatization.
“We have to get creative after realizing our projects face limited fiscal space allocation. Thus, our decision to turn to our ever-supportive private sector and financial institution partners,” Bautista mentioned.
The Transportation chief reiterated that solely the operations and upkeep of railway initiatives and the NAIA will probably be privatized and that the belongings will stay with the federal government.
“Ownership will always remain with the government,” he mentioned.
Bautista mentioned the ADB will assist the DOTr discover the “right group” that can deal with the O&M of the big-ticket initiatives.—AOL, GMA Integrated News
Source: www.gmanetwork.com
