Investment Opportunities in the

Transport Sector

Undersecretary Ruben S. Reinoso, Jr.

Department of Transportation and Communications
8 February 2011, Makati City
Development Issues
Transport • Low transport infrastructure investment
Development • Poor quality of facilities and services
and Asset • Inefficient transport pricing
Preservation • High transport cost

Institutional • Overlapping agency functions

Linkages • Conflict of interest situation in agency operation
and regulation
• Uncoordinated plans and programs
• Low participation of private sector
DOTC Mandate and Strategies
Mandate Apex agency for transportation sector policy
formulation and plan integration
Development Safe, secured, seamless and sustainable
Vision transportation system
Strategic • Integrated national network and seamless
Outlook operation
• World class gateways
• Decentralization and local/regional growth
opportunities
• Environmentally sustainable transport
• Low carbon development and climate-proof
facilities
• Compliance to international safety and security
standards and best practices
DOTC’s PPP Program
PPP Goal Merge private capital and efficiency in
developing and managing transport
infrastructure and services

Increase Expanded resource base

Possibility Need to improve efficiency in service delivery
Frontiers
Private Sector contribution:
Private –Public - Financial investments
Sector - Better management practices
Participation - Efficiency in operations and service delivery
Public Sector contribution limited to:
- Financial viability gap support
- Providing fair and transparent regulatory
environment
DOTC’s Priority List of Projects
•4 Railway and 4 Airport projects
•Ready feasibility studies and preliminary
engineering designs
•Advanced stage of right-of-way acquisition
•Positive economic and financial viability
indicators
•₧5 billion fund support in CY2011
Project Title MRT/LRT Expansion Program: Privatization of LRT 1
Operation and Maintenance
Description
• Integration of LRT Line 1 operation and
maintenance to a private sector service provider
during the interim period of 3-4 years
• After this O&M interim period, the LRT Line 1 South
Extension Project contractor is expected to assume
overall responsibility for the integrated LRT Line 1
and MRT Line 3 systems

Implementation: 2011-2014

Traffic: 490,000 passengers per day (2010)

Status:
• Contract packaging, preparation of bid documents
of projects for PPP to be undertaken by DOTC
consultant
• Bidding for Interim O&M provider by June 2011
• Contract award by October of 2011

PPP Structure Government Private

Scope Grant Usufruct Perform O&M
Project Cost US$ 175 million
Project Title MRT/LRT Expansion Program: Privatization of MRT 3
Operation and Maintenance
Description
• Integration of LRT Line 1 operation and
maintenance to a private sector service provider
during the interim period of 3-4 years
• After this O&M interim period, the LRT Line 1 South
Extension Project contractor is expected to assume
overall responsibility for the integrated LRT Line 1
and MRT Line 3 systems

Implementation: 2011-2014

Traffic: 495,000 passengers per day (2010)

Status:
• Contract packaging, preparation of bid documents
of projects for PPP to be undertaken by DOTC
consultant
• Bidding for Interim O&M provider by June 2011
• Contract award by October 2011

PPP Structure Government Private

Scope MRT 3 buy-out and grant usufruct Perform O&M
Project Cost US$ 140 million
Project Title MRT/LRT Expansion Program: LRT 1 Cavite Extension
Description
• Construction of 11.7 km LRT extension
• Eight (8) stations with provision for 2 additional
stations
• Satellite depot for light maintenance at the southern
terminus
• Intermodal facilities at high demand stations
• Provision for additional rolling stocks to meet
additional load requirements once the LRT Line 1
and MRT3 are integrated

Implementation: 2011-2015
EIRR: 28.0%
FIRR: 12.0%

Traffic: Additional 350,000 passengers per day

Status:
• Contract packaging, preparation of bid documents
of projects for PPP to be undertaken by DOTC
Consultant
• Tender to commence by July 2011
• Contract award by March 2012

PPP Structure Government Private

Scope Civil Works and Electro-mechanical Rolling Stock and O&M
Project Cost US$ 960 million US$ 600 million
Project Title MRT/LRT Expansion Program: Line 2 East Extension Project
Description
• Construction of a 4-kilometer eastern extension
• Two (2) additional passenger stations
• The projected increase in passengers will
improve profitability of the line

Implementation: 2011-2014
EIRR: 17.6%
FIRR: 4.2%

Traffic: 200,000 passenger per day (2010)

Status:
• Pre-FS completed in March 2010
• Update FS and PPP structure preparation under
JICA assistance
• Tender to commence by November 2011
• Contract award by June 2012
PPP Structure Government Private
Scope Civil Works and Electro-mechanical Rolling Stock and O&M
Project Cost US$ 201 million US$ 50.00 million
Project Title Privatization of Laguindingan Airport Operation and Maintenance
Description
• Privatization of the airport operation and
maintenance
• O&M through concession covers the newly
constructed airport on a 393-hectare property
complete with facilities of international
standards

Implementation: 2011-2014

Traffic:

Status:
• Proposed transaction advisory services under
USTDA
• O&M tender to commence by June 2011
• Contract award by November 2011
PPP Structure Government Private
Scope ANF procurement and grant usufruct O and M
Project Cost US$33 million
Project Title New Bohol (Panglao) Airport Development
Description
• Construction of a new airport of international
standards in Panglao Island to replace the existing
Tagbilaran Airport
• Construction of a new 2,500m x 45m runway,
taxiway, apron and provision of air traffic control and
navigational equipment and landside facilities

Implementation: 2012-2014
EIRR: 23%
FIRR: 16%

Traffic: 600,000 per annum

Status:
• JICA to start airport PPP structuring work by mid-
December 2010
• Tender to commence by August 2011
• Contract award by January 2012

PPP Structure Government Private

Scope Airside facilities Landside facilities
Project Cost US$ 119 million US$ 32 million
Project Title Puerto Princesa Airport Development
Description
• Rehabilitation/ improvement of the existing airport to
meet international standards
• Construction of new landside facilities on the north
west side of the existing runway
• Construction of new apron and connecting taxiways,
upgrading of the existing 2.6-km runway and its
strip, and the provision of new navigational and
traffic control equipment

Implementation: 2011-2014
EIRR: 20%
FIRR: 14%

Traffic: 600,000 per annum

Status:
• Singapore SCE/Temasek to provide transaction
advisory services through PWC (Singapore)
Updated FS report and draft bid documents for
submission to DOTC by March 2011
• Tender to commence by August 2011
• Contract award by February 2012

PPP Structure Government Private

Scope Airside Landside
Project Cost US$ 68 million US$ 29 million
Project Title New Legaspi Airport Development
Description
• Construction of a new airport in Daraga, Albay
that will replace the existing Legaspi Airport
• Construction of new a 2,100m x 45m runway
and other airside and landside facilities

Implementation: 2011-2014
EIRR: 17%
FIRR: 12%

Traffic: 500,000 passengers per annum

Status:
• Singapore SCE/Temasek to provide transaction
advisory services through PWC (Singapore)
• Tender to commence by August 2011
• Contract award by February 2012

PPP Structure Government Private

Scope Airside Landside
Project Cost US$ 121 million US$ 32 million
THANK YOU