Bidding on track for Philippines largest railway

At least 4 groups seen to vie for P229 billion concession

MANILA, Philippines —  The Department of Transportation (DOTr) expects at least four groups to compete for the P229-billion concession to run the country’s largest railway, signaling that investor confidence is unwavering despite the corruption scandals.

The DOTr will issue the bidding documents for the public-private partnership (PPP) contract for the operation and maintenance of the North-South Commuter Railway (NSCR) by the last week of October at the earliest.

Acting Transportation Secretary Giovanni Lopez said he has consulted with transaction adviser Asian Development Bank (ADB) in finalizing the schedule.

Lopez said the DOTr is expecting at least four consortiums to bid for the concession. He noted that these groups are mostly made up of Filipino and foreign investors, following the DOTr’s efforts to market the project in roadshows in Singapore, Paris, Manila and Tokyo.

However, he said the number can still change depending on investor appetite. Although the government is riddled with corruption issues, Lopez is optimistic that the DOTr can still secure enough offers to make the bidding competitive.

Moreover, Lopez said the DOTr is far from suffering the same fate as the Department of Public Works and Highways, which funds most of its projects locally from the national budget.

The DOTr undertakes big-ticket projects, such as the NSCR, through loans from partners like the ADB. Lenders observe procurement controls to protect projects from manipulative practices.

“I always say that DOTr projects are quite unique and peculiar in itself because all the big-ticket projects are funded by ODA (official development assistance),” Lopez said.

“The internal controls are different, the process is different, the checks and balances are different. So I can say, it is 100 percent free of corruption,” he added.

As such, Lopez believes the DOTr can keep its reputation free from funding anomalies and sees no reason for investor appetite to decline in its big-ticket and PPP projects.

The NSCR, costing P873.6 billion and co-financed by Japan, will span 147 kilometers across 35 stations between the Clark International Airport and Calamba, Laguna.

It is expected to ferry 800,000 passengers daily once finished.

The future operator of the NSCR will manage its trains, stations and depot, including its interline with the Metro Manila Subway Project.