Transport Sector PPP: Our

Challenge
For a Successful Partnership
Secretary Jose P. de Jesus
Department of Transportation and Communications
November 18-19, 2010
The Manila Marriott Hotel, Pasay City, Philippines
 DOTC’s Key Reform
National Transport Policy and Plan

Separation of Operation and

Regulation

PPP Project implementation,

Operation and Maintenance
 DOTC’s PPP Program
PPP Goal Increase Possibility Private–Public Sector
Frontiers Participation

• Merge private capital • Budgetary Resources • Private Sector

and efficiency for • Need to improve contribution:
developing projects efficiency in service • Financial
with DOTC’s aim to delivery investments
improve transport • Better management
service delivery to the practices
Public
• Efficiency in
operations and
service delivery
• Public Sector
contribution limited
to:
• Viability Gap Funding
• Regulatory Risk
Guarantee
 DOTC’s Short List Of Projects
Advanced
4 Rail and 4 Stage of
Air Right of Way

Completed Positive
FS and Viability
Engineering indicators
Study
Project Title MRT/LRT Expansion Program: Privatization of LRT 1
Operation and Maintenance
Description
• Privatization of the O&M for a period of 3-5 years, with
the option to integrate MRT3 O&M, prior to privatization,
through a concession. (including repair/rehabilitation of
rolling stocks)

Implementation: 2011-2014

Average Daily Traffic: 480,000 passengers

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

PPP Structure Government Private

Scope Grant Usufruct Perform O&M
Project Cost US$ 171.11 million Market determined
Project Title MRT/LRT Expansion Program: Privatization of MRT 3
Operation and Maintenance
Description
• Privatization of the O&M for a period of 3-5 years, with
the option to integrate LRT1 O&M, prior to
privatization, through a concession (including
repair/rehabilitation of rolling stocks)

Implementation: 2011-2014

Average Daily Traffic: 400,000 passengers

Status:
• Contract packaging and preparation of bid documents
on-going
• Procurement process to start by 2nd Quarter of 2011

PPP Structure Government Private

Scope Grant Usufruct Perform O and M
Project Cost US$ 140.00 million Market determined
Project Title MRT/LRT Expansion Program: LRT 1 South Extension
and Privatization through concession
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
• Additional rolling stocks to meet growth in demand
• Systems enhancement
Implementation: 2011-2015
EIRR: 28.0%
FIRR: 12.0%
Average Daily Traffic: 745,000 passengers (2015)
Status:
• Contract packaging and preparation of bid documents
on-going
• Procurement process to start by 2011
PPP Structure Government Private
Scope Civil Works and Electro-mech Rolling Stock and O&M
Project Cost US$ 700 million US$ 800 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%
Average Daily Traffic: 380,000 passengers
(2015)
Status:
• FS completed by March 2010
• PPP study configuration to be completed by the
2nd quarter of 2011
• Procurement process to start by 2011
PPP Structure Government Private
Scope Civil Works and Electro-mech Rolling Stock and O&M
Project Cost US$ 120 million US$ 100.00 million
Project Title New Bohol 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: PPP Study being completed

Average Annual Traffic: 1,700,000

Status:
• Updating of FS to reconfigure the project into PPP structure
• Preparation of bid documents on going
• Tendering by 2011
• PPP Implementation strategy : airside facilities : gov’t. funded;
landside facilities : private funded

PPP Structure Government Private

Scope Airside Landside
Project Cost US$70million US$50 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: PPP Study being completed

Average Annual Traffic: 1,900,000

Status:
• Updating of FS to reconfigure the project into PPP structure
• Preparation of bid documents on going
• Tendering by 2011
• PPP Implementation Strategy: airside facilities-gov’t funded ;
landside facilities-private funded

PPP Structure Government Private

Scope Airside Landside
Project Cost US$29 million US$68 million
Project Title New Legaspi Airport Development
Description
• Review and update of the detailed engineering design
• 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: PPP Study being completed
Average Annual Passengers: 890,000
Status:
• Updating of FS to reconfigure the project into PPP structure
• Preparation of bid documents on-going
• Tendering by 2011
• Implementation Strategy : airside facilities - gov’t funded;
landside facilities - private funded

PPP Structure Government Private

Scope Airside Landside
Project Cost US$58 million US$13million
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
EIRR: 68%
FIRR: PPP implementation Study being completed
Average Annual Passengers: 2,600,000
Status:
• Preparation of business case and tender documents for
the privatization of the airport operation on going
• Tendering by 2011

PPP Structure Government Private

Scope Grant Usufruct O and M
Project Cost US$28million US$5 million
THANK YOU