Pasig River Ferry Service Project

PASIG RIVER FERRY SERVICE PROJECT

A joint project of the Department of Transportation and Communications, Metropolitan Manila Development Authority, and the Pasig River Rehabilitation Commission

TERMS OF REFERENCE

1. BACKGROUND

The Pasig River Rehabilitation Commission (PRRC) is mandated to ensure that the Pasig River is rehabilitated to its historically pristine condition conducive to transport, recreation and tourism. Thus, the PRRC has completed the master plan for the rehabilitation of the Pasig River, to include easement regulations, integration and coordination of all programs pertaining to the Pasig River, industrial wastewater and sewerage control, and the relocation of riverbank settlers.

Seeing the Pasig River as an alternative transport corridor through the metropolis to decongest the traffic to and from the nearby towns and provinces, the Department of Transportation and Communications (DOTC), the Metropolitan Manila Development Authority (MMDA), and the PRRC combined their efforts to revive and develop the transport system utilizing the river and its tributaries, and to extend its operations to the Laguna de Ba-e and Manila Bay areas.

2. OBJECTIVES

2.1 To provide guidelines for the operation of a reliable, safe, secure, adequate, and efficient transport system on the Pasig River, Marikina River, Laguna de Ba-e and Manila Bay areas; 2.2 To complement the existing transport system in Metro-Manila by providing an alternative mode of transport to passengers from various points initially along the Pasig River, Marikina River and eventually into Laguna de Ba-e and Manila Bay; 2.3 To improve passenger and cargo mobility, and contribute to traffic reduction efforts in Metro-Manila and its neighboring provinces; 2.4 To enhance the image and status of the Pasig River as an important artery in Metro-Manila’s growing inter-modal transport system; and 2.5 To serve as a model of an efficient inland waterway transport system.

3. COVERAGE

3.1 SCOPE OF OPERATION

This TOR shall cover the operations of the transport system, which include but not limited to:

3.1.1 Pasig River; 3.1.2 Marikina River; 3.1.3 Laguna de Ba-e to Pasig River and vice-versa; and 3.1.4 Up to Manila Bay areas, in the future.

3.2 APPLICABILITY

The operation of the transport system shall be in accordance with all applicable policies, rules and regulations, and circulars of all concerned government agencies and instrumentalities. This Terms of Reference (TOR) shall apply to:

3.2.1 All persons, partnerships, corporations, firms, and entities engaged in, or intending to engage in:

a) The operation of a transport service initially along the Pasig River and Marikina River and eventually into Laguna de Ba-e and Manila Bay areas, involving the carriage of passengers and/or cargoes; and b) The operation of a ferry station/s initially along the Pasig River and Marikina River and eventually at Laguna de Ba-e and Manila Bay areas.

3.2.2 All ships’ officers and crew, passengers, and other persons using the Pasig River transport system.

4. DEFINITION OF TERMS

4.1 Ferry Station – shall refer to a landing facility for the docking and undocking of ships, to include the passenger terminals, equipment, commercial spaces, ticketing booths, and other facilities therein.

4.2 Ship – shall refer to any type of watercraft capable of conveying persons and/or cargoes.

4.3 Transport Service – shall refer to the operation of ships for the carriage of passengers and/or cargoes for commercial purposes.

4.3.1 Passenger Ferry Service – shall refer to a type of transport service that carries passengers to and from various points along the Pasig River and Marikina River, and into Laguna de Ba-e and Manila Bay areas.

a) Passenger Ferry Regular Service – shall refer to a passenger ferry service that calls on each ferry station at designated times and frequencies. b) Passenger Ferry Express Service - shall refer to a passenger ferry service that calls only on selected ferry stations at designated times and frequencies.

4.3.2 River Crossing Service – shall refer to the type of transport service, which has existing valid CPC’s that ferries passengers across two opposite points along the Pasig River.

4.3.3 Taxi Service – shall refer to the type of transport service that ferries passengers and/or cargoes to any point along the Pasig River and Marikina River and Laguna de Ba-e and Manila Bay areas on a contractual basis.

4.3.4 Tourist Service – shall refer to the type of transport service that ferries tourists for sightseeing and other tourism purposes along the Pasig River, Marikina River, Laguna de Ba-e, or Manila Bay areas.

4.4 Pasig River Transport System – shall refer to the integrated system of transport services and ferry stations in the Pasig River, Marikina River, and Laguna de Ba-e and Manila Bay areas.

4.5 Pasig River Transport System Operation Center – shall refer to the office tasked to oversee the operation of the Pasig River Transport System. 4.6 Project Team (or the Agencies) – shall refer to the inter-agency team composed of members from the DOTC, MMDA and PRRC tasked to revive and establish the Pasig River Ferry Service.

5. ROLES AND RESPONSIBILITIES OF TASKED AGENCIES

The DOTC, MMDA, and PRRC, shall be governed by their respective roles and responsibilities as embodied in the Memorandum of Agreement for the Establishment and Operation of the Pasig River Ferry Service, signed on 31 March 2005.

6. GUIDELINES ON TRANSPORT SERVICES

. Types of Transport Service

The Pasig River Transport System shall consist of the following transport services:

1.1.1 Passenger Ferry Service (Regular and Express) 1.1.2 Taxi Service 1.1.3 Tourist Service 1.1.4 River-Crossing Service

Note: For the initial phase of the project, only the Passenger Ferry Service (Regular and Express) shall be offered to interested operators. The Taxi Service shall be made open to interested applicants following the Maritime Industry Authority’s (MARINA) established rules and procedures for CPC application. The existing River Crossing Service shall be allowed to continue provided they have existing valid CPC’s issued by MARINA. Tourist Service shall be opened for operation as the demand arises or when a prospective operator expressed an interest to start.

2.2 Number and Tenure of Service of Operator

The operation of the Passenger Ferry Service (Regular and Express) shall be awarded to one (1) operator only, who shall be selected according to Section 6.3 of this TOR. The selected operator shall have the exclusive operation of the transport service for at least five (5) years.

2.3 Selection of Operator

6.3.1 Committees

a) Approving Committee (AC) – The Project Team for the Pasig River Ferry Service Project shall act as the approving committee in the Selection Process and shall endorse prospective operators to MARINA for the issuance of a CPC.

b) Evaluating Committee (EC) - The Inter-Agency Technical Working Group (IA-TWG) for the Pasig River Ferry Service Project shall act as the Evaluating Committee and shall be responsible for the evaluation and verification of documents submitted by prospective operators. The EC shall undertake eligibility screening and evaluation of proposals and shall submit the results to the AC for approval.

6.3.2 Eligibility Phase – All prospective operators for the Passenger Ferry Service being offered shall be required to undergo Eligibility Screening to determine eligibility to join the Selection Process based on compliance with eligibility requirements.

The EC, based on eligibility requirements submitted, shall determine if each prospective operator is eligible to participate in the selection process by examining the completeness and validity of each prospective operator’s eligibility requirements or statements against a checklist of requirements, using a non-discretionary “pass/fail” criteria, and shall be determined as either “eligible” or “ineligible”. Eligibility Documents required to be submitted:

Legal Documents: a) Letter of Application, to include Authorization for the EC and AC to verify documents, and a duly notarized waiver that applicant will not complain in the event applicant is not selected b) General Information of the Company c) DTI / SEC Registration d) Mayor’s Business Permit e) VAT Registration f) Tax Identification Number g) Accreditation from MARINA as a Shipping Company/Ferry Operator) h) Joint Venture/Consortium Agreement (if applicable)

Financial Documents: a) List of current financial obligations b) If existing shipping companies, Audited Financial Statement for the last three (3) years stamped- received by BIR/SEC, (in case of joint venture/consortium, each partner shall submit), if a new company, projected Income Statement and Balance Sheet c) BIR Certification of VAT Remittance, (in case of joint venture/ consortium, each partner shall submit)

Corporate Structure: a) Organizational Chart of the Company b) Key Personnel of the Company with respective Resumes and Records of Experience

Business Experience Documents: Summary of Completed, On-going and Awarded Contracts for the past three years, (in case of joint venture/consortium, each partner shall submit).

The EC shall open the Envelopes containing the Eligibility Documents, one at a time, and read out and record the following:

a) Name of Prospective Operator; and b) The presence or absence of each document comprising the Eligibility Documents vis-à-vis a checklist of required documents.

The detailed instructions for the eligibility phase are found in Section 3 of this Selection Documents – Instruction to Proponents.

6.3.3 Proposal Evaluation Phase – Prospective operators who passed the Eligibility Screening shall thereafter undergo the Proposal Evaluation Phase consisting of the following:

a) Submission and Opening of Proposals – Eligible prospective operators shall be required to submit the following:

1) Technical Proposal (First Envelope), which shall include: i. Authority of Signing Official ii. Proposal Security in the amount of PHP500,000.00 iii. Ship Construction/Acquisition Schedule, including Boat Builder’s License pursuant to MARINA MC95, and Letter of Approval on the Acquisition of Boat through Local Construction pursuant to MARINA MC104 (for new construction). For existing ships, MARINA Certification that the ship was inspected and was found to be safe and suitable for deployment along the Pasig River. iv. Proposed Project Organizational Chart v. List of Prospective Operator's Project Personnel with Qualification and Experience Data vi. Commitment from a Reputable Financing Institution (Credit Line) vii. Safety and Health Program viii. Certificate of Compliance with Labor Laws ix. Affidavit of Compliance with the Disclosure Provision x. Details of Operation which shall include:

a. Vessel

Vessel plans/design which shall be pre-approved by MARINA, to include compliance with the applicable provisions of MC 65, 65A, and 89. Vessels must also comply with the following operating standards:

a.1 Hull Configuration Catamaran (Twin-hulled) a.2 Hull Material FRP/Steel/Aluminum a.3 Propulsion/Drive System Brand New, Inboard Diesel, Lower RPM, Keel Cooling, Propeller Type (Twin Screw, Commercial, Medium Continuous and higher duty rating; and IMO-compliant emission a.4 Average Speed 12.5 knots a.5 Windows Panoramic a.6 Ventilation Air-conditioned a.7 Passenger Capacity at the option of the winning operator to determine the capacity a.8 Freeboard, average two (2) feet a.9 Operating Draft four (4) feet maximum a.10 Air Draft ten (10) feet maximum a.11 Length to consider a.14 a.12 Accessibility BP 344 Compliant a.13 Class Built under class by any MARINA-accredited Classification Society a.14 Access Points two (2) at each side, for ingress and egress, located approximately three (4-5) meters apart

b. Hours of Operation 5:00AM – 10:30PM

c. Number of Vessels

c.1 Peak Hours/Off-Peak Hours

Initially, the winning operator shall be required to have a minimum of ten (10) vessels. d. Departure Time Interval

d.1 Peak Hours/Off-Peak Hours

(option of the winning operator to decide on the departure time interval during peak and off-peak hours depending on the demand)

e. Loading/Unloading Duration

e.1 Peak Hours/Off-Peak Hours

(option of the winning operator to decide on the loading/unloading duration during peak and off-peak hours depending on the demand)

f. SOLAS Compliance. Each ship shall comply with all applicable provisions of MARINA MC 89, MC 176, MC 171, MC 159, including the requirements for nighttime navigation.

g. MARPOL Compliance. Each ship shall comply with all applicable provisions of PCG Memorandum Circular Nos. 01- 2001 and 09-2001 on marine pollution.

h. Maintenance Program. The operator shall have a Maintenance Yard and a Fleet Maintenance Program in accordance with MARINA MC 178.

i. Security Plan. A Ship Security Plan approved by the Pasig River Transport System Operation Center shall be provided for each ship.

The EC shall first open the 1st Envelope containing the Technical Proposal, one at a time, and read out and record the following: i. Name of Prospective Operator; ii. The presence or absence of each document comprising the Technical Proposal vis-à-vis a checklist of required documents.

The EC shall check the submitted documents against a checklist to ascertain if all documents are present in the Technical Proposal, using non-discretionary pass/fail criteria. Afterwards, the EC will examine the Details of Operation against a checklist for completeness and compliance with the required operating standards.

If the prospective operator submits all the required documents, and its Details of Operation is complete and fully complies with the operating standards, it shall be rated “passed”, and the EC shall proceed to open the 2nd Envelope (Fare Proposal).

Failure to submit a requirement, or an incomplete, invalid or patently insufficient submission, or the proposed Details of Operation not complying with the operating standards, shall be considered “failed”, and the EC shall not open the 2nd Envelope (Fare Proposal) of that prospective operator anymore, but instead immediately return the 2nd Envelope unopened. 2) Fare Proposal (Second Envelope), which shall include:

a. Proposed Fares for the first year of operation rounded off to the nearest fifty (50) centavos for the following routes:

a.1 first 4 kilometers a.2 Bambang-Escolta (approximately 16.55 kilometers)

b. Detailed Derivation of Fare including breakdown of operating and maintenance costs

Note: Fare structure for the succeeding years shall be in accordance with an Automatic Fuel Adjustment Formula to be included as part of Section 4 - General Conditions of the Contract (SCC). A quarterly fare review shall be conducted to obtain the necessary inputs to the Automatic Fuel Adjustment Formula. Increases warranted by the Formula shall be implemented no sooner than one month after review.

The EC shall forthwith open the 2nd Envelope (Fare Proposal) of prospective operators rated as "passed" in the Technical Evaluation, one at a time, and read out and record the following:

i. Fare Proposal for the first year of operation ii. The presence or absence of each document comprising the Fare Proposal vis-à-vis a checklist of required documents

The EC shall check the submitted documents against a checklist to ascertain if all documents are present in the Fare Proposal, using non- discretionary pass/fail criteria.

If a prospective operator submits all required documents, it shall be rated “passed”. In this regard, failure to submit a requirement, or an incomplete, invalid or patently insufficient submission shall be considered “failed” and the EC shall immediately disqualify the prospective operator.

The detailed instructions for the Submission and Opening of Proposals are found in Section 3 of this Selection Documents – Instruction to Proponents.

c) Ranking System – The fare proposals that "passed" shall then be ranked from lowest to highest. As provided for in Section 3 of this Selection Documents – Instruction to Proponents, the proponent with the lowest fare proposal shall be declared as the Highest Ranked Proponent (HRP).

6.3.4 Notice of Selection – The EC shall endorse the results of the Selection Process to the AC. Upon approval, the AC shall issue a Notice of Selection to the prospective operator with the HRP and shall send an endorsement to MARINA, copy furnished the selected operator, for the issuance of CPC.

Note: The whole selection process shall be completed in one sitting, therefore any issue such as clarity of words and numbers shall be resolved by a unanimous interpretation of not less than three (3) members of the EC or AC as the case maybe. 6.3.5 Ship Building/Acquisition Phase/Compliance with other requirements for CPC issuance – The prospective operator shall commence ship building / acquisition activities immediately after receipt of the Notice of Selection and shall strictly follow the approved schedule as provided for in the technical proposal. The EC, together with MARINA personnel, shall conduct regular inspections and verifications to ensure compliance with the Selection Documents and this TOR, and the requirements of the following laws, rules and regulations, and MARINA Memorandum Circulars:

a) Construction Certificate pursuant to PD 1059 b) Tonnage Measurement Certificate pursuant to MC89 and PMMRR’97 c) Proof of Supervision of Inclining Experiment pursuant to PMMRR’97 d) Stability Certificate pursuant to PMMRR’97 e) Loadline Certificate pursuant to PMMRR’97 f) Certificate of Ownership and Certificate of Vessel Registry pursuant to MARINA MC90 g) Bay and River License h) Ship Safety Documents (Ship Safety Certificate, Class Certificate, Radio/Ship Station Licensure, Document of Compliance, Safety Management Certificate) i) Certificate of Compliance with MARINA MC Nos. 65/65A, 150, 196, and compliance with MC Nos. 72, 98, 135 and 136, as applicable. j) Picture of the Ship k) Passenger Insurance Coverage l) Jurisdictional Requirements

2.4 Issuance of Certificate of Public Convenience (CPC)

6.4.1 Each vessel to be put into service must have a CPC issued by MARINA. 6.4.2 No CPC application shall be entertained by MARINA without the endorsement from the AC.

6.4.3 Cases when a vessel’s CPC may be cancelled or revoked by MARINA:

a) When vessel fails to operate within thirty (30) calendar days after issuance of CPC. b) When the vessel’s assigned service is abandoned for a period of seven (7) calendar days for no valid reason. (Note: For less than seven (7) days not operating, corresponding penalties shall be imposed by the Pasig River Transport System Operation Center.)

2.5 Commencement of Operation. The selected operator, after meeting the minimum number of vessels with valid CPC’s as required in this TOR, shall commence its operation.

2.6 Contract of Transport Service Operation. A Contract of Transport Service Operation shall be executed by and between the Transport Service Operator and the DOTC, MMDA, and PRRC.

7. GUIDELINES ON FERRY STATIONS

7.1 Number. The transport system shall initially cover the twelve (12) identified ferry stations as enumerated in section 7.2.2. Additional ferry stations along the tributary rivers connected to the Pasig River, Marikina River, Laguna de Ba-e, and Manila Bay areas shall be considered in the succeeding phases of the Project. The operator for the succeeding phases shall be subject to another selection process.

7.2 Location. The locations of the twelve (12) initially identified ferry stations are: 7.2.1 Jones Bridge, Escolta, Manila 7.2.2 Plaza Mexico, Manila 7.2.3 Arroceros, Manila 7.2.4 Nagtahan, Manila 7.2.5 Polytechnic University of the Philippines (PUP), Manila 7.2.6 Sta. Ana Market, Manila 7.2.7 Lambingan Bridge, Manila 7.2.8 Hulo, Mandaluyong City 7.2.9 Valenzuela, Makati City 7.2.10 Poblacion, Makati City 7.2.11 Guadalupe Bridge, Makati City 7.2.12 Bambang Bridge, Pasig City 7.2.13 Marcos Bridge (East and West), Marikina City 7.2.14 Sta. Elena (East and West), Marikina City

7.3 Construction. The PRRC shall fund the construction of the twelve (12) initially identified ferry stations, including the provision of a ticketing system, security system, air-conditioning units and handicapped lift.

7.4 Operation and Maintenance of Ferry Stations

7.4.1 Station Operator. The ship operator selected from Section 6.3 of this TOR shall be initially given the privilege to operate and maintain the ferry stations.

7.4.2 Number of Operator. Only one station operator, referred to in the preceding Section 7.4.1 of this TOR shall operate all the identified ferry stations in conjunction with the operation of the passenger ferry service.

7.4.3 Contract of Ferry Station Operation. A Contract of Ferry Station Operation shall be executed by and between the Ferry Station Operator and the DOTC, MMDA, and PRRC.

7.4.4 Hours of Operation. The operation of the ferry stations shall coincide with the operation of the passenger ferry service.

7.4.5 Maintenance. The operator shall ensure that all ferry stations have adequate lighting, sufficient ventilation, and proper air conditioning, and shall maintain a high level of operability of all the fixtures and equipment located therein at all times.

7.4.6 Security. The operator shall be responsible for the security of the ferry stations, including all persons, passengers and the ships docked thereat, against any threat at all times. The operator shall operate the security equipment provided therein such as the surveillance cameras and walk- through metal detectors, and shall employ the services of a licensed professional security service provider to perform 24-hour guard duties at the ferry stations. In addition, each ferry station shall have a Security Plan approved by the Pasig River Transport System Operation Center.

7.4.7 Ticketing System. The operator shall operate and maintain the ticketing system provided in the ferry stations.

7.4.8 Telephones. The operator shall equip each ferry station with at least three (3) regular telephone lines for operational use and one (1) pay phone for public use. 7.4.9 Concessionaires. The operator may lease the commercial spaces in the ferry stations to concessionaires, subject to the approval of the Pasig River Transport System Operation Center.

7.4.10 Advertising. The Pasig River Transport System Operation Center shall exercise advertising rights over the ferry stations, and may bid out such advertising rights to interested parties. The specifications of advertisements shall be in accordance with existing laws, rules and regulations.

7.4.11 Obligations of the Ferry Station Operator. The ferry station operator shall at all times be bound by the provisions of the Contract of Ferry Station Operation.

8. THE PASIG RIVER TRANSPORT SYSTEM OPERATION CENTER

The Pasig River Transport System Operation Center shall be composed of members from the DOTC, MMDA, and PRRC who shall implement the provisions of this TOR and the Contract(s) of Transport Service/Ferry Station Operation, and shall perform all other administrative functions to ensure the smooth operation of the Pasig River Transport System.

9. EFFECTIVITY

This TOR shall take effect on ______.

APPROVED.

______Metropolitan Manila Development Authority Pasig River Rehabilitation Commission

______Department of Transportation and Communications