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Modernization of Davao, Philippines Transportation System

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Modernization of Davao, Philippines Transportation System MODERNIZATION OF DAVAO’S TRANSPORTATION SYSTEM 27th Annual CCPPP Conference on Public-Private Partnerships November 18-19, 2019 Sheraton Centre Toronto Hotel Toronto, Canada Engr. Manuel T. Jamonir, CE, EnP Assistant Vice-President for Operations Udenna Infrastructure Corp. Philippines A Davao-City based company founded in 2002 by Dennis A. Uy who is at the helm of the UDENNA Group of Companies. All eyes on the Philippines About the Philippines Canada Ontario Clark Beijing Tokyo Manila Philippines 2000 km 2000 10000 km 10000 6000 km 6000 km 12000 8000 km 8000 Manila Kuala Lumpur Singapore Jakarta Sydney Cebu Cagayan de Oro Davao Land Area Population Literacy Employment Zamboanga City 300,000 100.9 98% 94.6% Gen Santos City sq.km. million (2018) (July 2019) growth centers Economic Highlights and Prospects The Philippines will be an upper middle-income country1 in 2020. PHILIPPINES’ GNI PER CAPITA Unemployment is at its lowest in 40 years. 1 Based on World Bank threshold Source: Department of Finance, The Asset Philippine Forum October 2019 Source: Department of Finance, The Asset Philippine Forum October 2019 Drop in unemployment translates to drop in poverty incidence. Filipinos are “happier” based on 2019 UN Survey. FIRST SEMESTER POVERTY ESTIMATES AMONG THE POPULATION 2009 2012 2015 2018 2021 2022 Source: Department of Finance, The Asset Philippine Forum October 2019 INFRASTRUCTURE as catalyst for national growth Source: Philippines’ Department of Budget and Management About Davao City, Philippines Manila Cebu Land Area Population Employment Literacy Regional GDP 2,444 1.6M 93% 98.7% 8.6% sq.km. (2015) (2015) (2015) growth Davao City • 3x larger than Manila, 4x larger than Singapore • @2.8% growth rate, 3rd most populated city in the Phils. • Regional GDP growth rate is consistently higher than national levels Davao – It’s safer than you think CRIME INDEX Seoul, Incheon Tokyo Osaka Taipei Chang Mai Manila Davao City 54 Davao Philippines 72.58 Source: Numbeo 1 of only 6 Asian cities in the top 60 safest cities in the world Services (ALL FREE OF CHARGE): First of its kind in Asia 1. Emergency Calls Answering Point and Dispatch (ECAP-D) and third in the world 2. Emergency Medical Services (EMS) after the USA and 3. Urban Search and Rescue (USAR) Canada 4. Fire Auxiliary Services (FAS) 5. K-9 Unity Davao City’s transformation through the years… Investments Population Business Bureau - Mayor’s Permit Registrations, Value in Php Million • 2.30% annual average growth rate in 2010 to 2015 • 409,951 households in 2015 1.6M • 51% Male 0.6M Tourism, Construction GRDP Growth Rates, Davao Region 2012-2018 In thousand pesos, at constant 2000 prices CAGR (Davao Region) = Tourist 2,393,384 Construction 24,452 (2010 to 2018) 8.0% Arrivals Value, in Php,M 1,529,907 10,680 2014 2018 2014 2018 Sources: PSA, DCIPC The state of Davao City’s major infrastructure... The imperative… Our infrastructure CATCH UP facilities need to KEEP UP 6 Million 18 Million population of the passengers through the Davao Airport Davao Region by by 2050 2040 (DOTr projection) 5 Million 1.3 Million Projected number of TEUs container cargo daily motorized trips in the Davao Gulf by 2045 by 2050 Source: JICA I4M Davao, DOTr and Udenna studies responds to the challenge… Public-Private Partnership on major infrastructure improvements to support Davao’s accelerating growth. Davao City Land Transport Routes and Modes Jeepneys Provincial Bus Multi-cab UV Express Tricycles City Bus Payong-Payong • Approximately 126 routes served by PUJs, multi-cabs, and Filcabs • Public transport modes largely unchanged since the ‘70s Taxi Habal-Habal JICA Davao Survey Among Commuters 1. Traffic congestion has gotten worse over the years HIS Respondents’ Assessment of Traffic to Workplaces/Schools by Administrative District HIS Respondents’ Assessment of Current Traffic Situation Compared to 5 Years Ago 2. Increased car use is the major cause of congestion Causes of Traffic Congestion According to HIS Respondents Public Transport Services Preferred by HIS Respondents 3. Davaoeňos prefer URBAN MASS TRANSIT as public transport service Survey for Urban Mass Transit Started in 2016 Volume Counts (PT Only) Obtain data derived from previous • Traffic volume count studies and available annual • Trip generation average daily traffic (AADT) • Origin-Destination • Stated preference • Others traffic secondary surveys data PT Passengers in Key Corridors alignment Assessment of alignment and assessment right-of-way Identification of potential station locations Selection of Alignment and Station Locations Mass Transit Alignment Based on Survey • 60% of the district population resides in this urban core • Population density of 172 person/ha. • 63% of the employed district population • Length = 13.5 kms • High daytime population • No of Stations = 15 • The alignment is confirmed by the JICA- Infrastructure Modernization Plan for Davao City, Korean LRT Study and key trunk route of the ADB-assisted Public Transport Modernization Study Challenges: • Buhangin Grade Interchange • Informal settlers at some potential stations • Bankerohan Bridge • Arcaded buildings in some streets • Proposed Maa Grade Interchange 16 Traffic Demand Forecast and Technology Selection YEAR Daily PPHPD Ridership 2025 147,285 4,662 2055 377,030 12,133 PPHPD – Passengers Per Hour Per Direction Advantages of a Monorail Safe and reliable. Derailment Modular vehicles allow simplified is virtually impossible. capacity expansion. Can handle relatively steep gradients and sharp curves. Environment friendly – low noise and low pollution Fast installation of guideway Elevated right of way promotes Easy integration to the Minimal space and minimal disruption during faster movement of people without environment and existing requirements construction impeding the traffic flow below infrastructure Modern look Preliminary Designs Conceptual Design (Guideway, Pier and Foundation) Preliminary structural design conducted Cantilever Alignment Survey Hammerhead Soil Investigations Portal Type @Bankerohan River Hydro Survey Preliminary Designs Conceptual Design of the Stations Perspective Side View Front View Project Information Start of the Project 2020 Proponent: Construction Period 4 years End of Construction 2024 Start of Operation 2025 PPP Scheme: Build, Transfer, Operate SM Lanang and Maintain Concession Period: 35 years Estimated Cost: C$ 955 Million Bangkal City Hall Objectives: ✓ Reduce traffic congestion in the urban center of Davao City ✓ Provide a modern, reliable, high-quality transit system interconnecting major focus points ✓ Ensure adequate, long-term, and sustainable transport system while supporting the current shift to cleaner sources of energy Comparative Advantages of a Monorail Bangkal to SM Lanang By Jeepney By Taxi By Monorail Fare C$ 0.6 (with transfer) C$ 5-6(via Grab excluding C$ 0.65 Bangkal to Roxas booking fee) Roxas to SM Lanang Travel Time 1 to 1.5 hours 45 minutes to 1.5 hours <30 minutes (2016 cost of Time=PhP12/hour) With the Monorail, WE CAN… Davao City AQI • Improve Air quality (less cars, less air pollution) Source: airquality.com Better (less time spent on the road, more time for work • Increase productivity and family) quality of life • Enhance security (modern security technologies, good lighting, CCTVs, etc) • Provide convenience for women, PWD, senior citizens for all (design elements will ensure accessibility, safety, convenience for all) 22 Financial & Economic Study Highlights ENPV =Economic Net Present Value; Benefits of EIRR =Economic Internal Rate of Return; project users BCR =Benefit Cost Ratio (Travel Time Estimated Project Cost: Savings) C$ 869 Million Economic Benefits Revenue Sources: Indicator: • Farebox NPV (at 10%) = 20.5 B PhP EIRR = 19.84% • Commercial and BCR = 2.88 Benefits of advertisement revenues other transport users (Vehicle To be economically viable: Operating Cost Project IRR: 10% Savings) ⚫ EIRR >10%, the Social Discount Rate set by NEDA ⚫ ENPV > 0, discounted using Social Discount Rate ⚫ BCR > 1.0 BT-OM Framework • Awards construction of system to Concessionaire • Payment of fixed Amortization Payment over a 10-year period (Cost of Project) Contract GOPGOP Proponent or Builds the System BT Component • Awards operations and maintenance to • Gets farebox proponent/O&M entity • Operate and Maintain • Retains regulatory powers on fares • Pays taxes to GOP ProponentOperator OM Component Conceptual Visualization of the Davao People Mover Feeder and Trunk System Primary Secondary / Bus (HPBS) Urban rail Network Tertiary Networks Express connections / Backbone of public transport network: MONORAIL Monorail Tricycles Feeder lines and Connectors: Bus BUS Jeepneys BUS Dense areas not influenced by Monorail Small buses Major multimodal hubs: P+R, Services & Accomodations etc. Outlying areas serving: railways, bus, jeepneys Urban and local developments due to the proximity of the multimodal hub BUS 26 Visualization of the Bus-Monorail Complementation Along Pichon St (2x2 road) Along CM Recto Avenue (2x2 road) Visualization of the Bus-Monorail Complementation With median Along McArthur Highway Without median General Timeline Unsolicited Proposal submitted by Udenna NEDA Approval Project Award Submitted in 2018 January 2020 Q2 2020 Granted in 2018 February 2020 2020 Swiss Challenge Original Proponent Status DED and conferred by DOTr Construction The Monorail and Other Land Transport Developments Davao Monorail, Line 1 Davao Monorail, Line 2 (FS Ongoing) Davao Monorail, Medium-term Extensions Davao
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