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Development Coordination

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Development Coordination Malolos-Clark Railway Project (RRP PHI 52083) DEVELOPMENT COORDINATION A. Major Development Partners: Strategic Foci and Key Activities 1. Major development partners in the Philippines transport sector are the Asian Development Bank (ADB), the Government of Australia, the Japan International Cooperation Agency (JICA), the Millennium Challenge Corporation (MCC), the United Kingdom, and the World Bank (Table 1). The Republic of Korea (ROK) and the People’s Republic of China (PRC) have also supported the country with transport infrastructure. Before its 2008 merger with JICA, the Japan Bank for International Cooperation provided substantial support for the transport sector. The development partners are united in supporting the national spatial strategy of the Philippine Development Plan (PDP), 2017–2022.1 ADB focuses on supporting the road and rail subsectors, and plays a supporting role in addressing governance, institutional capacity, and the low productivity of transport agencies. In addition to supporting the road subsector, ADB has extended assistance, together with JICA, for rail subsector projects. In the rail subsector, ADB and JICA will cofinance a series of projects that will eventually create investment opportunities for other cofinanciers, including private sector investors. Table 1: Major Development Partners Development Partner Project Name Duration Amount (million) Rail Transport JICA Metro Rail Transit Line 3 Rehabilitation Project 2018–2021 ¥38,101.0 Metro Manila Subway Project (Phase 1) 2018–2025 ¥104,530.0 North–South Commuter Railway Extension 2019–2024 ¥418,927.0 Project, Phase 1 (Malolos–Clark International Airport; Solis–Calamba), cofinanced with ADB North–South Commuter Railway Project 2018–2022 ¥241,991.0 (Malolos–Tutuban) Capacity Enhancement for Mass Transit 2016-2022 $388.08 Systems in Metro Manila Line 1 and 2 PRC Subic–Clark Railway Project 2019–2022 ₱50,031.00 PNR South Long-haul (Manila–Bicol) 2018–2022 ₱175,318.00 Road Transport ADB Improving Growth Corridors in Mindanao 2018–2023 $380.0 Road Sector Project Infrastructure Preparation and Innovation 2017–2021 $100.0 Facility (TA-loan, multisector) Road Improvement and Institutional 2011–2018 $62.0 Development Strengthening Transparency and 2009–2015 $1.0 Accountability in the Road Subsector Government of Southern Philippines Provincial Road 2008– A$100.0 Australia Maintenance Program Second National Roads Improvement and 2008– $10.5 Management Program (Grant cofinancing for institutional capacity development) JICA Road Upgrading and Asset Preservation 2011–2023 ¥40,847.0 Project Arterial Road Bypass Project Phase II 2012–2019 $37.8 Arterial Road Bypass Project (Phase III) 2018–2025 ¥9,399.0 Central Luzon Link Expressway Project 2012–2019 $187.7 Metro Manila Interchange Construction Project 2015–2022 $65.3 Phase VI 1 Government of the Philippines, National Economic and Development Authority. 2017. Philippine Development Plan, 2017–2022. http://pdp.neda.gov.ph/wp-content/uploads/2017/01/PDP-2017-2022-07-20-2017.pdf. 2 Development Partner Project Name Duration Amount (million) Metro Manila Priority Bridges Seismic 2015–2023 $80.6 Improvement Project Davao City Bypass Construction Project 2015–2023 $196.8 (Southern and Center Section) Support for Rehabilitation and Reconstruction 2018–2025 ¥2,000.0 of Marawi City and its Surrounding Areas New Bohol Airport Construction and 2018–2025 ¥4,376.0 Sustainable Environment Protection Project (II). ROK Samar Pacific Coastal Road Project 2017–2022 $20.8 Gapan–San Fernando–Olongapo Road 2009–2016 $29.1 Project, Phase II Cebu International Container Port 2018–2022 $172.64 Panguil Bay Bridge 2018–2022 $100.0 Modernization of Palawan’s Puerto Princesa 2017–2022 $71.61 Airport Dumaguete Airport 2017–2022 $100.0 MCC Secondary National Roads Development 2011– $214.4 Project United Kingdom United Kingdom–Tulay ng Pangulo sa 2004– $168.4 Kaunlaran (Bridge for Progress) (Nationwide installation of rapidly erected permanent urban flyover system and long-span bridges) World Bank Second National Roads Improvement and 2008–2016 $232.0 Management Program Regional Infrastructure for Growth 2011–2015 $50.00 Traffic and Transport Management for 2011–2015 $0.44 Philippine CDS Cities WB/AFD Cebu BRT Project 2014-2021 $200.21 Metro Manila BRT Line 1 Project (Quezon 2018–2021 $40.70 Avenue) ADB = Asian Development Bank, AFD = France Development Agency, BRT = bus rapid transit, ICT = information and communication technology, JBIC = Japan Bank for International Cooperation, JICA = Japan International Cooperation Agency, MCC = Millennium Challenge Corporation, PRC = People’s Republic of China, ROK = Republic of Korea, CDS=City Development Strategies Source: Asian Development Bank. B. Institutional Arrangements and Processes for Development Coordination 2. The project seeks to build partnerships in several ways: it will improve rail connectivity between Metro Manila and the Central Luzon regional center of Clark, including Clark International Airport (CIA). ADB is financing civil works (i.e. viaduct, stations, tunnels, and depot buildings) and JICA is financing the core system (i.e., track, depot equipment, power supply and electrification, and signaling and telecommunication systems) and procurement of rolling stock. JICA will also finance the general consultant and construction supervision consulting services, whose outputs will cover both JICA- and ADB-financed components. Consultants financed by ADB under the Infrastructure Preparation and Innovation Facility (IPIF) will further support the project management office with knowledge on project preparation, procurement, safeguards, especially resettlement planning and relocation of project affected households, and project management for large-scale railway projects.2 Development coordination will be ensured through regular meetings of development partners on transport and communication to discuss progress in building railways and further investment program for railways in the Philippines. 2 ADB. 2017. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Republic of the Philippines for the Infrastructure Preparation and Innovation Facility. Manila. 3 3. The government has prepared a roadmap to develop hierarchical regional centers and clusters in the Greater Capital Region, which comprises the National Capital Region (Metro Manila) and its surrounding provinces, and enhance economic development in these centers through improved rail and road connectivity.3 Development of railways in the Greater Capital Region is prioritized under the government’s “Build, Build, Build” (BBB) program4. The PDP recognizes that poor quality and/or insufficient infrastructure are a byproduct of low public and private sector investment. To meet the requirements of the Philippines’ expanding economy and growing population, the PDP calls for optimizing resources and investments through improved project planning and budgeting. The PDP also recognizes the need for improved coordination and integration of infrastructure initiatives at all levels of government. To attract investments in infrastructure, the PDP supports an improved institutional and regulatory environment for infrastructure, including separation of operational and regulatory functions among sector agencies; and encourages public–private partnerships by supporting streamlined project approval and implementation procedures. 4. The Department of Transportation (DOTr) is coordinating project development in the public urban transport and railway sector in Metro Manila and the Central Luzon Region financed by development partners (Table 1) and the private sector in line with the PDP and the BBB program. These investments include (i) rehabilitating Metro Rail Transit (MRT) line 3; (ii) extending Light Rail Transit (LRT) lines 1 and 2; and (iii) constructing MRT line 7 and MRT line 4 (15 km Ortigas–Rizal line); constructing a Quezon City–NAIA subway; building elevated pedestrian walkways known as Edsa Greenways; building a freight railway line from Subic to Clark and rehabilitation of the South long-haul railway line from Metro Manila to Legazpi in Southern Luzon. The government is also improving interchanges between the MRT and LRT lines and improving intermodal integration with buses and other transport modes. C. Achievements and Issues 5. ADB has coordinated closely with JICA to address capacity deficits and other constraints in the transport sector through lending and technical assistance. For instance, ADB has been supporting capacity building through project preparation and safeguard implementation in the DOTr using ADB’s IPIF. The preparation of the design and commencement of implementation of the Malolos–Clark Railway Project (MCRP) within a very short timeline represents a success of those well coordinated efforts under the quality infrastructure initiative of JICA and ADB. D. Summary and Recommendations 6. Coordination among development partners in the transport sector of the Philippines needs to become more effective, most notably in coordinating project design and building the capacity of government staff. The MCRP will require continuous close coordination between ADB and JICA. Consultants financed by ADB under the IPIF will continue to support the government in project preparation, procurement and project management for large-scale flagship road, water sector and railway projects to be financed by ADB and development partners. The government has requested for additional financing to IPIF to expand the scope for preparation of large-scale road, water sector and railway projects and address government staff training requirements 3 Japan International Cooperation Agency and National Economic Development Authority. 2014. Roadmap Study for Transport Infrastructure Development of Metro Manila and its Surrounding Areas (Region III and Region IV-A). Manila. 4 Build, Build, Build. http://www.build.gov.ph .
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