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Project Information Memorandum 1 / 55 PROJECT INFORMATION MEMORANDUM 1 / 55 Republic of the Philippines Department of Transportation and Communications & Light Rail Transit Authority PPP for the Automatic Fare Collection System Project for LRT Lines 1& 2 and MRT 3 PROJECT INFORMATION MEMORANDUM PROJECT INFORMATION MEMORANDUM 2 / 55 Disclaimer This Information Memorandum has been prepared by the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA). All information in this Information Memorandum is qualified by the terms and conditions of the Instructions to Prospective Bidders. All information in this Information Memorandum shall also be qualified by the terms and conditions of the Instructions to Bidders to be released to Pre-Qualified Bidders, and the Concession Agreement and its Annexes, including the Minimum Performance Standards and Specifications and its Annexes. Drafts of the Concession Agreement and its Annexes, including the Minimum Performance Standards and Specifications and its Annexes, will be made available to Pre-Qualified Bidders. In case of any conflict between the information and terms in this Information Memorandum and the Instructions to Prospective Bidders and Instructions to Bidders, the information and terms in the Instructions to Prospective Bidders and Instructions to Bidders shall prevail. This Information Memorandum does not purport to be all-inclusive or to contain all of the information that a prospective participant may consider material or desirable in making its decision to participate in the tender. No representation or warranty, expressed or implied, is made, or responsibility of any kind is or will be accepted by the DOTC, LRTA, or the Government of the Philippines (GOP) or any of its agencies, with respect to the accuracy and completeness of this preliminary information. The DOTC and LRTA may amend or replace any of the information contained in this Information Memorandum at any time, without giving any prior notice or providing any reason. In furnishing this Information Memorandum, the DOTC, LRTA, or the GOP or any of its agencies undertakes no obligation to provide recipients with access to any additional information, or to update, or to correct any inaccuracies which may become apparent in this Information Memorandum or any other information made available in connection with the Project prior to the actual tender. Additional information shall be provided at appropriate times during the formal tender process. No person has been authorized to give any information or make any representation not contained in this Information Memorandum and, if given or made, any such information or representation may not be relied upon as having been authorized by the DOTC, LRTA, or the GOP or any of its agencies. THIS MEMORANDUM DOES NOT CONSTITUTE A SOLICITATION OF BIDS FOR ANY ASPECT OF THE AFCS PROJECT. SOLICITATIONS OF BIDS AND BIDDING GUIDELINES WILL BE PROVIDED IN THE INSTRUCTIONS TO PROSPECTIVE BIDDERS AND INSTRUCTIONS TO BIDDERS. PROJECT INFORMATION MEMORANDUM 3 / 55 Abbreviations ADB Asian Development Bank AFCS Automatic Fare Collection System BPS Basis points CAPEX Capital Expenditures CCHS Central Clearing House System CNC Certificate of Non-Coverage C&P Consultation and Participation CEDAW Convention on the Elimination of All Forms of Discrimination Against Women DSCR Debt Service Cover Ratio DSRA Debt Service Reserve Account DAO Department Administrative Order DOF Department of Finance DOLE Department of Labor and Employment DPWH Department of Public Works and Highways DOTC Department of Transport and Communication DMF Design and Monitoring Framework MMEIRS Earthquake Impact Reduction Study of Metro Manila EIRR Economic Internal Rate of Return ENPV Economic Net Present Value EMB Environmental Management Bureau EMP Environmental Management Plan EMoP Environmental Monitoring Plan EQPL Environmental Quality Performance Level FC Financial Close FIRR Financial Internal Rate of Return FSA Full Systems Acceptance/Approval GAD Gender and Development GOP Government of the Philippines IEC Information Education and Communication IRR Internal Rate of Return IFC International Finance Corporation ILO International Labour Organization JICA Japan International Cooperation Agency LRB Last Ride Bonus LRTA Light Rail Transit Authority LRT Light Rail Transit Line LRT1 Light Rail Transit Line no 1 LRT2 Light Rail Transit Line no 2 LLCR Loan Life Cover Ratio LGU Local Government Unit MRA Maintenance Reserve Account MRTC Metro Rail Transit Corporation MRT Metro Rail Transit Line no 3 MCIT Minimum Corporate Income Tax NCR National Capital Region NCC National Computer Center NEDA National Economic and Development Authority NPCC National Pollution Control Commission NTC National Telecommunications Commission NPV Net Present Value ODA Official Development Assistance OPEX Operational Expenditures PAX Passenger (number) PAGASA Philippine Atmospheric, Geophysical and Astronomical Services Administration PPGD Philippine Plan for Gender –Responsive Development PROJECT INFORMATION MEMORANDUM 4 / 55 PoS Point of Sale PPPC PPP Center PDMF Project Development and Monitoring Facility PLCR Project Life Cover Ratio PTO Public Transport Operator PPP Public-Private Partnership RDCC Regional Disaster Coordinating Council RA Republic Act RFP Request for Proposals ROE Return on Equity SAM Secure Application Module SLA Service Level Agreement SMA Service Maintenance Agreement SJT Single Journey Ticket SCBA Social Cost Benefit Analysis SPV Special Purpose Vehicle SVT Stored Value Card SPRSS Summary Poverty Reduction and Social Strategy ToR Terms of Reference TVM Ticket Vending Machine TA Transaction Advisory VAT Value Added Tax PROJECT INFORMATION MEMORANDUM 5 / 55 Table of Content Disclaimer ....................................................................................................................... 2 Abbreviations .................................................................................................................. 3 Table of Content .............................................................................................................. 5 PART I ............................................................................................................................. 7 1. Introduction ......................................................................................................... 7 2. Project Introduction ............................................................................................. 9 2.1. Light Rail Transport in Manila .................................................................................. 9 2.2. Current AFCS Scheme ............................................................................................ 11 2.3. Desired AFCS Scheme ........................................................................................... 14 3. Implementation Model ....................................................................................... 20 3.1. Business Model ..................................................................................................... 20 3.2. Value Chain .......................................................................................................... 21 3.3. Business Rules ...................................................................................................... 24 3.4. Governance and Decision making .......................................................................... 24 4. Project Scope ..................................................................................................... 26 4.1. Desired AFCS Project ............................................................................................ 26 4.2. High Level Functional Architecture ......................................................................... 26 4.3. System Components ............................................................................................. 28 4.4. System Architecture Options ................................................................................. 30 Legacy System Architecture ................................................................................................ 30 Centralized Virtualized System Architecture ......................................................................... 30 Systems as a Service ............................................................................................................ 31 4.5. Equipment ............................................................................................................. 31 4.6. Transition Scheme and Implementation Schedule .................................................... 33 4.7. Further Roll-Out.................................................................................................... 34 4.8. Connecting Extensions to the AFCS ........................................................................ 34 4.9. Connecting Other Transport Modes to the AFCS ......................................................35 5. Contracting Approach......................................................................................... 36 5.1. Legal Framework for Concession ............................................................................ 36 5.2. Contractual Structure ............................................................................................ 36 5.3. Contract’s Commercial Characteristics ................................................................... 39 PART II .........................................................................................................................
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