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PH to ramp up investments in rail, aviation and maritime transport

The Department of Budget and Management (DBM) said 2019 marks the start of the government’s heavy investments in improving mass urban, aviation and maritime transport infrastructure. This is seen to improve seamless transport within the country which will help enhance economic activities in emerging growth centers.

ut of all the key departments, the DBM said the Department of Transportation (DOTr) will have the biggest increase in the 2019 national budget., The ODOTr’s budget will receive an increase of 89.3% to P76.1 billion, P35.9 billion more than the 2018 allocation of P40.2 billion. This will cover the payments for right-of-way access and resettlement, to avoid delays and complications in the implementation of infrastructure projects which will improve the availability and access to rail, air, and sea transport. Overall, the total budget for the Build, build, build program is P909.7 billion, equivalent to 4.7% of the GDP and 24.2% of the total 2019 budget.

The DOTr proposes to extend the ’ railway footprint to up to 2,000 kilometers (km) from the current 77 km. For 2019, the government gave the biggest allocation for projects with P24.59 billion. (see figure on the List of Rail Transport Projects for 2019). loans from the Japan International Cooperation Agency (JICA). Currently, the DOTr is moving forward with the selection of a The first batch of railway projects for 2019 is seen to Japanese contractor who will begin the PNR North 1 railway enhance economic activities in the emerging growth centers by the end of 2018. in the North-South direction. Two of the projects will be part of the North-South Railway Project that will cover 110 km of Another project is the PNR South Commuter line Phase 2. commuter lines stretching from Malolos, to Tutuban, This is a 72-km commuter line which will run from Solis to Los in the North, and Solis Tondo, Manila to Los Baños, Baños that will cut travel time between Manila and Calamba Laguna in the South. to 1 hour from the current 2 hours a day. According to the DOTr, both Asian Development Bank (ADB) and JICA are The PNR North 1 Project is a 38-km commuter railway considering co-financing the South Commuter line project. that will cut travel time from Bulacan to Manila to around 35 minutes. This will be extended to the Clark Airport and New Both projects will be seamlessly integrated to serve as Clark City via the PNR North 2 and will reduce overall travel a feeder line to the upcoming Subway. It is time from Manila to Clark to less than an hour. The entire also complemented by similar projects made by the private project will cost up to P300 billion which is funded mainly by sector such as the -BGC Skytrain and the Makati

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LIST OF RAIL TRANSPORT PROJECTS FOR 2019

Source: 2019 People’s Proposed Budget, DBM

The government allotted a budget of P24.59 billion to railway projects for 2019 as part of their proposed 2,000-km increase on the country’s railway footprint. This will provide seamless transport between urban, residential and industrial hubs.

intra-city subway. As of September 2018, the Makati-BGC investments and tourism in the country. These projects Skytrain is currently being reviewed by National Economic will also connect the country with emerging countries and Development Authority (NEDA) while the Makati intra- and fast-growing cities to help drive economic growth city subway by IRC Properties is waiting for the formal (see figure on the List of Air Transport Projects for 2019). awarding of the project from the local government of Makati. One of the key projects include the New Bohol (Panglao) Meanwhile, the government is also investing heavily International Airport Development which costs P754 in the country’s aviation transport infrastructure, with million. Dubbed as the “Green Gateway to the World,” this P2.16 billion budget. The DBM said that the budget for is the country’s first eco-airport which is up to par with the air transport will facilitate exports, foreign direct international standards in green and sustainable structure.

LIST OF AIR TRANSPORT PROJECTS FOR 2019

Source: 2019 People’s Proposed Budget, DBM

The aviation transport infrastructure projects in provincial areas will help spur economic development at a more equitable pace. It will also connect the Philippines with emerging countries and fast-growing cities to help drive economic growth.

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LIST OF AIR TRANSPORT PROJECTS FOR 2019

Source: 2019 People’s Proposed Budget, DBM The overarching strategy for improving the country’s commuter and freight transport is to develop an intermodal transport network. This will ensure connectivity between industrial areas, major cities and rural areas.

According to the DOTr, the airport is already 92.14% ADB approves loans and new CPS with PH complete as of July 2018. It is targeted for completion by October 2018. The airport will have a total area of 13,884 The Asian Development Bank (ADB)’s newly approved square meters, 3 boarding bridges, a baggage handling system, loans and country partnership strategy (CPS) seeks and an apron that can accommodate 7 aircraft at a time. to improve the Philippines’ infrastructure, spur local economic development and invest in its human capital. The government will then further expand the capacity of the This will allow the government to leverage resources Panglao airport in 2019, according to the Department of Finance. to achieve their transformative social and economic This is in anticipation of the congestion that may arise from tourism agenda. traffic in the area. Additionally, talks are underway with JICA for a supplemental loan to support the airport’s expansion. Once The Asian Development Bank (ADB) has approved finished, the airport is seen to replace the old Tagbilaran airport and activated a total of $484.3 million in loans and and will be upgraded to handle regional flights within the Asia grants for the Philippines last August 2018. The Pacific. It will accommodate about 2 million passengers annually, amount covered 4 specific projects in support of the compared to the 800,000 passenger capacity of Tagbilaran Airport. country’s efforts in infrastructure development such as the Expanding Private Participation in Infrastructure The government also included maritime transport infrastructure Subprogram 2; Railway Project Implementation Support for 2019, allotting P2.5 billion for these projects (see figure on and Institutional Strengthening; the Philippine National the List of Maritime Transport Projects for 2019). One of the Oil and Co. (PNOC) Liquefied Natural Gas projects in this sector is the New Cebu International Container Project; and the Flood Risk Management Sector Project. Port Project worth P221 million which will address the existing port congestion in Cebu. The NEDA said that the project The Expanding Private Participation in Infrastructure, has an estimated economic internal rate of return of 20.1%. Subprogram 2 was allotted $479 million. Of the total allocation, $300 million will be financed through the The overarching strategy for improving the country’s ADB’s Ordinary Capital Resources while the $179-million commuter and freight transport is to develop an intermodal loan will be coming from the French Development transport network. This was done through operating projects Agency. The executing agency for this program is the in rail, aviation, and maritime transport as an integrated and Department of Finance (DOF) while the ADB’s role is coordinated network. According to NEDA, this will promote sub- to provide technical assistance (TA). The program is regional cooperation which will ensure connectivity between expected to be completed in October 2019, but the industrial areas, major cities, and rural areas. For years, inclusion of a post-program partnership framework will institutions like the ADB and the World Bank have criticized the allow the government to use TA resources until 2022. Philippines for lacking a cohesive transport strategy. In a report, JICA noted that this has led to significant congestion-driven According to the ADB, this program is focused economic losses which amounts to P3.5 billion daily. The current on consolidating Public-Private Partnerships (PPP) efforts in rail, aviation, and maritime infrastructure projects reforms to stimulate and facilitate the development of through the Build, build, build program show that the country the Philippines' PPP market. It will also ensure that these has a clear vision in steering development across the region. earlier reforms are successfully implemented. It is expected to improve overall private participation in infrastructure development and help reach the target public spending Philippine ANALYST INFRASTRUCTURE September 2018 86 INFRASTRUCTURE

The ADB approved a total of $483.3 million last August 2018 to help accelerate the government’s infrastructure program. Their biggest investment is on enhancing Public-Private Partnerships to help increase private sector participation in infrastructure development.

equivalent to 7.4% of the gross domestic product by 2022. facilities, a power plant, loading or unloading area for LNG carriers, and supporting infrastructure that will improve the The ADB also gave priority to the Railway Project operations of the Philippine National Oil Company (PNOC). Implementation Support & Institutional Strengthening The project will be the 1st LNG project in the Philippines. with $2 million from the ADB’s Japan Fund for Poverty The finished facility will address the energy supply risk in the Reduction. The agency in charge of its implementation is country as well as reduce the need for fuel imports such as the Department of Transportation (DOTr). Currently, the coal or liquid fuel. It will also help alleviate additional cost- program is active and is expected to end by August 2020. burden from expensive fuel and exchange rate volatility, promote jobs creation, and stimulate the local economy. The ADB said that the railway project will support the construction of the 51-kilometer (km) section of a new railway The ADB is also investing $1.3 million in the government’s connecting Metro Manila and the regional center in Clark Integrated Flood Risk Management Sector Project. and the Clark International Airport, located in the Central Bulk of the amount ($1 million) will be coming from the Region, around 100 km north of Manila. The new rail TA Special Fund while the remaining $300,000 will be will provide seamless transport from Metro Manila to Central coming from the Cooperation Fund for Project Preparation Luzon and will reduce greenhouse emissions. This supports in the Greater Mekong Subregion and in Other Specific the country’s National Spatial Strategy (NSS) under the Asian Countries. The project was approved last June Philippine Development Plan 2017-2022 which serves as the 2018 and became active last August 2018. It will end by basis for policies on urban and infrastructure development, June 2020. Presently, the ADB is recruiting consultancy including the government’s “Build, build, build” program. firms who can assist with the project by October 2018.

Another sector the ADB is investing in is the energy The project will help strengthen flood data acquisition sector. The Philippine National Oil Company (PNOC) and flood protection asset management as well as aid in Batangas Liquefied Natural Gas (LNG) Project was also rehabilitating and constructing flood protection infrastructure. It given $2 million from the ADB’s TA Special Fund. The will also raise community awareness and prepare disaster risk project is currently active and is targeted for completion by reduction and management plans to reduce flood risks in 6 river February 2021. Its implementation is being led by the ADB. basins across Luzon (Apayao-Abulog), Visayas (Jalaur), and (Agus, Buayan-Malungon, and -Libuganon). The proposed project consists of a 5-million ton per annum LNG terminal that include storage units, re-gasification ADB’s investment in the energy sector supports the government’s medium-term objective of ensuring energy security and expanding energy access in the Philippines.

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For the Philippines to maintain its economic growth, the ADB will lend an estimated $7.8 billion from 2018-2021. Through this new partnership strategy, ADB will assist the Philippine government in significantly improving economic conditions that will help bring development across the country.

These projects are all part of the ADB’s new 6-year The project’s proponent, C5 Mass Transit Corp. Ltd., CPS with the Philippines which is centered on accelerating names George Uy as its local partner, while Sumitomo infrastructure investment, promoting local economic Corporation is the foreign partner. Geoge Uy is one of the development, and investing in human capital. Other projects original proponents of MRT-7 before San Miguel Corp. took also include the North-South , Metro Manila over the project. The MRT-10 is a build-operate-transfer Bridges, Bataan- Long-Span Bridge, and EDSA (BOT) project which the government will amortize for 25 to Greenways projects. The ADB will lend an estimated $7.8 30 years, which the proponent will operate for the next 30 billion, or nearly $2 billion annually, from 2018 to 2021. It to 35 years. The government is expected to have a share in will actively pursue co-financing agreements with other the revenues of the MRT-10, which is seen as a financially development partners to help the Philippine government. viable project since it will run parallel to the and located in areas with high number of passengers. The Philippines has been enjoying its longest economic expansion in decades. Despite this, growth has been Public Private Partnership (PPP) Center data indicate that downplayed by huge infrastructure gaps and poor connectivity the MRT-10 project involves the design, building, operation between regions, markets, and people. The government and maintenance of the approximately 22.5-kilometer mostly hopes that with these investments, the country will have more elevated Light Railway Transit (LRT) System consisting of 16 opportunities to open to a bigger market to help improve the stations. The railway will traverse the circumferential road C-5 lives of Filipinos. connecting the NAIA Terminal 3 to , terminating at Commonwealth Avenue with possible interchange with MRT-7 at Tandang Sora Station and LRT-2 at Aurora Station. NEDA reviews infra projects Another unsolicited proposal being reviewed by the NEDA The National Economic and Development Authority (NEDA) is is the Skytrain in and the East West Rail reviewing major unsolicited infrastructure projects, including connecting Quezon City and Manila. The P3.52-billion Fort the Metro Rail Transit (MRT) 10, the Skytrain and the East Bonifacio-Makati Skytrain Project involves the construction West Rail. of a 1.873-kilometer monorail system connecting and Edsa Guadalupe. The project was proposed by As NEDA Undersecretary for Investment Programming Infracorp Development Inc., the company led by Andrew Tan. Rolando Tungpalan stated, the ongoing review of major infrastructure projects includes the proposed railway of The East West Rail is also being reviewed by NEDA. The C5 Mass Transit Corp. Ltd., MRT-10, that will connect project is 9.4-kilometer railway line from Diliman, Quezon Commonwealth Avenue to the Ninoy Aquino International City, to Lerma, Manila; and includes interconnecting facilities Airport (NAIA). The railway will run perpendicular to with neighboring rail systems. The line will start either in MRT-7 in Tandang Sora to Katipunan in Quezon City Philcoa or Quezon City Hall and traverse Quezon Avenue up to Food Terminal Inc. (FTI) in City toward the and España to reach Lerma, Manila. The project is proposed NAIA. It will be parallel to the Metro Manila Subway. by East-West Rail Corp. and AlloyMTD - a consortium of A Brown Co. Inc. and MTD Philippines, a subsidiary of infrastructure conglomerate AlloyMTD of Malaysia. Philippine ANALYST INFRASTRUCTURE September 2018 88 INFRASTRUCTURE

Three major unsolicited transportation project proposals are being reviewed by NEDA.

Foreign contractors keen on Zamboanga power hh Shandong Electric Power Construction Co.- a unit of Power plant Construction Corporation of ; and hh ThyssenKrupp Industries India Pvt. Ltd.- a unit of Germany’s Foreign firms signified their interest in building the Alsons thyssenkrupp AG based in Pune, India. Power Group’s San Ramon coal-fired power plant that will The San Ramon Power plant is scheduled to start supply 105MW to to alleviate the power construction in the 1H 2019 with target operations by 2022. The shortage in the area. plant will supply power to Zamboanga City and neighboring The 105MW San Ramon power plant in Zamboanga areas. City has attracted the interest of 5 foreign construction and Alsons Power, Mindanao’s first independent power engineering companies which submitted bid proposals for the producer, presently operates 4 power plants in the engineering, procurement and construction (EPC) of the power with aggregate generating capacity plant by Alsons Power Group. These foreign companies are: of 363MW. These plants supply main cities such as Cagayan hh Dongfang Electric International Corp. - based in Chengdu de Oro, Davao, , and Zamboanga. China; Alsons Power is also embarking on renewable energy hh Jurong Engineering Ltd. - based in Singapore; projects such as run-of-river hydroelectric power projects in h h Northeast No. 1 Electric Power Construction Co., Ltd. Negros Occidental, Sarangani, Davao Oriental, Zamboanga (NEPC 1) - a wholly-owned subsidiary of China Energy del Norte, the two Agusan Provinces, and Surigao del Sur. Engineering Group;

Alsons Power is also embarking on renewable energy projects such as run-of-river hydroelectric power projects.

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Revised Bulacan airport contract under review The New Manila International Airport project in Bulacan was approved by NEDA in April. The project involves the The P735-billion New Manila International Airport project construction of a world-class international airport with 4 in the province of Bulacan is nearing realization following to 6 parallel runways, modern terminals, a seaport and an the submission of a revised concession contract by San industrial zone. SMC proposed to build this huge airport Miguel Corp. (SMC). The contract is now under review by complex on a 2,500-hectare property in Bulakan, Bulacan, the Department of Transportation (DOTr) after which it will be an area that is 27 kilometers from Ninoy Aquino International submitted to the NEDA Investment Coordination Committee Airport, or 45 minutes from any point in Metro Manila via (NEDA-ICC) for final approval. multiple expressways. With project cost of $5 billion or P735 billion, the project will be constructed in 5 to 7 years. San Miguel Holdings Corp., the infrastructure arm of SMC, submitted to the DOTr the revised contract for the P735- SMC has been credited for delivering some of the billion Bulacan airport project. The revision of the concession country’s largest infrastructure networks. Its major projects agreement is in line with the provision raised by DOTr, include the NAIA Expressway, Tarlac-Pangasinan-La NEDA and the Department of Finance (DOF) that there is no Union Expressway, and Boracay Airport runway extension government guarantee and that the project is “purely a private project. Its ongoing projects include the MRT-7 project, sector risk. “ SMC, however, gave the assurance that it can Stage 3, South East Metro Manila Expressway finance the project from its own resources. Other key issues in and SLEx-TR 4 projects. SMC also operates the Skyway the contract that were raised include the definition of what may system, the and the Star Tollway. constitute a material adverse government action and potential compensation to the proponent in case laws are changed. The proposed airport project in Bulacan replaced SMC's proposal in 2014 to the previous Aquino administration to According to the DOTr, the government is set to give build a $10-billion airport in the reclaimed area at Manila final approval and award the contract by December Bay. The administration of former President Benigno 2018 or early 2019 following a Swiss challenge, a type Aquino III rejected unsolicited infrastructure projects from of bidding that allows other groups to submit rival offers. the private sector due to corruption controversies that The DOTr is preparing for the Swiss challenge which surrounded private sector projects such as NAIA-3 in 2011. also involves the drafting of the terms of reference and minimum performance standards and specifications, the bid parameters and the risk allocations matrix that will form part of the tender documents for the Swiss Challenge.

The Bulacan airport project involves the construction of 4 to 6 parallel runways, modern terminals, a seaport and an industrial zone.

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Two projects of “national significance“ The DOE declared on September 11 as project approved of national significance the application by Atimonan One Energy Inc. to construct the country’s first ultra- The Department of Energy (DOE) has certified 2 more power supercritical coal power plant in Atimonan, Quezon with projects as “Project of National Significance” under Executive capacity of 2x600MW. Atimonan One Energy is a wholly- Order (EO) 30: Atimonan coal power plant in Quezon and the owned subsidiary of PowerGen Corp. (MGen). Talim wind power plant in . Another project is the 151.2-MW Talim wind-power project Executive Order (EO) 30 specifies that concerned of Island Wind Energy Corp. Still in its pre-development government agencies must act upon applications for permits stage, the project was approved on August 30. It will be involving Energy Projects of National Significance (EPNS) not constructed in Talim Island, Binangonan and Cardona, Rizal exceeding a 30-day period. If no decision is made within the with target commercial operations operation of the 1st phase specified processing time frame, the application is considered 80MW plant in June 2020 and the 70MW plant in June 2021. a p p rove d by t h e c o n c e r n e d ag e n cy. EO 3 0 effe c t i ve l y re d u c e d the time to process the permits needed for power projects In August, DOE declared the geothermal-power project to take off. of Aragorn Power and Energy Corp. In Kalinga, Apayao as an energy project of national significance. Still in its pre- For power generation and transmission projects to be development stage, the project involves the development of considered among the EPNS, they must have a capital steam fields that can generate between 100MW and 200MW. investment of at least P3.5 billion and should have significant contribution to the country’s economic development and In May, the DOE certified the Visayas-Mindanao beneficial impact on the environment. They must also Interconnection Project (VMIP) as the 1st power project under entail complex technical processes and engineering EO 30. The VMIP involves the interconnection of the Visayas designs, and with significant infrastructure requirements. and Mindanao via Cebu and Zamboanga into a single national grid, with project cost of P52 billion and completion period of 46 months.

EO 30 effectively reduced the time to process the permits needed for power projects to take off.

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STATUS OF BIG TICKET INFRASTRUCTURE PROJECTS IN THE PIPELINE AS OF SEPTEMBER 30, 2018

FUNDING CIVIL WORKS PROJECT TITLE IMPLEMENTING AGENCY PROJECT COST STATUS / ISSUES SOURCE TIMEFRAME ROADS AND BRIDGES DBM Secretary Ben Diokno identified this Improving Growth Corridors in project as one of the flagship projects for 2019. DPWH ODA 2019-2024 P25.15 billion Mindanao Road Sector Project Procurement for the DED is expected to begin in 4Q2018. The DOTr is pushing through with the project after results of the technical inspection with the World Bank and NEDA showed the viability Metro Manila Bus – Line 1 of the BRT. DOTr ODA 2018-2021 P4.79 billion (Quezon Avenue BRT) The Quezon Avenue BRT is set to proceed with the DED this year.

The DOTr is pushing through with the project after results of the technical inspection with the World Bank and NEDA showed the viability Cebu Bus Rapid Transit DOTr ODA TBD P16.3 billion of the BRT.

The DOTr has also signed a contract with a technical support consultant for the project. Metro Manila Bus Rapid Transit - Line 2 According to the DOTr, the project is currently DOTr ODA 2018-2021 P37.76 billion (EDSA/Central) undergoing evaluation. The DOTr submitted their recommendation to NEDA to cancel the project due to physical BGC to NAIA Bus Rapid Transit System BCDA & DOTr ODA TBD P44.03 billion constraints. The NEDA ICC and NEDA Board will handle the cancellation process for the projects. The DPWH granted Metro Pacific Tollway Corporation original proponent status last July Cavite--Batangas Expressway DPWH PPP 2019-2022 P22.4 billion 2018. Future important date for the project Project include the swiss challenge which will be held in 2Q2019. The DPWH is preparing the terms of reference Delpan-- Expressway DPWH PPP TBD TBD for the conduct of a feasibility study of the project. Infracorp Development, Inc. is currently looking for an operations and maintenance Makati-BGC Skytrain DOTr PPP TBD P3.5 billion (O&M) partner for the project. The company is discussing it with firms from Austria, France, Japan, and China. The DPWH decided to reopen and defer the repair and expansion of the bridge to January Estrella-Pantaleon Bridge Construction DPWH ODA 2018-2021 P5.97 billion 2019 due to the request of stakeholders. Project Construction is expected to be completed by May 2020. The DPWH has already certified Right-of-Way acquisition for the project. The construction will Panguil Bay Bridge DPWH ODA 2018-2021 P7.375 billion start on November 2018 and will end by October 2021. The DPWH contracted Ove Arup (Arup) & Partners HK to help facilitate and prepare feasibility studies and DED of the project. Sorsogon-Samar Project DPWH ODA 2019-TBD P375 billion The DOF submitted a proposal to CIDCA to seek help with the feasibility study of the program. The study will be completed in a year. Cebu – Negros Link Bridge These projects are currently listed as a priority for a technical assistance loan with DPWH TBD TBD P124.15 billion Cebu – Bohol Link Bridge the Infrastructure Preparation and Innovation Facility of the Asian Development Bank. The DOF submitted a proposal to CIDCA to seek Leyte – Mindanao Bridge DPWH TBD TBD TBD help with the feasibility study of the program. Panay-Guimaras Bridge CIDCA signed a a $13.4 million grant with DPWH to support the programs’ feasibility studies. DPWH PPP 2018-2023 P42 billion Guimaras – Negros Bridge The target date for the projects’ construction will be late 2018 or early 2019.

The DOF submitted a proposal to CIDCA to seek Bohol -Lapinig Island- Leyte Bridge DPWH TBD 2019-TBD P92.280 billion help with the feasibility study of the program.

AIR AND WATER PORTS

The procurement of consultant for the AE, EEIA, and DED study of the project started in 2Q2018. International Airport DOTr & CAAP GAA TBD P14.62 billion The feasibility study for the project started Project last 2Q2018 and is targeted to be completed in 3Q2018.

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The DoTr granted original proponent status to Aboitiz InfraCapital, Inc. (AIC) for the operations, maintenance, and future expansion New Bohol (Panglao) Airport of the New Bohol International Airport. DOTr & CAAP GAA 2018-TBD P2.335 billion Operations and Maintenance Project The DOTr is conducting a review and revision of the business case. The feasibility study for the project started last 2Q2018 and is targeted to be completed in 3Q2018.

The DOTr is currently updating the business case under the Philippine Transport System Bacolod-Silay International Airport DOTr & CAAP GAA 2019-2025 P20.26 billion Master Plan (PTSMP). The feasibility study for Project the project started last 2Q2018 and is targeted to be completed in 3Q2018.

The procurement of consultant for the AE, EEIA, and DED study of the project started in 2Q2018. The implementation of the project is expected Iloilo International Airport Project DOTr & CAAP GAA 2019-2025 P30.40 billion to start between 1Q-2Q 2019. The feasibility study for the project started last 2Q2018 and is targeted to be completed in 3Q2018.

According to NEDA, construction is set to begin next year. Chelsea Logistics Holdings Corp. Davao International Airport DOTr & CAAP GAA 2019-2025 P40.57 billion submitted an unsolicited proposal to develop Development Project and maintain the Davao International Airport.

San Miguel Corp. submitted a revised concession agreement incorporating the comments of NEDA and DOF. It is now being reviewed by the DOTr. New Manila International Airport DOTr PPP TBD P735 billion According to DOTr Undersecretary Ruben (Aerotropolis) Reinoso, the government plans to grant final approval and award the contract by the end of 2018 or early 2019. The DOTr and MIAA granted the NAIA Consortium Upgrading of Ninoy Aquino original proponent status. The proposal will DOTr TBD TBD P105 billion International Airport then be submitted to NEDA-ICC and will undergo a swiss challenge. Malaysia’s AirAsia Group placed a bid on an operation and maintenance contract on the project. Other foreign groups that submitted their bids are India’s GVK Airport Developers Ltd. and France’s Groupe ADP. Meanwhile, local groups that submitted their bids include San Clark International Airport BCDA PPP 2018-2020 P9.360 billion Miguel Corp., Metro Pacific Investments Corp., (Operations and Maintenance) Megawide Construction Corp., and Filinvest Development Corp. Other local companies were businessman Manuel Villar Jr.’s Prime Asset Venture and Central Luzon Infrastructure Consultancy Inc. Consortium. The procurement and preparation of the DED are ongoing. The procurement and preparation of the DED are ongoing and are targeted for completion by November 2018. Meanwhile, Clark Investors and Locators Clark International Airport Expansion Association (CILA), push for the development BCDA PPP 2018 P5.612 billion Project - Procurement of the EPC of the project as it presents the most practical and economical solution to the decongestion issues of NAIA. The group also made recommendations to increase the capacity to 80 million passengers by adding a 3rd runway. RAILWAY The Philippines and Japan signed the 1st tranche of loans amounting to P50 billion for the construction of the project this December. The stations will be built in , Tandang Sora, and North Avenue. Meanwhile, Shimizu Corp. is being eyed to head the Metro Manila Subway Project (1st 2018-2025 (partial DOTr ODA P356.96 billion construction of the project. Phase) operability: 2022) The DED for full alignment (excluding partial operability segment) is expected to be completed in November 2019. The procurement of the design and build contract for the Partial Operability segment is to be completed by 4Q2018.

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DBM Secretary Ben Diokno identified this project as one of the flagship projects for 2019.

The DOTr is moving forward with the selection North South Commuter Railway (PNR DOTr ODA TBD P144 billion of a Japanese contractor to begin construction North 1) of the project by the end of 2018.

The project will be mainly funded by loans from JICA. DBM Secretary Ben Diokno identified this project as one of the flagship projects for 2019.

Future important dates for the project include the Exchange of Notes and Loan Agreement PNR South Commuter Line (Tutuban DOTr ODA 2018-2022 P124.1 billion Signing in 4Q2018; the completion of DED in – Calamba) 2Q2019; and the start of works for PNR North 2 and PNR South Commuter in 3Q2019.

The ADB and JICA are considering co-financing the project. The DOTr expects to secure a loan from China by November during Chinese President Xi Jinping’s visit. Additionally, the department will be issuing bids to 3 Chinese contractors by this month.

PNR South Long Haul Project (Manila Future important dates include the Issuance of DOTr ODA 2018-2022 P151 billion – Bicol) Notice of Award for PMC Contract in September 2018; the Loan Signing of PMC Contract in November 2018; and the groundbreaking in August 2019.

The government is currently hiring consultants for the project. The DOTr scheduled a public consultation with traffic stakeholders on the project.

DBM Secretary Ben Diokno identified this project as one of the flagship projects for Project Phase 1 2019. Preparation of DED and land acquisition DOTr ODA 2018-2021 P35.26 billion (Tagum-Davao- Segment) activities for the project are ongoing.

Acquisition of the ROW and awarding of contractor will be by December 2018 while construction is set to begin on February 2019. It is expected to be finished by December 2021. Operations & Maintenance of LRT DOTr & LRTA PPP TBD No CAPEX Line-2 The procurement process of the project is on hold until further study. LRT Line 6 Project DOTr PPP TBD P65.09 billion The ADB approved a $2 million technical assistance grant for the project that will help the government prepare for project implementation and project management. The DED is expected to be completed by Malolos-Clark Railway (PNR North 2) DOTr ODA TBD P211.43 billion 2Q2019. ROW acquisition activities which are funded by GAA are ongoing while future important dates include the Exchange of Notes and Loan Agreement Signing in 4Q2018; and the start of works for PNR North 2 in 3Q2019.

The project is under evaluation of the members East-West Railway Project PNR PPP TBD TBD of the ICC-Technical Working Group.

The BCDA is currently calling for consultancy services on the advance preliminary works of the Subic-Clark Railway Project.

China(Loan)/ The Chinese Embassy has yet to provide the Subic-Clark Railway Project BCDA/DOTr 2019-2022 P50.031 billion GAA shortlist of contractors for the project.

The signing of commercial agreement is targeted in November 2018 during Chinese President Xi Jinping’s visit. OTHER PROJECTS Lower Agno River Irrigation System The NEDA Board has approved the NIA GAA 2018-2021 P3.5 billion Improvement Project implementation of the project. The consortium of San Miguel Corp. and New Integrated Flood Control, San Jose Builders Inc. has been given original Coastal Defense and Expressway DPWH PPP TBD TBD proponent status for the project. It is currently Project under evaluation of ICC.

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As to the infrastructure works, 3 Chinese contractors submitted its bids last June 20, 2018.

China EXIM Bank is conducting its internal New Centennial Water Source Project MWSS ODA 2018-2022 P12.2 billion assessment of the project and requested – Kaliwa Dam MWSS for additional documents last June 2018, in support of the latter’s application for concessional loan. This project is targeted to be signed during the state visit of Chinese President Xi Jinping in November 2018. The ROW activities and procurement of consultants for DED and construction supervision of the project are ongoing. Cavite Industrial Area Flood Risk DPWH ODA 2019-2024 P9.9 billion The target start of DED is in December 2018 Management Project while the civil works is expected in November 2019. The government The Chinese embassy has yet to provide a Ambal-Simuay River and Rio Grande shortlist of contractors that can undertake the de Mindanao River Flood Control DPWH ODA 2019-2025 P39.219 billion project by August 2018. This project is targeted Projects to be signed during the state visit of Chinese President Xi Jinping in November 2018.

ACRONYMS ADB Asian Development Bank AE Advance Engineering BCDA Bases Conversion and Development Authority CAAP Civil Aviation Authority of the Philippines CIAC Clark International Airport Corporation CIDCA China International Development Cooperation Agency DBM Department of Budget and Management DED Detailed Engineering Design DOF Department of Finance DOJ Department of Justice DOTr Department of Transportation DPWH Department of Public Works and Highways EEIA Engineering Environment Impact Assessment GAA General Appropriations Act ICC Investment Coordination Committee JICA Japan International Cooperation Agency LRTA Transit Authority MIAA Manila International Airport Authority MPIC Metro Pacific Investments Corporation MWSS Metropolitan Waterworks and Sewerage System NEDA National Economic Development Authority NIA National Irrigation Administration ODA Official Development Assistance PNOC Philippine National Oil Company PNR Philippine National Railways PPA Philippine Ports Authority PPP Public-Private Partnership ROW Right of way TBD To be determined WB World Bank

Philippine ANALYST INFRASTRUCTURE September 2018