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Study on Medium Capacity Transit System Project in Metro Manila, the Republic of the Philippines

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Study on Economic Partnership Projects in Developing Countries in FY2014 Study on Medium Capacity Transit System Project in Metro Manila, The Republic of The Philippines Final Report February 2015 Prepared for: Ministry of Economy, Trade and Industry Ernst & Young ShinNihon LLC Japan External Trade Organization Prepared by: TOSTEMS, Inc. Oriental Consultants Global Co., Ltd. Mitsubishi Heavy Industries, Ltd. Japan Transportation Planning Association Reproduction Prohibited Preface This report shows the result of “Study on Economic Partnership Projects in Developing Countries in FY2014” prepared by the study group of TOSTEMS, Inc., Oriental Consultants Global Co., Ltd., Mitsubishi Heavy Industries, Ltd. and Japan Transportation Planning Association for Ministry of Economy, Trade and Industry. This study “Study on Medium Capacity Transit System Project in Metro Manila, The Republic of The Philippines” was conducted to examine the feasibility of the project which construct the medium capacity transit system to approximately 18km route from Sta. Mesa area through Mandaluyong City, Ortigas CBD and reach to Taytay City with project cost of 150 billion Yen. The project aim to reduce traffic congestion, strengthen the east-west axis by installing track-guided transport system and form the railway network with connecting existing and planning lines. We hope this study will contribute to the project implementation, and will become helpful for the relevant parties. February 2015 TOSTEMS, Inc. Oriental Consultants Global Co., Ltd. Mitsubishi Heavy Industries, Ltd. Japan Transportation Planning Association Project Site Source: Study Team List of Abbreviations Abbreviation Full Name AFC Automatic Fare Collection AGT Automated Guideway Transit AL Aluminium ATO Automatic Train Operation ATP Automatic Train Protection ATS Automatic Train Supervision B/C Ratio Benefit and Cost Ratio BCDA Bases Conversion and Development Authority BIR Bureau of Internal Revenue BLT Build-Lease-Transfer BOD Biochemical Oxygen Demand BOT Build-Operate-Transfer BRT Bus Rapid Transit CBD Central Business District CBTC Communication Based Train Control CCTV Closed-circuit Television CDM Clean Development Mechanism CIF Cost, Insurance and Freight CMMS Computerized Maintenance Management System CNC Certificate of Non-Coverage CTC Centralized Traffic Control CV Crosslinked polyethylene insulated PVC sheathed cable DAO Department of Environment and Natural Resources Administrative Order DDO Department of Public Works and Highways Department Order DENR Department of Environment and Natural Resources DO Dissolved Oxygen DOTC Department of Transportation and Communications DPWH Department of Public Works and Highways E&M Electrical and Mechanical ECAs Environmentally-Critical Areas ECC Environmental Compliance Certificate ECPs Environmentally-Critical Projects EDSA Epifanio de los Santos Avenue EIA Environmental Impact Assessment EIARC Environmental Impact Assessment Review Committee EIRR Economic Internal Rate of Return EIS Environmental Impact Statement Abbreviation Full Name EMB Environmental Management Bureau ENPV Economic Net Present Value EO Executive Order EPC Engineering/Procurement/Construction EU European Union EWR The East West Rail EWRC The East West Rail Corporation FIRR Financial Internal Rate of Return FMB Forest Management Bureau FNPV Financial Net Present Value FOCC Financial Opportunity Cost of Capital FS Feasibility Study FX FX Taxi GDP Gross Domestic Product GOP Government of Philippines GRDP Gross Regional Domestic Product HOV High Occupancy Vehicle HUDCC Housing and Urban Development Coordinating Council IC Integrated Circuit IROW Infrastructure Right of Way IRR Implementing Rules and Regulations JBIC Japan Bank for International Cooperation JETRO Japan External Trade Organization JI Joint Implementation JICA Japan International Cooperation Agency LAN Local Area Network LAPRAP Land Acquisition Plan and Resettlement Acton Plan LLDA Laguna Lake Development Authority LRT Light Rail Transit LRTA Light Rail Transit Authority METI Ministry of Economy, Trade and Industry MM Metro Manila MMDA Metro Manila Development Authority MMUTIS Metro Manila Urban Transportation Integration Study MRT Metro Rail Transit MRTC Metro Rail Transit Corporation The project for capacity development on transportation planning and database MUCEP management NEDA The National Economic and Development Authority Abbreviation Full Name NFPA National Fire Protection Association NHA National Housing Authority NSCB National Statistical Coordination Board O&M Operation and Maintenance OCC Operation Control Center OD Origin and Destination ODA Official Development Assistance OEM Original Equipment Manufacturer PC Prestressed Concrete PCU Passenger Car Unit PCB Poly Chlorinated Biphenyl PD President Decree PEISS Philippines Environmental Impact Statement System PMU Project Management Unit PNR Philippine National Railways POP Persistent Organic Pollutant PPHPD Passengers Per Hour Per Direction PPP Public Private Partnership PRA Philippines Railway Authority Pre F/S Pre-Feasibility Study RA Republic Act RAP Resettlement Action Plan RC Reinforced Concrete RSS Receiving Substation SCADA Supervisory Control And Data Acquisition SDR Social Discount Rate SPC Special Purpose Company SSF Strategic Support Fund STEP Special Terms for Economic Partnership STO Semi-automated Train Operation SUS Stainless steel TSP Total Suspended Particular TTC Travel Time Cost UPS Uninterruptible Power Supply VAT Value Added Tax VGF Viability Gap Funding VOC Vehicle Operating Cost WACC Weighted Average Cost of Capital Table of Contents Preface Project Site List of Abbreviations Table of Contents Executive Summary (1) Background and Necessity of the Project ..................................................................... S-1 (2) Basic Policy for Determination of Project Contents ..................................................... S-2 (3) Project Overview .......................................................................................................... S-5 (4) Implementation Schedule ............................................................................................. S-8 (5) Technical Advantages of Japanese Company ............................................................... S-8 (6) Detail Schedule and Issues for Realization of the Project ............................................ S-8 (7) Project Site Map ........................................................................................................... S-9 Chapter 1 Overview of the Host Country and Sector 1.1 Economic and Financial Circumstances .................................................................... 1-1 1.1.1 Social Circumstances ........................................................................................ 1-1 1.1.2 Economic Circumstances .................................................................................. 1-1 1.1.3 Financial Circumstances ................................................................................... 1-2 1.2 Overview of Transport Sector of the Republic of the Philippines ............................ 1-5 1.2.1 Road Sector ....................................................................................................... 1-5 1.2.2 National Railway Sector ................................................................................... 1-6 1.2.3 Port Sector ........................................................................................................ 1-6 1.2.4 Aviation Sector ................................................................................................. 1-7 1.3 Overview of Project Area .......................................................................................... 1-8 1.3.1 General .............................................................................................................. 1-8 1.3.2 Road Condition ................................................................................................. 1-9 1.3.3 Urban Railway Condition ................................................................................. 1-9 1.3.4 Extension Projects of Urban Railway ..............................................................1-12 1.3.5 Future Projects of Railway in Metro Manila ...................................................1-12 Chapter 2 Study Methodology 2.1 Contents of the Study ................................................................................................ 2-1 2.1.1 Objectives of the Study ..................................................................................... 2-1 2.1.2 Outline of the Study .......................................................................................... 2-1 2.2 Study Methodology and Organization ...................................................................... 2-2 2.2.1 Study Methodology ........................................................................................... 2-2 2.2.2 Organization of the Study Team ....................................................................... 2-3 2.3 Schedule of the Study ................................................................................................ 2-4 2.3.1 Overall Study Schedule .................................................................................... 2-4 2.3.2 Study Periods .................................................................................................... 2-4 2.3.3 Work Activity of Field Surveys in Philippines ................................................
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