Optionale Zeile / optional line Transforming Public Transport in the Philippines The Jeepney+ NAMA of the Philippine Government As a federally owned enterprise, GIZ supports the German Government in achieving its objectives in the field of international cooperation for sustainable development. Published by: Department of Transportation (DOTr) of the Philippines The Columbia Tower Ortigas Avenue, Barangay Wack-Wack, Mandaluyong City, Metro Manila Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Postbox 5018 65760 Eschborn Germany T + 49 6196 79-0 E [email protected] I www.giz.de T +49 61 96 79-0 F +49 61 96 79-11 15 E [email protected] I www.giz.de Project: TRANSfer Project – Towards Climate-Friendly Transport Technologies and Measures Authors: Dr. Christian Mettke, Dr. Danielle Guillen, Cristina Villaraza (GIZ) Supervision: André Eckermann (GIZ) Photo credits: Alexis Fillone, Danielle Guillen, Christian Mettke URL links: This publication contains links to external websites. Responsibility for the content of the listed external sites always lies with their respective publishers. When the links to these sites were first posted, GIZ checked the third-party content to establish whether it could give rise to civil or criminal liability. However, the constant review of the links to external sites cannot reasonably be expected without concrete indication of a violation of rights. If GIZ itself becomes aware or is notified by a third party that an external site it has provided a link to gives rise to civil or criminal liability, it will remove the link to this site immediately. GIZ expressly dissociates itself from such content. GIZ is responsible for the content of this publication. Location and year of publication: Eschborn, 2016 ii DOTr, GIZ (2016). Transforming Public Transport in the Philippines -The Jeepney+ NAMA of the Philippine Government, Manila, Philippines. Available at: www.transport-namas.org/ Contact details of the DOTr representative Anneli R. Lontoc Undersecretary Department of Transportation The Columbia Tower Ortigas Avenue, Barangay Wack-Wack, Mandaluyong City, Metro Manila Disclaimer: The Department of Transportation (DOTr) of the Philippines thanks the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German Federal Enterprise for International Cooperation) for the collaboration and technical assistance in the preparation of this document. The collaboration with GIZ was conducted within the framework of the technical cooperation between the Philippines and Germany through the TRANSfer project, commissioned to GIZ by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB). The opinions expressed in this document do not necessarily reflect the views of GIZ and/or BMUB. Partial or total reproduction of this document is authorized for non-profit purposes, provided the source is acknowledged. Acknowledgements: We would especially like to express our sincere gratitude to the following government officials and experts for their input and contributions: Anneli Lontoc (Undersecretary for Road and Transport Infrastructure; OIC-Undersecretary for Planning, Department of Transportation), Mark Richmund De Leon (Assistant Secretary for Road and Transport Infrastructure), Vernice Victorio (Vice Chairperson, Climate Change Commission), Sandee Recabar (Implementation and Oversight Division Chief, Climate Change Commission), Sherielysse Bonifacio (former Assistant Secretary for Planning 2014-June 2016, Department of Transportation), Urda Eichhorst (Wuppertal Institute), Jane Romero (Asian Development Bank), Manuel Biona (De La Salle University), Alexis Fillone (De La Salle University), Robin Kaenzig (Integrated Transport Planning Ltd), Alvin Mejia (Clean Air Asia), Rudolf Petersen, Felicidad Narvaez (USAID), Andrea Henkel (GIZ), and Melissa Cruz (GIZ). © Partial or total reproduction of this document is authorized for non-profit purposes, provided the source is acknowledged. iv Jeepney+ NAMA Table of contents Executive Summary .................................................................................................................. 1 1 Introduction ....................................................................................................................... 12 2 Overview of the Philippine (road-based) public transport sector .................................. 15 2.1 Context of the jeepney sector .............................................................................. 15 2.2 Road-based public transport: Governance and market players............................ 19 2.3 Finance for public transport in the Philippines ...................................................... 22 2.4 Philippine road-based public transport policy in the context of climate change .... 27 2.5 International cooperation with the Philippines in the urban passenger transport sector .................................................................................................................. 29 3 Barriers to efficient and sustainable public transport in the Philippines ..................... 31 4 The NAMA: Objectives, measures and impacts .............................................................. 34 4.1 Objectives of the NAMA....................................................................................... 34 4.2 Scope and schedule of the NAMA ....................................................................... 36 4.3 Supportive measures at the national level ........................................................... 37 4.4 Mitigation measures under the NAMA ................................................................. 41 4.5 NAMA coordination and management ................................................................. 51 4.6 Expected sustainable development benefits ........................................................ 53 4.7 Expected ex-ante GHG mitigation ....................................................................... 55 4.8 Transformational character of the NAMA ............................................................. 56 5 The MRV approach: Monitoring, Reporting and Verification ......................................... 58 5.1 Scope and boundaries of the monitoring approach .............................................. 58 5.2 Calculation of GHG Impacts ................................................................................ 63 5.3 Monitoring Plan ................................................................................................... 70 5.4 Reporting set-up and process .............................................................................. 74 5.5 Verification .......................................................................................................... 75 6 Financing the NAMA ......................................................................................................... 76 6.1 Existing Market Business Model .......................................................................... 76 6.2 New Vehicle Investment Case ............................................................................. 79 6.3 Scale of Investment Requirement for Market Transformation .............................. 82 6.4 Review of Financing Options ............................................................................... 83 6.5 Financing Mechanism for the Jeepney+ NAMA ................................................... 84 7 Bibliography ...................................................................................................................... 89 8 Annexes ............................................................................................................................. 91 Annex 1: Description of Alternative Vehicles ............................................................... 91 v Jeepney+ NAMA Annex 2: Causal chain analysis of consolidation and modernisation ........................... 93 Annex 3: Ex-post Data Collection Framework for Workstream A ................................. 98 Annex 4: Ex-Post Data Collection Framework for Workstream B ................................. 99 Annex 5: Stakeholders and their roles and responsibilities ........................................ 100 List of Tables Table 1: General Overview – Philippine Context.......................................................................... 1 Table 2: Overview of consolidated jeepney fleet for 22% reduction in Metro Manila .................... 3 Table 3: Fleet investment requirements for Metro Manila (22% reduction of fleet) ....................... 7 Table 4: Ex-Ante GHG Impact Assessment 2016 – 2026 ............................................................ 9 Table 5: The Jeepney+ NAMA at a glance ................................................................................ 10 Table 6: General Overview - Philippine Context ........................................................................ 13 Table 7: Number of PUJ units owned by each operator ............................................................. 15 Table 8: Buses, jeepneys, and AUVs operating in Metro Manila ................................................ 16 Table 9: Registered vehicles in the Philippines, 2013 ................................................................ 18 Table 10: Annual Budget of the DOTr in 2014 ........................................................................... 23 Table 11: Jeepney Daily