72 INFRASTRUCTURE Construction of MRT-LRT common station After 8 years of delay, the construction of Metro Rail Transit-Light Railway Transit (MRT-LRT) common station is scheduled to begin in December 2017 following the signing of a memorandum of agreement (MOA) by concerned companies and government agencies. The completion of the P2.8-billion common station project is set for 2019. nder the MOA, the common station for the MRT and LRT will connect 3 main lines of LRT-1, MRT- U3 and the MRT-7 (from North Avenue, Quezon City to San Jose, Del Monte Bulacan). Signatories of the MOA were SM Prime Holdings Inc. (SM Prime), Universal LRT Corporation Limited (ULC) of the San Miguel Corporation (SMC); Light Rail Manila Corporation (LRTC); North Triangle Depot Commercial Corporation, Department of Public Works and Highways (DPWH); Light Rail Transit Authority (LRTA); and Department of Transportation (DOTr). The stakeholders met last September 28, 2016 to sign a memorandum of understanding (MOU), which lacked details, but considered an important event that gave way to the agreement by all concerned parties to finally work together for the completion of the common station project. The DOTr will undertake the financing and construction of the project, which it said, will have the benefits of seamless transfer from one line to another, bigger space and (sqm) station, passenger flow within the common station, as well connection to both SM North and TriNoma malls in Quezon City. as traffic management for the roads below, and commitment by The proposed design will be presented to concerned constituents, both public and private entities involved on specific expenses. representatives of various organizations and local officials to obtain It is also seen as an end to a legal row that has badly affected their feedback before coming up with the final design, according commuters of LRT-1 and MRT due to the absence of a connection to to the DOTr. The proposed common station consists of 3 areas: the 1.2-kilometer (km) disrupted tramline along EDSA, a piece of h Area A — location of the platform and concourse for LRT-1 property that is now being used as parking lot by the TriNoma mall. and MRT-3; The project has been delayed for 8 years as Sy family’s SM h Area B — location of the 2 concourses connecting Areas A North Edsa and Ayala Group’s TriNoma fought to acquire the right and C; and for the common station location. According to the DOTr, after the h Area C — location of the platform for MRT-7. completion of the detailed designs by 4Q2017, it is expected that an appeal for the dismissal of the case filed by SM Prime that led The MOA includes a blueprint for the implementation of the to the Supreme Court (SC) issuance of a temporary restraining common station and the role of each stakeholder in the project. order (TRO) in 2014 will result in the final resolution of the case. It contains the design parameters of the 13,700-square meter Philippine ANALYST INFRASTRUCTURE March 2017 INFRASTRUCTURE 73 The MRT-LRT common station will be built at a cost of P2.8 billion. The new location of the MRT-LRT common station as compared to earlier proposed sites. Source: Department of Transportation (DoTr) The common station will have 3 areas. Source: Department of Transportation (DoTr) Philippine ANALYST INFRASTRUCTURE March 2017 74 INFRASTRUCTURE The case stemmed from an agreement signed by the New timeline for regional airports PPP project government and SM Prime in 2009 for the construction of a common station near the annex mall of SM City North Edsa. The Department of Transportation (DOTr) announced the SM Prime paid the government P200 million in the deal that also new timeline for the regional airports under the public- included naming rights. But the project was delayed when a change private partnership (PPP) project. of government took place in 2010. A legal battle ensued when the Aquino government decided to transfer the location of the common The revised timeline for the regional airports project involves station near TriNoma citing that construction cost would be P1.4 finance, design, construction, operation and maintenance billion lower than in the original site. But the common station near of the Bacolod-Silay, Davao, Iloilo, Laguindingan, and TriNoma was criticized as commuters would need to walk farther. the New Bohol (Panglao) airports under the PPP scheme. In the proposed location of the common station under Under the PPP, the private partner will undertake the the MOA, commuters transferring from MRT-3 to LRT- operation and maintenance of the airport and build additional 1 and MRT-7 need only walk up 50 to 200 meters, facilities and other necessary improvements for passenger safety, depending on which train they use. In addition, the passenger security of the facility, passenger and cargo movement, and concourse can be expanded depending on future needs. overall operational efficiency under an agreed concession period. At the Senate hearing, some senators agreed that the current The submission of qualification documents has been set location is the best option although the Senate committee wants on May 11. Then, DOTr will release instructions to bidders “someone to be held liable for the P200-million naming rights and draft concession agreement on June 1. Bid proposals contract of SM Prime, which was not even auctioned off.” submission date is on December 8, while the issuance of the The senators also questioned the increase in project cost to notice of award is expected to take place by January 2018. P2.8 billion from P1.4 billion at 2,500 sqm in 2014, and P2.4 The Aquino administration offered the regional airports project billion at 7,200 sqm in 2009. The DOTr responded that the new in 2 bundles: Bundle 1 consisted of Iloilo Airport and Bacolod- location is bigger at 13,700 sqm and almost double the capacity Silay Airport, while Bundle 2 consisted of Davao Airport, New of the original 2009 design. The original design had single tracks Bohol (Panglao) Airport and the Laguindingan Airport. To speed and narrower concourses, while the latest design has dual tracks up the selection and awarding of the contracts, however, the Duterte to reduce headway to around 2.5 minutes, while the platform administration opted to unbundle the 5 regional airports PPP project. will span 6 meters compared to 3 meters from the previous plan. Below are the indicative costs of the regional Thirteen foreign and local business groups have urged the airports. All airports are existing except for the Bohol government to fast-track completion of the common train station, (Panglao) airport, which is being constructed by the a major transport project that was being derailed by prolonged joint venture of Mitsubishi and Chiyoda corporations. discussions in Congress given the questions on the construction Prior to the issuance of the revised timeline, several concerns were cost. The joint statement issued by the business groups urge the raised by interested bidders on the DOTr requirements. A request “expeditious completion of the common train station to link the for the extension of the submission of qualification documents was LRT-1, MRT-3 and the ongoing MRT-7 rail commuter lines in put forward by Filinvest Development Corp. Two firms, Metro a location that will conveniently serve the expected 1.5 million Pacific Investments Corp. (MPIC) and Aboitiz InfraCapital voiced commuters,” as they threw full support to the MOA signed. their concerns on the requirement that an airport operator of the participating group should have a 10% stake in the consortium. Philippine ANALYST INFRASTRUCTURE March 2017 INFRASTRUCTURE 75 INDICATIVE COSTS OF 5 REGIONAL AIRPORTS AIRPOrt IN BILLION PESOS NEW BOHOL (PANGLAO) 2.34 LAGUINDINGAN 14.62 DAVAO 40.57 BACOLOD-SILAY 20.26 ILOILO 30.40 TOTAL 108.19 The 5 regional airports have total indicative cost of P108.19 billion. Philippine Airports Consortium – which includes MPIC, Aeroports de Paris, and ADP Ingenierie – was pre-qualified by the Aquino administration to bid for the project. But its foreign partner, Aeroports de Paris, pulled out from the consortium after the Duterte administration announced its decision to unbundle the airports. Unbundling the PPP project into individual airport places uncertainty on the operator’s returns since each airport is small. As a result, MPIC is now looking for another foreign partner. Under the Aquino administration, the conglomerates that were pre-qualified to bid were: h Filinvest-Jatco-Sojitz Consortium - composed of Filinvest Development Corp., Japan Airport Terminal Co. Ltd, and Sojitz Corp.; h GMR Infrastructure and Megawide Consortium - composed of Megawide Construction Corp. and GMR Infrastructure Singapore Pte. Limited; h Maya Consortium - composed of Aboitiz Equity Ventures Inc. and VINCI Airports SAS; h Philippine Airports Consortium (Metro Pacific Investments Corp. and Philippines Airport Management Co.; and h SMHC-IIAC Airport Consortium - composed of San Miguel Holdings Corporation and Incheon International Airport Corp. Philippine ANALYST INFRASTRUCTURE March 2017 76 INFRASTRUCTURE Three major railway projects outside Metro The feasibility study for the initial phase of the subway Manila is set to be completed by September, while that of the commuter rail to Laguna is yet to be started. The feasibility The Japanese government committed to provide funding for 3 for the railway to Clark will be completed in April 2018. railway projects in the Philippines amounting to $8.8 billion. Details of the Mega Metro Manila subway were also These projects are included in the flagship infrastructure announced. To start construction by 4Q2020, the project will apply Japanese tunneling expertise and is targeted for projects of the Duterte administration. completion by 2Q2024.