ADB to support DOTr to privatise Philippines rail projects

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The DOTr and Asian Development Bank (ADB) signed transaction service advisory agreements for the eventual turnover of the Metro Manila Subway (MMSP) and North-South Commuter Railway (NSCR) projects’ operations and maintenance (O&M) to private operators under a competitive selection process.

The agreement with ADB will allow the agency to expedite the completion of ongoing rail projects. Once the projects are completed, ADB will help set up the selection process for the most qualified and experienced private sector operators. ADB will also help accelerate the privatization of the operation and maintenance of Ninoy Aquino International Airport. The ADB’s advisory support will last until December 2024. 

The US$488.5 billion MMSP is a 33.1 km underground metro rail system that will traverse Metro Manila from Valenzuela City to Paranaque City, connecting to NAIA Terminal 3. The project will reduce travel time between Quezon City and NAIA from one hour and 30 minutes to 35 minutes. In its first year of full operation, it will handle about 370,000 passengers per day and then be able to serve up to 1 million passengers per day. The PHP873.62 billion (US$15,98 billion) NSCR project is about 147 km of commuter rail that runs from Clark, Pampanga, to Calamba, Laguna.

 

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