Bautista: DOTr, ADB pacts to steer PH economic rebound
THE Transaction Advisory Services (TAS) agreements signed between the Department of Transportation (DOTr) and Asian Development Bank (ADB) will not only expedite the completion of big-ticket transport projects, but will likewise steer the country’s economic rebound, according to Secretary Jaime Bautista.
During the contract signing for the DOTr-ADB Office of Public-Private Partnership (OPPP) agreements, Secretary Bautista explained that with the assistance of the regional financial institution in the selection process of the operations of railway projects Metro Manila Subway (MMSP), and the North-South Commuter Railway (NSCR), only the most qualified and experienced private sector operators will handle and take over its functions.
The ADB OPPP assistance will also help the DOTr identify and develop the terms of references for the contract of the operations and management of the projects, he added.
“By extending the ADB’s advisory services on the Metro Manila Subway Project and the North-South Commuter Railway, we can fine-tune the selection process for the most qualified and experienced private sector operators for these railway projects,” he said.
As far as the modernization of the Ninoy Aquino International Airport (NAIA) is concerned, Secretary Bautista said the transport department is turning to the ADB for advice since its operations and management are up for privatization.
“We look forward in earnest to the ADB’s advice how to best proceed in modernizing and expanding the NAIA,” he said.
The agreements, according to Secretary Bautista, are “but the latest manifestation of ADB’s long-standing support for the country’s transport industry.”
As the DOTr’s transaction advisor, the regional development bank will act “in relation to the preparation, structuring, and procurement of the concessionaire for the Project,” according to the agreement.
The TAS agreement also includes the project’s high-level scope, such as financing, improvement, expansion, operation, and maintenance of the facilities.
Touted as the country’s “crown jewel” of the Philippine transportation, the MMSP is the country’s first-ever underground railway system, which stretches from from Valenzuela City to Bicutan in Taguig. Once completed, the project is expected to service over 519,000 commuters daily.
The NSCR, on the other hand, is the ADB’s single largest railway funded project in any country and will cut across 28 cities and municipalities within the three regions of Central Luzon, National Capital Region (NCR), and CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon). Once completed, the project is expected to serve over a million passengers a day.
Meanwhile, NAIA is the country’s busiest airport in the country, handling 47.8 million passengers per year as of 2019, before the global Covid-19 pandemic. As the primary airport serving the country’s capital, the NAIA has four terminals.
