DOTC presents airport, rail projects to UK investors

MANILA, Philippines - The Department of Transportation and Communications (DOTC) yesterday drummed up support for several rail and airport projects worth over P400 bullion during a seminar with British investors.

DOTC undersecretary for planning Rene Limcaoco told participants of the UK Transport Solutions Business Seminar that the government is undertaking several rail projects as part of efforts to raise the share of railways in the total number of trips.

Limcaoco said the government is looking at increasing the share of rail to about 18 percent from the current six percent, compared to other countries with a share ranging between 22 and a high of 40 percent.

“Right now only six percent of trips in Manila are made through rail. We are planning to increase this to about 17 or 18 percent by expanding our existing railways and building new ones,” he added.

Upon completion of the projects, he said the number of passengers using the country’s rail system would hit three million from the current level of 1.2 million.

Rail projects including the P65-billion Light Rail Transit line 1 (LRT-1) Cavite extension project recently awarded to the Light Rail Manila consortium of Metro Pacific Investments Corp. (MPIC) and Ayala Corp.; the P69-billion Metro Rail Transit line 7 (MRT-7) of diversified conglomerate San Miguel Corp.; the P9.5-billion extension of LRT-2 all the way to Antipolo City; the P69.9-billion North-South commuter rail from Malolos, Bulacan to Calamba in Laguna; and the P138-billion mass transit loop or subway system.

Limcaoco also cited the ongoing upgrading of the single ticketing system through the P1.7- billion automated fare collection system (AFCS) being undertaken by the AF Consortium led by MPIC and Ayala Corp.

The DOTC official also presented several projects worth P109 billion to cover the expansion and modernization of key gateways as well as key secondary gateways and upgrading of old airports to jet-capable airports.

“We want to bring these airports into the jet age, turbo prop aircraft are more expensive to operate than jet aircraft,” he added.

Ongoing airport projects under the public private partnership (PPP) scheme include the P2.2-billion Laguindingan airport expansion as well as operation and maintenance (O&M); the P11.7-billion New Bohol airport project; the P10.3-billion Puerto Princesa airport expansion and O&M; the P5.9-billion Davao airport; the P4-billion Iloilo airport; and the P3.6-billion Bacolod airport.

“All the six airports will be bidded out this year. The issue we are facing is whether we will bid this out individually or to bid this out as a bundle,” Limcaoco said.

The DOTC has already awarded the P17.5- billion Mactan-Cebu airport expansion project to the tandem of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Airports.

Other transportation projects presented to the British investors include the P19.3-billion Motor Vehicle Inspection System; the P17.5-billion Davao Sasa port; the P4-billion Integrated Transport System-South terminal; and the P2.5-billion ITS-Southwest terminal.