‘NSCR bidders must have at least P114 B net worth’

MANILA, Philippines — Prospective bidders for the North-South Commuter Railway (NSCR) project must have a net worth of at least P114 billion to compete for the concession to manage the country’s largest railway.

The Department of Transportation (DOTr) has issued the bidding documents for the P229-billion contract to operate and maintain the NSCR, the country’s single largest infrastructure investment co-funded by Japan.

Based on the instruction to bidders, the DOTr will select the offer with the lowest bid amount, or the smallest availability payments required every year.

The STAR broke the story that the DOTr plans to use availability payments as the bid parameter for the concession of the NSCR. This means the agency will award the deal to the bidder who asks for the lowest annual compensation to sustain the railway.

The bidders, however, will be required to show financial capability and technical expertise to be able to vie for the concession. In particular, bidders must present a background that they have operated a railway for three consecutive years over the past eight years.

The railway they have operated and maintained must have handled 45,000 passengers per hour in each direction, and bidders must show that they have kept this running 98 percent of the time.

Bidders have to possess a net worth of at least P114.65 billion, coupled with a letter testimonial from an established financial institution regulated by the Bangko Sentral ng Pilipinas.

For consortiums, the DOTr will assess the weighted sum of net worth of each member that holds a minimum of 15-percent stake, with the weight measured against their equity.

To participate, bidders have to pay the non-refundable fee of P1.16 million, or $20,000. Further, bidders have to submit a bid security of P2.37 billion to ensure they would comply with all of the post-award requirements if declared the winner.

For the timeline, the DOTr will issue the draft concession agreement on Nov. 7 and will hold a pre-bid conference on Nov. 20. It will host site visits and one-on-one meetings with prospective bidders from Nov. 17 to 28.

It will come out with the final concession agreement on April 30, 2026, and bids have to be submitted to the agency by May 29, 2026.

The DOTr earlier said it expects at least four groups -  mostly made up of Filipino and foreign investors  - to compete for the P229-billion concession to run the country’s largest railway, following the agency’s efforts to market the project in roadshows in Singapore, Paris, Manila and Tokyo.

The NSCR, costing P873.6 billion and co-financed by Japan, will span 147 kilometers across 35 stations between the Clark International Airport and Calamba, Laguna, and it is expected to ferry 800,000 passengers daily once completed.

The future operator of the NSCR will manage its trains, stations and depot, including its interline with the Metro Manila Subway Project.