TOKYO has pledged a $2-billion official development assistance (ODA) package to Manila’s $6.27-billion North-South Commuter Railway initiative.
If this pushes through, this would be the single-biggest yen-loan program that Japan has ever extended to a development partner.
The pledge comes after Tokyo firmed up its commitment to cooperate with Manila in developing the Philippines’s transportation infrastructure. Manila will use the amount to build the first phase of the much-needed rail facility.
The first phase of the facility will involve the construction of a 36.7-kilometer narrow-gauge elevated commuter railway from Malolos, Bulacan, to Tutuban in Manila. It is seen to be completed by the third quarter of 2020.
The second phase, which will extend the commuter rail to Matnog, Sorsogon, will be completed by the fourth quarter of 2019. This will be auctioned off under the government’s Public-Private Partnership (PPP) Program.
Essentially, the whole project aims to revive the Bicol line of the Philippine National Railways (PNR), while improving its decades-old facilities that are far below the train systems of its peers.
The two-phase project is part of the P4.76-trillion Roadmap for Transport Infrastructure Development for Metro Manila and its Surrounding Areas, otherwise known as the Dream Plan, which was formulated by the Japan International Cooperation Agency.
The Dream Plan lists the transport-infrastructure requirements of the Philippines, facilities that are expected to alleviate potential losses and gain from prospective savings.
If the transport road map would not be implemented through 2030, the Philippines stands to lose roughly P6 billion daily in traffic costs. Currently, it loses P2 billion a day in transport costs.
A large chunk of the list will be implemented under the PPP scheme, which has been gaining traction since its launch in 2010.
The government has awarded 10 deals so far. It aims to award, at most, 13 more contracts before President Aquino bows out from office in 2016.