WHEN the highest planning body of the government decides to approve the proposal of the Department of Transportation and Communications (DOTC) to split the P170-billion North-South Railway Project-South Line into two, the construction of the long-haul line that will connect Metro Manila to as far as Sorsogon may potentially be jeopardized.
Unbundling the southern line from the overall deal will lessen the palatability of the deal, as the railway line that will run through Matnog, Sorsogon, is still considered a greenfield project, Public-Private Partnership (PPP) Center Executive Director Andre C. Palacios said.
“If we cut them up to two different projects, it might take the long-haul line years to finish. There might not be a driving force for the quick implementation of the long-haul component of the project,” he told the BusinessMirror in a phone interview Monday.
Based on documents obtained by the BusinessMirror, the DOTC has proposed before the National Economic and Development Authority (Neda) Investment Coordination Committee-Cabinet Committee to split the largest rail deal to date into two—a commuter line that will run from Tutuban, Manila, to Los Baños, Laguna, and a long-haul line that will end in Matnog, Sorsogon.
Currently, at its first phase of the tender process, the original project covers Metro Manila to Legazpi City, Albay, plus a number of existing and proposed branch lines totaling approximately 653 kilometers.
It consists of commuter-railway operations between Tutuban and Calamba and long-haul railway operations between Tutuban and Legazpi, including extended long-haul rail operations on the branch line between Calamba and Batangas and extension between Legazpi and Matnog.
“The purpose of combining the high-revenue project, called the brownfield commuter line, with the riskier, greenfield long-haul line is for cross subsidy and better implementation,” Palacios said. “If we split them into two, the long-haul line may lack the driving force it needs for quicker implementation.”
Several companies have already expressed their interest in the deal, like Metro Pacific Investments Corp., Ayala Corp., Aboitiz Equity Ventures Inc. and San Miguel Corp.
Officials of these companies have repeatedly urged the government to hasten the bidding process for the railway line, as this is one of the priority projects that should be done immediately to address the growing congestion in Metro Manila and its neighboring cities and provinces.
But with only less than two months left before the country changes its chief executive, it seems that awarding the deal right away would be far from reality, considering the timelines of past tenders for key infrastructure deals.
Aside from splitting the deal into two, the DOTC has also proposed to increase the cost of the North-South Railway Project by nearly P100 billion to change the design of the rail tracks, and to fund the resettlement package for affected communities.
The transport agency sought for the change in track design to standard gauge from narrow gauge, as the former can accommodate faster speeds above the 160-kilometer-per-hour mark. A standard gauge is wider compared to the narrow gauge and, thus, would require more right-of-way.
However, according to a BusinessMirror source, changing the gauge tracks at this point would be “a waste of time and government resources,” as the government has already purchased materials such as slippers, and has even refurbished narrow-gauge trains donated to the Philippines.
The South Line is expected to be completed by 2019. It is part of a two-phase railway construction project supported by the Japanese government.
The other phase involves the construction of a 36.7-km narrow-gauge elevated commuter railway from Malolos, Bulacan, to Tutuban in Manila. It is seen to be completed by the third quarter of 2020. This project is implemented under an official development assistance package from the Japanese government.
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, 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 BusinessMirror earlier reported that infrastructure spending under the proposed Three-year Rolling Infrastructure Plan could reach as much as P1.07 trillion by 2019.
2 comments
k@gaguhan na naman ng DOTC
kaunting tiis na lang isang buwan na lang pilipinas kong mahal mawawala na sa pwesto si Abaya wag lang manalo yung dilaw