Tuesday, January 22, 2019

Philippines, Japan sign $1.54-billion loan deal on North-South Railway

The North-South Commuter Railway project will 'seamlessly' connect Philippine National Railways lines in Clark, Pampanga to Calamba, Laguna

The governments of Philippines and Japan signed an P80.47-billion ($1.54-billion) loan agreement on the 109-kilometer North-South Commuter Railway (NSCR) extension project, the biggest project so far under the infrastructure program "Build, Build, Build."

On Monday, January 21, Finance Secretary Carlos Dominguez III and Japan International Cooperation Agency (JICA) Director General Shigenori Ogawa signed the first tranche of the multibillion-peso loan deal at the Department of Finance.

The total cost of the project amounted to P628.42 billion ($12.03 billion). JICA and the Asian Development Bank will finance the total loan financing requirement at P488 billion ($9.34 billion).

The signing was witnessed by Public Works Secretary Mark Villar, Railways Undersecretary Timothy John Batan, and embassy of Japan Minister Atsushi Kuwabara.

Dominguez said on Monday that the economic benefits of improved mobility once the railway service is completed "will translate into many times over the cost of the project."

"This commuter rail service ought to have been built many years ago. This might have spared our harried commuters all the grief they bear now," Dominguez said.

"But previous governments did not have the fiscal space, did not have the enthusiasm of our international development partners and, most important, did not have the unyielding political will we benefit from today," he added.

Dominguez said that the NSCR project has the "fastest loan processing time" in the history of the Philippines-Japan cooperation.

In November 2018, the National Economic and Development Authority (NEDA) Board Investment Coordination Committee-Cabinet Committee (ICC-CabCom) approved the changes in scope of the 147-kilometer railway system, which included a 76% increase from the previous total costing estimate of P440.88 billion.

The increase in costing was due to a shift in engineering design, increase in the number of trains, and added costs that will cover resettlement activities for the 12,901 informal settler families.

The loan has a maturity period of 40 years, with a 12-year grace period. Non-consulting services under the agreement have an interest rate of 10 basis points per annum, and 1 basis point per annum for consulting services.

This is the second railway loan deal with Japan under the Duterte administration. JICA will also be financing the P18-billion Metro Rail Transit Line 3 (MRT3) rehabilitation.

Seamless commute

The railway will "seamlessly" integrate the Philippine National Railways (PNR) lines from Central Luzon to Calabarzon:

The 38-kilometer PNR Clark 1 from Tutuban, Manila to Malolos, Bulacan
The 58-kilometer PNR Clark 2 from Malolos, Bulacan to Clark International Airport, Pampanga
The 72-kilometer PNR Calamba running from Solis Street in Tondo, Manila to Los Banos, Laguna

The extension project covers PNR Clark 2 and PNR Calamba lines. Previously, the government had inked a $2.37-billion loan from Japan for the PNR Clark 1 deal in November 2015.

The railway system will also link existing railway lines – Light Rail Transit (LRT) lines 1 and 2, the MRT3, and the upcoming Metro Manila Subway.

Batan said that the NSCR "is more than just another railway," with less travel time from the provinces to Metro Manila.

"The NSCR is more than just another railway project, as it promises to deliver a new way of life to the millions of Filipinos that it will benefit," Batan said.

The Department of Transportation (DOTr) expects to have a ridership of 340,000 passengers a day when it partially operates in 2022. By 2023, DOTr expects a ridership of 550,000 passengers when it becomes fully operational.

Initially, the NSCR project was planned to be under a public-private partnership under the Aquino government.

The Duterte administration had called off the auction in 2016.

https://www.rappler.com/business/221610-philippines-japan-sign-loan-deal-north-south-railway

House panel questions route of Metro Manila Subway

A House panel is summoning the inter-agency committee that decided the route of the Metro Manila Subway, saying the chosen route was the costliest of three options.

The House Committee on Metro Manila Development said officials of the committee must explain why the Katipunan route was chosen despite being the "most expensive" and "most problematic" among the 3 routes studied for the project.

Caloocan City Rep. Edgar Erice pointed out that based on submissions of the Department of Transportation (DOTr), the Katipunan route requires a budget of P218 billion compared to P208 billion for the EDSA route and P211 billion for the Greenhills San Juan route.

The lawmaker also said the Katipunan route will affect more residential areas and require more space compared to the 2 other options.

“Mas malaki ang magagambala sa Katipunan, mas mahal, mas malaki (area required) sa Katipunan… mas malaki environmental impact, mas maraming tao maaapektuhan, mas mahal, pero mas pinili n’yo pa din ang Katipunan,” Erice said in a hearing, addressing DOTr Undersecretary for Railways, Atty. Timothy John Batan.

But Batan said the decision was based on the criteria set for the project, alongside the instruction guidelines by a Japan International Cooperation Agency (JICA) design team.

The inter-agency committee is composed of the secretaries of DOTr, Department of Public Works and Highways, National Economic and Development Authority, and the head of the Metro Manila Development Authority, among others.

The first phase will connect Mindanao Avenue to the Ninoy Aquino International Airport (NAIA), with 3 stations set to be operational by 2022, the Department of Finance earlier said. The central zone with 13 stations is expected to be operational by 2025.

https://news.abs-cbn.com/business/01/21/19/house-panel-questions-route-of-metro-manila-subway

Public transport mess and traffic congestion

My Cup Of Liberty
By Bienvenido S. Oplas, Jr.

There are many factors to frequent heavy traffic congestion in Metro Manila and other big cities in the provinces. This short article will narrow it down to five factors.

1. INCONVENIENT AND SOMETIMES UNSAFE PUBLIC TRANSPORTATION

People who live in many villages in Quezon City, Las PiƱas and other cities and going to the big commercial and business districts (CBDs) in Makati, Taguig/BGC or Mandaluyong/Ortigas, taking public transportation means multiple rides: (1) tricycle from house to main roads, (2) jeep or bus to train station, (3) MRT or LRT ride, and (4) jeep or long walk to office or meeting places. Going back home, up to eight rides and people are already very tired coming home.

Snatchers and other criminals, sexual molesters can occur in any of those rides or while walking between those six to eight rides. And it is worse during the rainy season.

The solution is to drive their cars or motorcycles. People would rather brave the heavy traffic plus expensive parking fees than endure those multiple rides. Or take transport network vehicle services (TNVS) like Grab or any of its nine competitors now, or a regular taxi.

Below are official data from the Land Transportation Office (LTO). The total registered vehicles include government, diplomatic and for hire vehicles (77,241; 2,837; and 970,427 respectively, in 2017).

There are so many motorcycles and tricycles, 6.2 million in 2017 and probably 7.4 million in 2018. But there are not too many buses, only 34.8 million in 2017.

There are many unregistered vehicles like the “colorum” jeepneys, taxi and buses, and unregistered motorcycles and tricycles like those used by many policemen who drive motorcycles with no plate.

Now there are many point-to-point (P2P) buses with more routes, true. But people still need to ride tricycles or TNVS, taxi, etc. from their house to the P2P bus stations, so some people would still prefer to drive their cars.

2. EXPENSIVE “JEEPNEY MODERNIZATION”

The noisy and often ugly tricycles and jeepneys will soon be replaced by e-trikes and e-jeeps. Silent, no direct pollution, cool. But their cost is high, up to P1.8 million for e-jeeps and P0.6 million for e-trikes. Charging stations are limited too. By November 2018, only about 1,000 e-jeepneys have rolled out, around 169,000 old jeepneys need to be replaced before the end of transition period in 2020. and

3. OLD MRT, UNUSED NEW TRAINS

In the first 40 days of 2018, the Department of Transportation (DoTr) recorded a total of 33 MRT3 glitches, with imperiled passengers having to walk on rail tracks to get off. In addition, only 8-9 trains were running per day in February vs the minimum target of 15 working trains per day. Then the Dalian trains, of which out of 48 unused trains in 2017, only two were deployed as of December 2018.

4. FAILED, DELAYED DOTR PROJECTS DUE TO POLICY CHANGES

The Commission on Audit (CoA) report for 2017 showed that DoTr was unable to fully implement P46.6 billion out of P58.9 billion of funded projects due to frequent policy changes by political leaders and economic managers. Affected were 153 out of 159 DoTr projects like the Cebu Bus Rapid Transit, LRT Line 2 east extension, and LRT Line 1 north extension common station.

5. BUREAUCRACIES IN TNVS

As this column has discussed in previous articles, there are lots of bureaucracies and requirements from the LTFRB before existing TNVS can expand, which reduces the supply of cars and drivers. And there are bureaucracies from the PCC before failing and losing TNVS and TNCs can exit the country. Even exiting from business can cost huge money, so potential big players from abroad would be hesitant to come and do business here.

The bigger the number of inconvenient public transportation like tricycles and jeepneys, the bigger the demand for private cars, which contributes to frequent traffic congestion. Even those “clean” e-trikes are still low-passenger tricycles. We need less of them, not more.

We need more modern public transportation like efficient MRT/LRT, aircon buses and vans, and reliable TNVS. These reduce the need for private car use. And these investments require less bureaucracy, permits and business taxes, not more.

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

https://www.bworldonline.com/public-transport-mess-and-traffic-congestion/