By Leslie Gatpolintan
Diversified conglomerate San Miguel Corp. (SMC) targets to open a 20-km. portion of the Metro Rail Transit (MRT) Line 7 by end of 2021 amid right-of-way (ROW) issues hounding the project.
SMC president and chief operating officer Ramon Ang said the construction of the MRT project is in “full swing” despite some problems on ROW and train depot.
“But we have more or less sorted that out and have agreed with Secretary Tugade to initially open the first 20 km. by the end of 2021. And then, one year after, full operational,” he said during the conglomerate’s stockholders’ meeting on Tuesday.
The MRT 7 project is a 23-km. elevated railway line with 14 stations from San Jose del Monte, Bulacan to North Ave. in Quezon City.
Ang told reporters the 20-km. portion of the project stretches from the North Edsa MRT-LRT common station to Fairview in Quezon City.
“Maganda na yun, malaking bagay na yun (It will already have a huge impact). I think, yun ang malaking volume ng passenger (A huge volume of passengers is from these areas),” he added.
Meanwhile, Ang bared that the conglomerate would unveil an initial 800 megawatts (MW) in renewable energy projects early next year.
“By March 2020, isi-switch on ko na yon (I will switch-on these projects),” he said without elaborating.
Ang said they plan to add 1,000 MW of renewable energy projects in their portfolio over the next few years, including solar, wind and pumped hydro projects.
https://www.pna.gov.ph/articles/1072104
Tuesday, June 11, 2019
SMC: Skyway to extend to NLEX-Balintawak
An elevated road project that will substantially cut travel time in Metro Manila will even make it faster to access the North Luzon Express Way (NLEx), according to a diversified conglomerate.
In a stockholder's meeting Tuesday, San Miguel Corporation (SMC) President And CEO Ramon Ang said the Department of Public Works and Highways (DPWH) has approved their planned extension of the Metro Manila Skyway Stage 3 to connect to NLEx.
"We were allowed by DPWH to extend all the way to NLEX-Balintawak toll plaza. That extension will be another three months," Ang said.
He said this will shorten travel time from Alabang or Makati to the NLEX, and ease traffic on Epifanio de los Santos Avenue (EDSA).
"It will be very easy for commuters to travel from Alabang or Makati all the way to NLEX toll plaza in siguro (maybe) 15 minutes and I’m sure it will relieve at least 50% of vehicular traffic on EDSA," said Ang.
SMC targets completion of the Skyway Stage 3 in December. It would run from Bicutan in Taguig to Balintawak, Quezon City. Construction began in 2014.
https://cnnphilippines.com/business/2019/6/11/san-miguel-skyway-extension.html
In a stockholder's meeting Tuesday, San Miguel Corporation (SMC) President And CEO Ramon Ang said the Department of Public Works and Highways (DPWH) has approved their planned extension of the Metro Manila Skyway Stage 3 to connect to NLEx.
"We were allowed by DPWH to extend all the way to NLEX-Balintawak toll plaza. That extension will be another three months," Ang said.
He said this will shorten travel time from Alabang or Makati to the NLEX, and ease traffic on Epifanio de los Santos Avenue (EDSA).
"It will be very easy for commuters to travel from Alabang or Makati all the way to NLEX toll plaza in siguro (maybe) 15 minutes and I’m sure it will relieve at least 50% of vehicular traffic on EDSA," said Ang.
SMC targets completion of the Skyway Stage 3 in December. It would run from Bicutan in Taguig to Balintawak, Quezon City. Construction began in 2014.
https://cnnphilippines.com/business/2019/6/11/san-miguel-skyway-extension.html
Thursday, June 6, 2019
DOTr mulls expanded role for Japanese group repairing MRT 3
The Department of Transportation (DOTr) said it was possible for Japan-based firm Sumitomo to stay onboard as the Metro Rail Transit (MRT) 3’s maintenance service provider beyond the 43-month-long rehabilitation program for the train line.
Transport Undersecretary for Railways Timothy John Batan told reporters the DOTr was still studying whether Sumitomo could play a role in MRT 3’s “longer-term strategy” of operations and maintenance, even as it was considering Metro Pacific Investments Corp.’s (MPIC) unsolicited proposal to take over MRT 3 operations.
“We are still reviewing (MPIC’s) proposal even amid ongoing legal issues that we still have to resolve,” Batan said, referring to the arbitration case with Metro Rail Transit Corp. filed in 2009.
On Tuesday, the DOTr officially handed over the system operations and maintenance documents for the MRT 3 maintenance to Japanese consortium Sumitomo-Mitsubishi Heavy Industries-TESP, kicking off the rehabilitation.
The handover also marked Sumitomo’s official return as MRT 3 original maintenance provider after a series of short term maintenance providers, including BURI, took over from 2012 to 2017.
P20-B proposal
The MPIC had tried to bag the rehabilitation contract as part of a P20-billion proposal to repair, operate and maintain the MRT 3 for 30 years, with no fare hikes for at least two years.
The long-overdue project covers the entire 16.9-kilometer line, its 13 stations and Quezon City depot, and the original 72 light rail vehicles since the MRT 3 began operations in 1999.
It is partially funded by an P18-billion loan from Japan.
https://newsinfo.inquirer.net/1112783/dotr-mulls-expanded-role-for-japanese-group-repairing-mrt-3
Transport Undersecretary for Railways Timothy John Batan told reporters the DOTr was still studying whether Sumitomo could play a role in MRT 3’s “longer-term strategy” of operations and maintenance, even as it was considering Metro Pacific Investments Corp.’s (MPIC) unsolicited proposal to take over MRT 3 operations.
“We are still reviewing (MPIC’s) proposal even amid ongoing legal issues that we still have to resolve,” Batan said, referring to the arbitration case with Metro Rail Transit Corp. filed in 2009.
On Tuesday, the DOTr officially handed over the system operations and maintenance documents for the MRT 3 maintenance to Japanese consortium Sumitomo-Mitsubishi Heavy Industries-TESP, kicking off the rehabilitation.
The handover also marked Sumitomo’s official return as MRT 3 original maintenance provider after a series of short term maintenance providers, including BURI, took over from 2012 to 2017.
P20-B proposal
The MPIC had tried to bag the rehabilitation contract as part of a P20-billion proposal to repair, operate and maintain the MRT 3 for 30 years, with no fare hikes for at least two years.
The long-overdue project covers the entire 16.9-kilometer line, its 13 stations and Quezon City depot, and the original 72 light rail vehicles since the MRT 3 began operations in 1999.
It is partially funded by an P18-billion loan from Japan.
https://newsinfo.inquirer.net/1112783/dotr-mulls-expanded-role-for-japanese-group-repairing-mrt-3
Tuesday, June 4, 2019
LRT-1 finishes structural restoration works for passenger safety
The operator of LRT-1 said Tuesday it completed restoration of parapets or walls, river bridges and concrete structures to ensure the safety of passengers of the 35-year-old railway.
The parapets' concrete surfaces were sandblasted and repainted to remove corrosion. Noise barriers were also installed throughout the LRT-1's 20-kilometer stretch, Light Rail Manila said in a statement.
"LRT-1 has been here for 35 years. The project ensures that it will be here for the next 30," said LRMC president and CEO Juan F. Alfonso.
"The project completion strengthens our confidence in ensuring passenger safety," he said.
The restoration began in 2018, according to the LRMC statement. The LRT-1 is the capital's first and oldest elevated railway, stretching from Roosevelt in Quezon City to Baclaran in the southern city of Parañaque.
https://news.abs-cbn.com/business/06/04/19/lrt-1-finishes-structural-restoration-works-for-passenger-safety
The parapets' concrete surfaces were sandblasted and repainted to remove corrosion. Noise barriers were also installed throughout the LRT-1's 20-kilometer stretch, Light Rail Manila said in a statement.
"LRT-1 has been here for 35 years. The project ensures that it will be here for the next 30," said LRMC president and CEO Juan F. Alfonso.
"The project completion strengthens our confidence in ensuring passenger safety," he said.
The restoration began in 2018, according to the LRMC statement. The LRT-1 is the capital's first and oldest elevated railway, stretching from Roosevelt in Quezon City to Baclaran in the southern city of Parañaque.
https://news.abs-cbn.com/business/06/04/19/lrt-1-finishes-structural-restoration-works-for-passenger-safety
Monday, June 3, 2019
Arroyo confirms expansion of Iloilo Airport to start soon
By Tara Yap
ILOILO CITY – Speaker Gloria Macapagal-Arroyo confirmed that the Civil Aviation Authority of the Philippines (CAAP) has been given a green light to proceed with the expansion of the Iloilo Airport.
“It is one step closer to bringing comfort, safety and convenience to one of the country’s busiest airports,” Arroyo said.
While in Iloilo Thursday, Arroyo said the approval of the CAAP Board Resolution will be sent to the National Economic and Development Authority (NEDA) while CAAP can subject the proposal to a Swiss Challenge.
The airport, straddling the towns of Santa Barbara and Cabatuan, was built and opened during Arroyo’s presidency.
Arroyo said the airport’s expansion was much needed because it was originally designed to cater to 1.2 million passengers per year when it opened in 2007. The airport is now serving 2.4 million passengers per year.
Efren Nagrama, manager of Iloilo Airport, earlier explained that the P588-million expansion will cover the arrival, departure and check-in areas.
Arroyo played a pivotal role in facilitating the expansion project by conducting oversight hearings at the Lower House, which fast tracked the signing of CAAP’s Board Resolution.
https://news.mb.com.ph/2019/05/31/arroyo-confirms-expansion-of-iloilo-airport-to-start-soon/
ILOILO CITY – Speaker Gloria Macapagal-Arroyo confirmed that the Civil Aviation Authority of the Philippines (CAAP) has been given a green light to proceed with the expansion of the Iloilo Airport.
“It is one step closer to bringing comfort, safety and convenience to one of the country’s busiest airports,” Arroyo said.
While in Iloilo Thursday, Arroyo said the approval of the CAAP Board Resolution will be sent to the National Economic and Development Authority (NEDA) while CAAP can subject the proposal to a Swiss Challenge.
The airport, straddling the towns of Santa Barbara and Cabatuan, was built and opened during Arroyo’s presidency.
Arroyo said the airport’s expansion was much needed because it was originally designed to cater to 1.2 million passengers per year when it opened in 2007. The airport is now serving 2.4 million passengers per year.
Efren Nagrama, manager of Iloilo Airport, earlier explained that the P588-million expansion will cover the arrival, departure and check-in areas.
Arroyo played a pivotal role in facilitating the expansion project by conducting oversight hearings at the Lower House, which fast tracked the signing of CAAP’s Board Resolution.
https://news.mb.com.ph/2019/05/31/arroyo-confirms-expansion-of-iloilo-airport-to-start-soon/
Thursday, May 30, 2019
Clark railway’s right of way acquisition nearly complete
CITY OF SAN FERNANDO, Pampanga, Philippines — The Department of Transportation (DOTr) has secured 90.1 percent of the right of way (ROW) of six train stations scheduled to be built under Package 1 of the Philippine National Railways (PNR) Clark Phase 1.
Transportation Secretary Arthur Tugade last week said the department had already cleared 443,000 square meters of land for the first construction package.
The ROW of PNR Clark Phase 1 is 15 meters wide, or 7.5 meters on each side, according to Transportation Assistant Secretary for Communications Goddes Hope Libiran.
Phase 1 spans 37.6 kilometers from Tutuban in Manila to the City of Malolos in Bulacan province. Phase 2 heads to Clark International Airport at Clark Freeport in Pampanga province.
Matter of time
Tugade said it was only “a matter of time” that the remaining 9.9 percent of Package 1 would be cleared.
The ROW balance consists of 25,491.84 sq m, or 5.2 percent land; 10,743.25 sq m, or 2.2 percent utilities; 8,524.315 sq m, or 1.7 percent of PNR and Northrail piers; and 3,551.351 sq m, or 0.7 percent structures by informal and legal settlers.
These sites are found in various parts of Manila and Bulacan, Libiran said.
Package 1 entails the construction of elevated structures, a depot in Valenzuela City and six train stations in Tondo, Manila; Caloocan and Valenzuela cities; and Meycauayan City, and Marilao and Bocaue towns in Bulacan.
The joint venture of Taisei Corp. and D.M. Consunji won the contract to build Package 1 of Phase 1.
Shorter trip
Sumitomo-Mitsui is the general contractor of Package 2, which began in February. It is constructing three stations in Balagtas and Guiguinto towns, and in Malolos.
The PNR Clark Phase 1 aims to cut travel time to Manila from 1.5 hours to 30 minutes and is expected to be operational before the end of 2021.
Funded by a loan from Japan’s official development assistance, the project is part of the North-South Commuter Railway project that integrates Metro Manila, Central Luzon and Calabarzon regions, the DOTr said.
The south line is called PNR Calamba, running from Manila to Laguna.
https://newsinfo.inquirer.net/1124809/clark-railways-right-of-way-acquisition-nearly-complete
Transportation Secretary Arthur Tugade last week said the department had already cleared 443,000 square meters of land for the first construction package.
The ROW of PNR Clark Phase 1 is 15 meters wide, or 7.5 meters on each side, according to Transportation Assistant Secretary for Communications Goddes Hope Libiran.
Phase 1 spans 37.6 kilometers from Tutuban in Manila to the City of Malolos in Bulacan province. Phase 2 heads to Clark International Airport at Clark Freeport in Pampanga province.
Matter of time
Tugade said it was only “a matter of time” that the remaining 9.9 percent of Package 1 would be cleared.
The ROW balance consists of 25,491.84 sq m, or 5.2 percent land; 10,743.25 sq m, or 2.2 percent utilities; 8,524.315 sq m, or 1.7 percent of PNR and Northrail piers; and 3,551.351 sq m, or 0.7 percent structures by informal and legal settlers.
These sites are found in various parts of Manila and Bulacan, Libiran said.
Package 1 entails the construction of elevated structures, a depot in Valenzuela City and six train stations in Tondo, Manila; Caloocan and Valenzuela cities; and Meycauayan City, and Marilao and Bocaue towns in Bulacan.
The joint venture of Taisei Corp. and D.M. Consunji won the contract to build Package 1 of Phase 1.
Shorter trip
Sumitomo-Mitsui is the general contractor of Package 2, which began in February. It is constructing three stations in Balagtas and Guiguinto towns, and in Malolos.
The PNR Clark Phase 1 aims to cut travel time to Manila from 1.5 hours to 30 minutes and is expected to be operational before the end of 2021.
Funded by a loan from Japan’s official development assistance, the project is part of the North-South Commuter Railway project that integrates Metro Manila, Central Luzon and Calabarzon regions, the DOTr said.
The south line is called PNR Calamba, running from Manila to Laguna.
https://newsinfo.inquirer.net/1124809/clark-railways-right-of-way-acquisition-nearly-complete
Wednesday, May 29, 2019
Gov’t to award Bicol rail project in 4th quarter
The Department of Transportation (DOTr) plans to award the construction packages for a long-haul railway line that will link Metro Manila to Bicol province south of Luzon by the fourth quarter of this year.
Timothy John Batan, transportation undersecretary for railways, said the 639-kilometer railway line to be funded by the Chinese government was on track for actual procurement in the coming weeks.
Partially operational
The train line, formally known as the Philippine National Railways (PNR) South Long-Haul Project, will cost around P175 billion, making it one of the biggest under the administration’s “Build, Build, Build” infrastructure program.
Batan said the bidding terms of reference were currently being prepared by China Railway Design Corp., the project management consultant. The National Economic and Development Authority (Neda) board previously approved the financing of the PNR Bicol Project through official development assistance (ODA) from the government of China.
“The good thing in the commitment of the Chinese government is the eventual contractor will not wait for the loan agreement to be signed before they start working,” Batan said.
The DOTr earlier announced that the PNR to Bicol line would be partially operational before President Duterte steps down in 2022.
Upon completion, the PNR Bicol Project will connect Metro Manila, Region IV-A (Calabarzon) and Region V (Bicol), reducing travel time from Manila to Legazpi City from 13 hours to under 6 hours.
The PNR South Long Haul was previously listed among the Aquino III administration’s pipeline of Public-Private Partnership (PPP) projects. Its funding was then shifted to ODA loans under Mr. Duterte.
Mindanao railway project
The Chinese government is also expected to fund a significant portion of the 1,500-km Mindanao railway project, which will connect Davao, Iligan, Cagayan de Oro, General Santos and Zamboanga.
The first phase of the Mindanao railway project is a P35-billion section that will run about 100 km through Tagum, Davao and Digos.
https://business.inquirer.net/271516/govt-to-award-bicol-rail-project-in-4th-quarter
Timothy John Batan, transportation undersecretary for railways, said the 639-kilometer railway line to be funded by the Chinese government was on track for actual procurement in the coming weeks.
Partially operational
The train line, formally known as the Philippine National Railways (PNR) South Long-Haul Project, will cost around P175 billion, making it one of the biggest under the administration’s “Build, Build, Build” infrastructure program.
Batan said the bidding terms of reference were currently being prepared by China Railway Design Corp., the project management consultant. The National Economic and Development Authority (Neda) board previously approved the financing of the PNR Bicol Project through official development assistance (ODA) from the government of China.
“The good thing in the commitment of the Chinese government is the eventual contractor will not wait for the loan agreement to be signed before they start working,” Batan said.
The DOTr earlier announced that the PNR to Bicol line would be partially operational before President Duterte steps down in 2022.
Upon completion, the PNR Bicol Project will connect Metro Manila, Region IV-A (Calabarzon) and Region V (Bicol), reducing travel time from Manila to Legazpi City from 13 hours to under 6 hours.
The PNR South Long Haul was previously listed among the Aquino III administration’s pipeline of Public-Private Partnership (PPP) projects. Its funding was then shifted to ODA loans under Mr. Duterte.
Mindanao railway project
The Chinese government is also expected to fund a significant portion of the 1,500-km Mindanao railway project, which will connect Davao, Iligan, Cagayan de Oro, General Santos and Zamboanga.
The first phase of the Mindanao railway project is a P35-billion section that will run about 100 km through Tagum, Davao and Digos.
https://business.inquirer.net/271516/govt-to-award-bicol-rail-project-in-4th-quarter
Tuesday, May 28, 2019
Tracking government projects
IN this digital age, information can be transmitted from one person to another in an instant, with a few presses and clicks on the screen of a gadget; that same information can be shared by practically everyone in the planet who has access to the internet.
The government therefore serves the public well by uploading readily accessible information about the so-called “big ticket” projects under its “Build Build Build” (BBB) program by maintaining a website at build.gov.ph. Anyone, especially the Filipino taxpayers, who wishes to track the progress of these projects can do so by simply browsing the pages of that website.
The other day I read that the Asian Development Bank (ADB) has just approved a loan for the 53.1-kilometer Malolos-Clark Railway project in the amount of $2.7 billion. This reportedly was the biggest loan package the bank has ever extended for any single project.
Implemented by the Department of Transportation, this project is part of the bigger P149-billion North-South Commuter Railway (NSCR) project which was started in 2013. The BBB website summarizes its project description as “a 147 km. mass transportation railway system traversing Clark, Pampanga (Region 3), and Calamba, Laguna (Region 4). It has 3 interconnected railway systems: 1) the PNR Clark Phase 1; 2) The PNR Clark Phase 2; and 3) PNR Calamba. The total cost is P777.551 billion. The PNR Clark Phase 1 involves the construction of a 37.6-km rail line that will connect Tutuban, Manila to Malolos, Bulacan. With this line, commuters from Tutuban will reach Malolos in approximately 35 minutes, from over 1 and 30 minutes of travel time. It can accommodate 300,000 passengers daily in its opening year.”
There is a bar graph that shows the progress of project implementation, from project development, to procurement, to project implementation (meaning, construction). Sub bar graphs for each milestone show that project development progress is at zero percent; procurement at zero percent; and project implementation progress is also at zero percent.
Right there one finds that the website is deficient. It needs regular updating. For a project that started six years ago (in the middle of the Aquino administration), zero progress in at least the initial stages of project development and procurement cannot be, in my view, an accurate accounting. Surely a project cannot get ADB approval without sufficient project development documentation.
Project development, includes, at the minimum, pre-feasibility and/or feasibility studies, resettlement plan (for those who will be displaced), environment plan, right-of-way financing, procurement plan, organizational structuring, sustainability and operational and maintenance plan, and financing/loan documentation. All of these studies go through rigorous, sometimes contentious, discussion and analyses, which largely explain why government projects take time to get done.
Adequate documentation of consultative processes involving stakeholders is vital during the early stages of project development, especially with the size and scope of BBB projects. How are the population being displaced by these projects going to cope with livelihood? What will mitigate the destruction of the ecosystem if project sites are within mangrove areas, for example? Answers to these questions are some of the basic information, among many others, that the BBB website should make readily available for the public to access.
On procurement, citizens would appreciate being given the ability to browse or download documentation of each step being undertaken within the entire bidding process. Procurement consists of mandatory steps, such as planning, pre-procurement conference; issuance of procurement notices; pre-bid conference; submission, examination and evaluation of bids; post-evaluation qualification; then finally notice of award and notice to proceed.
Procurement planning, at which stage project cost is determined, is crucial for establishing the conditions that will either enable or disable irregularities to happen during the course of project implementation. Here project proponents determine unit costs for each project component. Overpricing by a few centavos for each unit of material, for example, means millions of pesos can be lost to corruption if the total cost runs into billions of pesos. At some point after the evaluation of bids, observers can also tell if collusion among bidders took place, indicating that the purpose of getting the best value for money through competition has been compromised.
Many studies have shown that up to 40 percent of public funds are lost due to corruption. Most of these leaks happen during procurement and contract execution.
And yet, if done properly, government procurement can provide the most efficient process by which public funds are converted into goods and services that can eventually benefit the people. Some experts even argue that government projects that go through procurement are in the long run less costly, from the viewpoint of the taxpaying public, than those that apply private-public partnership (PPP)methods of financing. That’s because while PPPs can mobilize private funds for public goods, they also promote private gain more than they ease public pain.
https://www.manilatimes.net/tracking-government-projects/561321/
The government therefore serves the public well by uploading readily accessible information about the so-called “big ticket” projects under its “Build Build Build” (BBB) program by maintaining a website at build.gov.ph. Anyone, especially the Filipino taxpayers, who wishes to track the progress of these projects can do so by simply browsing the pages of that website.
The other day I read that the Asian Development Bank (ADB) has just approved a loan for the 53.1-kilometer Malolos-Clark Railway project in the amount of $2.7 billion. This reportedly was the biggest loan package the bank has ever extended for any single project.
Implemented by the Department of Transportation, this project is part of the bigger P149-billion North-South Commuter Railway (NSCR) project which was started in 2013. The BBB website summarizes its project description as “a 147 km. mass transportation railway system traversing Clark, Pampanga (Region 3), and Calamba, Laguna (Region 4). It has 3 interconnected railway systems: 1) the PNR Clark Phase 1; 2) The PNR Clark Phase 2; and 3) PNR Calamba. The total cost is P777.551 billion. The PNR Clark Phase 1 involves the construction of a 37.6-km rail line that will connect Tutuban, Manila to Malolos, Bulacan. With this line, commuters from Tutuban will reach Malolos in approximately 35 minutes, from over 1 and 30 minutes of travel time. It can accommodate 300,000 passengers daily in its opening year.”
There is a bar graph that shows the progress of project implementation, from project development, to procurement, to project implementation (meaning, construction). Sub bar graphs for each milestone show that project development progress is at zero percent; procurement at zero percent; and project implementation progress is also at zero percent.
Right there one finds that the website is deficient. It needs regular updating. For a project that started six years ago (in the middle of the Aquino administration), zero progress in at least the initial stages of project development and procurement cannot be, in my view, an accurate accounting. Surely a project cannot get ADB approval without sufficient project development documentation.
Project development, includes, at the minimum, pre-feasibility and/or feasibility studies, resettlement plan (for those who will be displaced), environment plan, right-of-way financing, procurement plan, organizational structuring, sustainability and operational and maintenance plan, and financing/loan documentation. All of these studies go through rigorous, sometimes contentious, discussion and analyses, which largely explain why government projects take time to get done.
Adequate documentation of consultative processes involving stakeholders is vital during the early stages of project development, especially with the size and scope of BBB projects. How are the population being displaced by these projects going to cope with livelihood? What will mitigate the destruction of the ecosystem if project sites are within mangrove areas, for example? Answers to these questions are some of the basic information, among many others, that the BBB website should make readily available for the public to access.
On procurement, citizens would appreciate being given the ability to browse or download documentation of each step being undertaken within the entire bidding process. Procurement consists of mandatory steps, such as planning, pre-procurement conference; issuance of procurement notices; pre-bid conference; submission, examination and evaluation of bids; post-evaluation qualification; then finally notice of award and notice to proceed.
Procurement planning, at which stage project cost is determined, is crucial for establishing the conditions that will either enable or disable irregularities to happen during the course of project implementation. Here project proponents determine unit costs for each project component. Overpricing by a few centavos for each unit of material, for example, means millions of pesos can be lost to corruption if the total cost runs into billions of pesos. At some point after the evaluation of bids, observers can also tell if collusion among bidders took place, indicating that the purpose of getting the best value for money through competition has been compromised.
Many studies have shown that up to 40 percent of public funds are lost due to corruption. Most of these leaks happen during procurement and contract execution.
And yet, if done properly, government procurement can provide the most efficient process by which public funds are converted into goods and services that can eventually benefit the people. Some experts even argue that government projects that go through procurement are in the long run less costly, from the viewpoint of the taxpaying public, than those that apply private-public partnership (PPP)methods of financing. That’s because while PPPs can mobilize private funds for public goods, they also promote private gain more than they ease public pain.
https://www.manilatimes.net/tracking-government-projects/561321/
Sunday, May 26, 2019
DMCI sets P2-billion capex for rail project
By James A. Loyola
Infrastructure developer D.M. Consunji, Inc. (DMCI) is earmarking P2 billion in capital expenditures (capex)for the next two years to support its railway construction activities under Phase 1 of the North South Commuter Railway (NSCR) project.
In a press briefing, DMCI President Jorge Consunji said the bulk of the P2- billion capex will be used to acquire construction equipment.
DMCI will also employ up to 5,000 direct and indirect workers within the next 30 months to meet the manpower requirements of the project.
“Building mass transport systems and high-impact infrastructure is part of our DNA. We are very excited and grateful to be part of this game-changing project for our country,” said Consunji.
The Department of Transportation recently awarded the NSCR Phase 1 contract to the joint venture of DMCI and Taisei Corporation of Japan.
The project has a total contract value of 114 billion yen or approximately P54 billion based on prevailing exchange rates.
It involves the construction of around 22 kilometers of elevated viaduct structures, six stations and a depot, which will be located in Valenzuela.
Designed to be completed in 42 months, NSCR Phase 1 will use the existing alignment of the Philippine National Railway (PNR), which runs from Malolos, Bulacan to Tutuban in Manila. The trains will have the maximum operating speed of 120 kilometers per hour.
Once completed, the railway will shorten travel time between Malolos and Tutuban from one hour and 30 minutes to just 35 minutes. This rail line is expected to serve 300,000 passengers daily.
NSCR Phase 1 is the 5th railway project of DMCI. The company was also involved in the construction of LRT Line 1 North Extension, LRT Line 2 East Extension, two PNR projects and the Dubai Monorail in the United Arab Emirates.
Taisei Corporation is the contractor behind the Iloilo International Airport, which was named the 12thbest airport in Asia in 2017 by travel website “The Guide to Sleeping in Airports.”
https://business.mb.com.ph/2019/05/25/dmci-sets-p2-billion-capex-for-rail-project/
Infrastructure developer D.M. Consunji, Inc. (DMCI) is earmarking P2 billion in capital expenditures (capex)for the next two years to support its railway construction activities under Phase 1 of the North South Commuter Railway (NSCR) project.
In a press briefing, DMCI President Jorge Consunji said the bulk of the P2- billion capex will be used to acquire construction equipment.
DMCI will also employ up to 5,000 direct and indirect workers within the next 30 months to meet the manpower requirements of the project.
“Building mass transport systems and high-impact infrastructure is part of our DNA. We are very excited and grateful to be part of this game-changing project for our country,” said Consunji.
The Department of Transportation recently awarded the NSCR Phase 1 contract to the joint venture of DMCI and Taisei Corporation of Japan.
The project has a total contract value of 114 billion yen or approximately P54 billion based on prevailing exchange rates.
It involves the construction of around 22 kilometers of elevated viaduct structures, six stations and a depot, which will be located in Valenzuela.
Designed to be completed in 42 months, NSCR Phase 1 will use the existing alignment of the Philippine National Railway (PNR), which runs from Malolos, Bulacan to Tutuban in Manila. The trains will have the maximum operating speed of 120 kilometers per hour.
Once completed, the railway will shorten travel time between Malolos and Tutuban from one hour and 30 minutes to just 35 minutes. This rail line is expected to serve 300,000 passengers daily.
NSCR Phase 1 is the 5th railway project of DMCI. The company was also involved in the construction of LRT Line 1 North Extension, LRT Line 2 East Extension, two PNR projects and the Dubai Monorail in the United Arab Emirates.
Taisei Corporation is the contractor behind the Iloilo International Airport, which was named the 12thbest airport in Asia in 2017 by travel website “The Guide to Sleeping in Airports.”
https://business.mb.com.ph/2019/05/25/dmci-sets-p2-billion-capex-for-rail-project/
Friday, May 24, 2019
ADB okays $2.75-B financing for PNR Clark railway
By Chino S. Leyco
The Asian Development Bank (ADB) announced yesterday the approval of its largest infrastructure financing project in history that will fund the construction of a passenger railway system connecting Malolos, Bulacan and Clark, Pampanga.
In a statement, the multi-lateral institution said that it will provide a financing of up to $2.75 billion for the development of a 53.1 kilometer railway in the suburb north of Manila, which would connect the area to Clark economic zone and Clark International Airport.
The Malolos-Clark railway is part of the Philippine government’s North-South Commuter Railway (NSCR) project, a 163-km suburban railway network stretching from New Clark City, Tarlac to Calamba, Laguna and is expected to be completed by 2025.
“The Malolos-Clark Railway Project will provide safe, reliable, and affordable public transport for a total of about 342,000 passengers expected to travel daily along the Manila-Clark corridor and up to 696,000 passengers per day to Calamba by 2025,” ADB said.
Once completed, the railway is estimated to cut the travel time from Metro Manila to Clark International Airport to less than one hour by rail, compared with the current two to three hours by car or bus. The project is expected to be partially operational from 2022.
The Malolos-Clark Railway Project also aims to ease today’s chronic road congestion in Metro Manila, reduce air pollution, cut the costs of transport and logistics, spur economic growth in central Luzon, and encourage a population shift from the capital to growth centers in the north, such as Clark in Pampanga.
“ADB’s partnership with the Philippines has always been strong, and it has become stronger in the last three years,” Takehiko Nakao, ADB president said.
“The government’s Build, Build, Build (BBB) program is clearly steering the much-needed acceleration in infrastructure spending, from less than 2 percent of gross domestic product a decade ago to 6.3 percent now, well on track to achieve the 7 percent target by 2022. One of the key flagship projects of the BBB program is the Malolos-Clark railway,” Nakao said.
The Malolos-Clark railway will be ADB’s single largest infrastructure project financing ever from a development perspective.
Nakao said they are pleased that the bank’s biggest investment is taking place in ADB’s host country.
“The project, combined with other investments in light rail transit, metro rail transit, and subway systems, will bring back the culture of rail transport in Metro Manila,” Nakao said.
ADB’s 2018-2023 Country Partnership Strategy for the Philippines envisages significant and wide-ranging support for the BBB program, among other critical investments in education, financial inclusion, and economic policy reforms.
ADB will be financing civil works of the Malolos-Clark Railway Project, including the stations, bridges, and viaducts for the elevated railway alignment, and a tunnel leading to the underground station at Clark International Airport.
It will also assist the government in using global standards for procurement and environmental and resettlement safeguards.
The project is co-financed with up to $2 billion by the Japan International Cooperation Agency (JICA), which will finance the rolling stock and the railway systems.
“Our co-financing partnership with JICA allows both our institutions to combine our expertise and knowledge in building a world-class railway in the Philippines,” Markus Roesner, ADB principal transport specialist for Southeast Asia said.
The project includes the construction of two rail segments — a 51.2-km section connecting Malolos City in Bulacan province to the thriving Clark regional growth center and a 1.9-km extension connecting the NSCR to the Blumentritt Station in Manila, where an elevated interchange station for Light Rail Transit Line 1 will be built.
The rail stations will include multimodal facilities, allowing commuters to easily transfer from public buses and jeepneys to the trains. The underground station at the Clark International Airport will provide a short connection to upcoming and future airport terminals.
The project will be built on an elevated alignment, helping reduce the impact on communities, avoid disruption of activities, and mitigate flood risks along the route.
It will use innovative construction methods such as pre-fabricated viaduct segments, which limits the need for land acquisition and accelerates construction. High-quality construction methods will be used to achieve the maximum rail speed of up to 160 km per hour.
https://business.mb.com.ph/2019/05/23/adb-okays-2-75-b-financing-for-pnr-clark-railway/
The Asian Development Bank (ADB) announced yesterday the approval of its largest infrastructure financing project in history that will fund the construction of a passenger railway system connecting Malolos, Bulacan and Clark, Pampanga.
In a statement, the multi-lateral institution said that it will provide a financing of up to $2.75 billion for the development of a 53.1 kilometer railway in the suburb north of Manila, which would connect the area to Clark economic zone and Clark International Airport.
The Malolos-Clark railway is part of the Philippine government’s North-South Commuter Railway (NSCR) project, a 163-km suburban railway network stretching from New Clark City, Tarlac to Calamba, Laguna and is expected to be completed by 2025.
“The Malolos-Clark Railway Project will provide safe, reliable, and affordable public transport for a total of about 342,000 passengers expected to travel daily along the Manila-Clark corridor and up to 696,000 passengers per day to Calamba by 2025,” ADB said.
Once completed, the railway is estimated to cut the travel time from Metro Manila to Clark International Airport to less than one hour by rail, compared with the current two to three hours by car or bus. The project is expected to be partially operational from 2022.
The Malolos-Clark Railway Project also aims to ease today’s chronic road congestion in Metro Manila, reduce air pollution, cut the costs of transport and logistics, spur economic growth in central Luzon, and encourage a population shift from the capital to growth centers in the north, such as Clark in Pampanga.
“ADB’s partnership with the Philippines has always been strong, and it has become stronger in the last three years,” Takehiko Nakao, ADB president said.
“The government’s Build, Build, Build (BBB) program is clearly steering the much-needed acceleration in infrastructure spending, from less than 2 percent of gross domestic product a decade ago to 6.3 percent now, well on track to achieve the 7 percent target by 2022. One of the key flagship projects of the BBB program is the Malolos-Clark railway,” Nakao said.
The Malolos-Clark railway will be ADB’s single largest infrastructure project financing ever from a development perspective.
Nakao said they are pleased that the bank’s biggest investment is taking place in ADB’s host country.
“The project, combined with other investments in light rail transit, metro rail transit, and subway systems, will bring back the culture of rail transport in Metro Manila,” Nakao said.
ADB’s 2018-2023 Country Partnership Strategy for the Philippines envisages significant and wide-ranging support for the BBB program, among other critical investments in education, financial inclusion, and economic policy reforms.
ADB will be financing civil works of the Malolos-Clark Railway Project, including the stations, bridges, and viaducts for the elevated railway alignment, and a tunnel leading to the underground station at Clark International Airport.
It will also assist the government in using global standards for procurement and environmental and resettlement safeguards.
The project is co-financed with up to $2 billion by the Japan International Cooperation Agency (JICA), which will finance the rolling stock and the railway systems.
“Our co-financing partnership with JICA allows both our institutions to combine our expertise and knowledge in building a world-class railway in the Philippines,” Markus Roesner, ADB principal transport specialist for Southeast Asia said.
The project includes the construction of two rail segments — a 51.2-km section connecting Malolos City in Bulacan province to the thriving Clark regional growth center and a 1.9-km extension connecting the NSCR to the Blumentritt Station in Manila, where an elevated interchange station for Light Rail Transit Line 1 will be built.
The rail stations will include multimodal facilities, allowing commuters to easily transfer from public buses and jeepneys to the trains. The underground station at the Clark International Airport will provide a short connection to upcoming and future airport terminals.
The project will be built on an elevated alignment, helping reduce the impact on communities, avoid disruption of activities, and mitigate flood risks along the route.
It will use innovative construction methods such as pre-fabricated viaduct segments, which limits the need for land acquisition and accelerates construction. High-quality construction methods will be used to achieve the maximum rail speed of up to 160 km per hour.
https://business.mb.com.ph/2019/05/23/adb-okays-2-75-b-financing-for-pnr-clark-railway/
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