Transport projects get funding support
MANILA, Philippines — The Project Development and Monitoring Facility (PDMF) Committee, chaired by the National Economic and Development Authority, has approved the application for funding of the Department of Transportation for the provision of transaction advisory services for the unsolicited proposals for regional airports; the Air Traffic Services–Air Navigation Services ( ATS-ANS) project; and the rehabilitation, expansion, operations and maintenance (O&M) of the Light Rail Transit Line 2 (LRT-2), according to the Public-Private Partnership (PPP) Center.
“The transaction advisory services are proposed to be provided by the International Finance Corp. (IFC), a member of the World Bank Group, with extensive experience in PPPs in various sectors,” the PPP Center said.
Managed by the PPP Center, the PDMF is a revolving fund used to support services for the preparation, as well as implementation and monitoring of PPP projects.
It was established to enhance the investment environment for PPPs and develop viable and well-prepared PPP projects.
The unsolicited proposals for the regional airports include the upgrade, expansion, and O&M of the Bohol-Panglao, Laguindingan and Bicol International Airports to be undertaken by the private sector.
“PDMF will support the projects during the due diligence and detailed review of the unsolicited proposals, ICC (Investment Coordination Committee) review, negotiations for PPP contract, government final clearance of PPP agreement, or during the bid tender and PPP contract award phases,” the PPP Center said.
As for the ATS-ANS project, the PPP Center said the transaction advisory services would cover a gap analysis, preparation of business case, and market or stakeholder consultation.
The project involves the proposed financing, design, construction, modernization, upgrade, and O&M by the private sector of air traffic services and air navigation services facilities for the airspace managed by the Philippines.
It is expected to lead to more efficient routing of aircraft in the airspace managed by the country, increased capacity and improved quality of international and inter-regional air linkages, as well as greater access to economic zones and more options for exports.
For the proposed LRT-2 rehabilitation and O&M, the PPP Center said the approved transaction advisory support would explore the possible expansion of the rail system by three kilometers and addition of three stations to the west and to the east.
“The LRT project will be granted support covering due diligence of the project, assistance in securing the necessary government approvals, detailed structuring, marketing to potential investors, and assistance in the bidding process,” it said.
Under the project, the private sector will be responsible for the financing, design, construction, commissioning, and O&M of the expanded LRT-2.
The project is expected to reduce travel time, logistics costs, and road congestion, as well as provide alternative travel options.
In addition, it is expected to increase the connectivity of economic centers, reduce greenhouse gases and noise pollution from road vehicles, promote climate resilient transportation safety, raise land value, as well as enable easier access to government services.