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  2. (AP3F046-PP017) Operation and Maintenance for the Metro Manila Subway Project
(AP3F046-PP017) Operation and Maintenance for the Metro Manila Subway Project
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COUNTRY:
Philippines
TA AMOUNT:
$1,000,000
TYPE OF ASSISTANCE:
Project Preparation
PROJECT STATUS:
Active
Beneficiaries
The beneficiaries are the residents of Metro Manila and the rest of Luzon Island
Background

The Philippine Development Plan 2017-2022 (PDP) has identified an underdeveloped transport system as one of the roadblocks to the country’s development. Rehabilitation and enhancement of the country’s railway system through a qualified O&M contractor, that can improve the railway system’s overall planning, management, operations, asset control and warehousing, has been identified as one of the key targets of the infrastructure sector.

Currently, there are two on-going railway projects:  the North-South Commuter Railway Project (NSCR) and the Metro Manila Subway Project. DOTr is the executing agency responsible for the delivery of both projects while the Operation and Maintenance (O&M) will be carried out through a PPP modality. This support is to provide assistance for the PPP contract for the operation and maintenance of the completed Metro Manila Subway.

 When completed, the subway will be a 30km electrified standard gauge subway with twin tunnels with a diameter of ~6.8m. There will be 16 underground stations, 30 trains, and a depot in Valenzuela City. The signaling system is Communications-based Train Control (CBTC) with Automatic Train Protection (ATP), Computer Based Interlocking (CBI), Automatic Train Operation (ATO), and Automatic Train Supervision (ATS) systems.

Key Activities

Capacity Building

  1. Assist in the preparation and training of DOTr staff for its future role as administrator of the subway O&M contract, specifically for project management capabilities, including development of contract implementation and monitoring tools and procedures

Project Preparation

  1. Assistance in the procurement of private operator under the subway O&M contract via solicited tender
  2. Work along side consultants of DOTr, such as Ove Arup to over see the EPC packages
  3. Assistance in preparing a Business Case for the project, which is a document required by the Government’s approving body, and conduct a market sounding as part of the development of the Business Case
  4. Assistance in the tender process, which involves drafting of tender documents including
  5. The subway O&M contract, conducting the tender process, and negotiating with bidders, until the O&M contract is signed

Project Performance Monitoring

  1. Providing assistance and advice during the process of handover of project assets from DOTr to the operator under the O&M contract
  2. Identification of DOTr deliverables under the subway O&M contract that are at risk of delay and/or non-fulfillment
  3. Assessment of operational performance of the operator vis-à-vis the agreed KPIs
  4. Administrative support to the project management units of DOTr to put in place proper
  5. PPP project performance monitoring mechanisms Prepare broad estimates of the PPP Project’s  revenues expected to be generated by DHP in long-term based on the PPA tariff, and assess associated operating cost and develop a financial model to determine financial feasibility
  6. Conduct a seminar for DABS and other GoIRA executives covering findings of the DHP project definition, contractual and financial structuring issues, recommendations and action plan on how to solve them
Expected Outcomes

By 2022, the private sector partner receives the notice to proceed from the Government under the subway Operation and Maintenance contract