The Department of Transportation (DOTr) on Wednesday said several private firms based in Singapore and other countries have expressed strong interest in investing in the Philippines’ expanding railway sector.
The announcement followed a recent on-site market sounding activity held in Singapore, organized by the DOTr together with the Asian Development Bank (ADB), Infrastructure Asia (InfraAsia), and the International Finance Corporation (IFC).
The event centered on public-private partnership (PPP) opportunities, particularly the Metro Rail Transit Line 3 Operations and Maintenance (MRT3 O&M) Project, the Light Rail Transit Line 2 Rehabilitation, Operations, and Maintenance (LRT2 ROM) Project, and the Metro Manila Subway Operations and Maintenance (MMS O&M) Project.
“Efficient mass transportation is fundamental to the quality of life of every Filipino. By partnering with the private sector, we can build the railway system our people rightfully deserve and fulfill the President’s vision of a modern, connected Philippines,” Transportation Secretary Giovanni Lopez said.
During the market sounding activity, DOTr Undersecretary for Railways Timothy John Batan noted that the Philippines lags behind its Association of Southeast Asian Nations (ASEAN) neighbors in railway length per million people.
“The massive gap we face is particularly magnified in rail infrastructure. This is not because the Philippines lacks the need for rail. The demand for mass transit in our congested capital [Metro Manila] is overwhelming. The gap between where we are and where we need to be is not a matter of demand. It is a matter of investment and delivery,” Batan said.
He said greater participation through PPPs in the railway sector could help transform the country’s transport system.
“Closing even a part of this rail density gap represents one of the largest infrastructure investment opportunities in Southeast Asia,” he added.
Batan cited ongoing projects aimed at serving millions of commuters, including the Metro Manila Subway Project (MMSP), the North-South Commuter Railway (NSCR), and the Japan International Cooperation Agency (JICA)- and Asian Development Bank (ADB)-supported 30-year Railway Master Plan for the Greater Capital Region.
The DOTr said the Philippines is entering a critical phase in its railway development program and encouraged private sector participation in long-term infrastructure projects.
“The Philippines is at a critical point in its infrastructure journey. We are finally seeing long-standing plans become operational systems, and we are committed to doing it right,” Lopez said.