The Government of the Philippines’ Department of Transportation (DOTr) has appointed the Asian Development Bank (ADB) as the transaction advisor for three priority transport infrastructure projects: the Philippine Automated Fare Collection System (PAFCS) Project, the Metro Rail Transit Line 3 (MRT-3) Operations and Maintenance (O&M) Project, and the Davao Public Transport Modernisation (DPTM) O&M Project.
The Public-Private Partnership Center (PPP Center) of the Philippines, the nodal agency for all PPP projects in the country, will support these projects through the Project Development and Monitoring Facility (PMDF). The PMDF, a revolving fund managed by the PPP Center, will finance the project preparation, structuring, and procurement of these projects. The ADB, through its Office of Markets Development and Public–Private Partnership (OMDP), will assist the DOTr in project preparation, structuring, and implementation.
ADB will assist DOTr in appointing a private partner for the PAFCS Project, which aims to establish a nationwide cashless, open, multimodal, and interoperable automated fare collection (AFC) system across all urban public transport systems. Initially, it will be implemented on government-owned rail lines.
ADB will support DOTr in appointing a rail operator to rehabilitate, operate, and maintain Manila MRT Line 3 under the MRT-3 O&M Project. The project aims to improve the efficiency and reliability of the urban rail line. Currently, DOTr operates the line and the maintenance is provided by Sumitomo Corporation and Mitsubishi Heavy Industries Ltd. under a contract expiring in 2025. MRT-3 spans around 17 km and covers 13 stations. In 2023, it had a ridership of over 129 million passengers.
ADB will assist DOTr in engaging an operator for a high-priority bus transport system being developed in Davao City, the third largest city in the country, under the DPTM O&M Project. The operator will also be responsible for developing and operating an intelligent transport system and the fare collection system.
ADB has approved plans to provide USD1 billion through a loan for the DPTM O&M Project, ADB’s largest road-based public transport project in the Philippines. The project aims to develop a modern public bus transport system in Davao, involving the deployment of 1,100 electric and Euro-5 diesel buses, as well as the construction of around 1,000 bus stops, five bus depots, and three bus terminals.