PPP Center
Press Release
December 17, 2012

Passengers taking the LRT and MRT can expect better train commuting service after the Department of Transportation and Communications (DOTC) rolls out its Automatic Fare Collection System (AFCS) project under the Public-Private Partnership (PPP) Program of the government.

The AFCS’s Invitation to Prequalify and Bid (ITPB) was issued today, making this the 6th PPP project successfully rolled out this year. The AFCS aims to implement a single ticketing system for LRT-1, LRT-2, and MRT-3 to facilitate efficient passenger transfer to other rail lines, and reduce the long queues. The project also addresses outdated technology concerns of both MRT-3 and LRT-1 fare ticketing system, and increases the fare collection efficiency by reducing leakage and fraud.

Estimated to cost around 1.72 billion pesos, the project involves the financing and installation of the required infrastructure to accommodate the AFCS system particularly the back office; designing and constructing a system accommodating contactless smartcard technology based on international standards; and operating and maintaining the AFCS for a concession period of ten (10) years.

According to PPP Center Executive Director Cosette V. Canilao, under the current system, passengers transferring from one line to the other are required to purchase separate tickets resulting in multiple queuing times and boarding fees. This keeps our rail system from running at its fullest potential.

“An efficiently procured contactless AFCS project will bring important benefits to the over 1 million passengers who use the metro rail system daily,” she added.

As the project’s implementing agency, the Department of Transportation and Communications (DOTC), with assistance from the PPP Center, is set to conduct an investor conference on 18 December 2012.  The event aims to promote the project, invite industry experts, and provide more information to interested private sector partners and potential bidders.

The AFCS project is a recipient of the Project Development and Monitoring Facility (PDMF) fund support managed by the PPP Center. Through this revolving fund, internationally renowned firm, Rebel Group International BV, was contracted to provide transaction advisory and bids management services to ensure that the project is well-prepared and highly viable for private sector participation.