The Asian Development Bank (ADB) is set to provide its first public-private partnership (PPP) transaction advisory to the Philippines for the North-South Railway Project (NSRP) – South Line project. This is the biggest PPP project to date that the government will tender with an indicative cost of USD 3.8 billion.
ADB will be joined by the Development Bank of the Philippines (DBP) to provide advice on the NSRP-South Line PPP project to the Department of Transportation and Communications (DOTC).
According to ADB, this is also the first transaction advisory service that they are offering to the transportation sector in a developing member country.
The proposed NSRP South Line PPP covers Metro Manila to Legazpi City, Albay, plus a number of existing and proposed branch lines totalling to approximately 653 km. It consists of commuter railway operations between Tutuban and Calamba City, Laguna and long haul railway operations between Tutuban and Legazpi City, Albay, including extended long haul rail operations on the branch line between Calamba City and Batangas City and extension between Legazpi City and Matnog, Sorsogon.
The Office of Public-Private Partnership of ADB will provide the advisory services that will help the country structure and tender this infrastructure project. ADB website stressed that the services they will offer the country will “start from deal structuring, bid packaging, project marketing and strategy so that the government will be able to complete its transactions and achieve financial close”.
ADB also emphasized that “the Philippine government has the sole authority and final say on the awarding of the project”.
