More transport projects were granted support from the Project Development and Monitoring Facility (PDMF) during the Special PDMF Committee meeting on October 27, 2023.
The PDMF Committee approved the application for funding of the Department of Transportation (DOTr) for the provision of Transaction Advisory Services for the Unsolicited Proposals (USPs) for Regional Airports, the Air Traffic Services (ATS) – Air Navigation Services (ANS) Project, and the Rehabilitation, Expansion, Operations, and Maintenance (O&M) of the Light Rail Line 2 (LRT 2). The transaction advisory services is proposed to be provided by the International Finance Corporation (IFC), a member of the World Bank Group, with extensive experience in PPPs in various sectors.
The USPs for Regional Airports include the Upgrade, Expansion, and O&M of the Bohol-Panglao, Laguindingan, and Bicol International Airports. The private sector will undertake the financing, designing, constructing, upgrading, commissioning and the O&M of the airports. PDMF will support the projects during the due diligence and detailed review of the USPs, ICC review, negotiations for PPP contract, government final clearance of PPP agreement, or during the bid tender and PPP contract award phases. The projects support the economic recovery post COVID-19 pandemic and the Government’s thrust to promote regional economic development, enhance tourism potential, and integrate ‘Green’ and ‘Connected’ Airport concepts into airport design, operations, and maintenance.
The ATS-ANS Project will receive transaction advisory services covering a gap analysis, preparation of business case, and market/stakeholder consultation. It involves the proposed financing, design, construction, modernization, upgrading, and O&M of air traffic services and air navigation services facilities for the Philippine and international airspace managed by the Philippines which will be undertaken by the private sector. Through the modernization and upgrading of existing ATS-ANS facilities of the Civil Aviation Authority of the Philippines, there will be more efficient routing of aircraft in the Philippine and international airspace managed by the Philippines, increased capacity and improved quality of international and inter-regional air linkages, and more access to economic zone and options for exports.
Additionally, the PDMF Committee approved transaction advisory support for the proposed rehabilitation and O&M of the LRT2 project, which shall also explore possible expansion of the system by three kilometers and addition of three stations to the west and to the east. The private sector will undertake the financing, design, construction, commissioning, and O&M of the expanded LRT2. The project is expected to reduce travel time, logistics costs, and road congestion, promote safer travel for vulnerable groups, alternative travel options, increase connectivity of economic centers, reduction of greenhouse gases and noise pollution from road vehicles, climate resilient transportation safety, increase in land value, as well as easier access to government services.
The LRT project will be granted support covering due diligence of the project, assistance in securing the necessary government approvals, detailed structuring, marketing to potential investors, and assistance in the bidding process.
The approval of the PDMF support was led by the National Economic and Development Authority as the Committee Chair, with the Department of Finance as Vice Chair, and Department of Budget and Management and PPP Center as committee members.