ADB Supports Efficient Transport in Philippines through PPP Advisories

MANILA  — The Asian Development Bank (ADB) has been appointed as transaction advisor to the Department of Transportation (DOTr) of the Philippines on three projects crucial to enhance public transportation and improve the daily commute of its users. As transaction advisors, ADB through its Office of Markets Development and Public–Private Partnership will support DOTr in project preparation, contract structuring, and the procurement of qualified private partners for three projects.

First, ADB will assist DOTr in engaging an experienced passenger rail operator that will rehabilitate, operate and maintain the metro rail transport line 3 (MRT3), a 17-kilometer railway operating along the Epifanio de los Santos Avenue (EDSA), crossing the key cities of Pasay, Makati, Mandaluyong and Quezon City with 13 stations. EDSA is one of the world’s highest-volume thoroughfares, catering to most of Metro Manila’s 14 million residents. MRT3 is currently being operated by DOTr, with maintenance being provided by Sumitomo – Mitsubishi Heavy Industries Ltd. under a contract that comes to an end in 2025.

Second, ADB will support the Department in engaging a capable operator for a high-priority bus transport system in Davao City. The modern bus system—being financed through a $1 billion loan provided by ADB—will include electric and diesel buses covering 29 bus lines connecting Davao through four tiers and will be equipped with appropriate infrastructure such as bus terminal and stops, and lanes. The selected private partner will also establish and operate an Intelligent Transport System and an Automated Fare Collection System to further enable seamless operations.

The third project leverages digital solutions to improve sustainability and transparency in public transport. ADB will help the transport office in developing the Philippine Automated Fare Collection System and in selecting a private partner for the project. The initiative involves the development of a nationwide, cashless, open, multimodal, and interoperable automated fare collection system that will be implemented across all public transport systems, with the initial roll-out targeted at the government-owned rail lines.

“Efficient public transport systems are key to ensuring a sustainable growth as well as mitigating the impact of climate change,” said Head of ADB’s Office of Markets Development and Public–Private Partnerships Cleo Kawawaki. “We are honored to support DOTr in finding the right private partners for these projects, which will bring greater efficiency, innovation and better consumer experiences for public transport users in the Philippines.”

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.