50

INFRASTRUCTURE

PH, JICA prepares new Metro Manila road

network development plan
The Philippine government has tapped the Japan International Cooperation Agency (JICA) to craft a
transport infrastructure development roadmap for Metro Manila that will address the perennial problem
of congestion on major roads of the metropolis. The roadmap is expected to be completed in August.

A
JICA report states that the country is already losing
P2.4 billion of potential income daily due to the traffic
congestion on Metro Manila roads. In the proposed
“Mega Manila Transport Dream Plan”, JICA suggests to spread
economic activities to potential growth centers in Region III and
Region IV-A (Cavite, Subic, Clark, Tarlac, Batangas and Lucena)
so as to decongest traffic in Metro Manila. It also outlined the
need to boost infrastructure development, such as: (1) improved
road networks and expressways; (2) an integrated urban mass-
transit network in Metro Manila; (3) road-based public transport
modernization, and; (4) an upgraded traffic management system.
The development of the major road network in Metro Manila
was first conceived in the Metropolitan Thoroughfare Plan of
1945, predicting that the metropolis in the 1940s will expand in the planning process (see table). Meanwhile, construction
further to the shorelines of Laguna de Bay. The plan proposed of an R7 expressway is currently being planned in attempt to
the laying of circumferential roads 1 to 6 (C-1 to C-6) and radial decongest traffic on the “most heavily congested corridors in
roads 1 to 10 (R-1 to R-10) (see boxes). However, the 15 major Metro Manila” – according to the Department of Public Works
thoroughfares eyed more than 68 years ago remain incomplete and Highways (DPWH). The eyed project will be partially
to this day. Only C-1 to C-4 (or EDSA) have been completed, elevated and partially underground with 4 lanes and 16.1km
with most roads experiencing major traffic gridlocks. C-5, long. Planned implementation is between 2016 and 2018.
on the other hand, is still being completed and C-6 remains

JICA suggests to spread economic activities to potential growth centers: Cavite,

Subic, Clark, Tarlac, Batangas, and Lucena.
Philippine ANALYST July 2013
 INFRASTRUCTURE 5
51

C-5 AND C-6 PROJECTS AND UPDATES (AS OF JULY 2013)

PROJECTS DESCRIPTION PROJECT COST STATUS TIMELINES
Jul’13-Feb’14: Transaction
4-6 lanes from Quirino Supplemental feasibility study which Advisory Services
Highway to Sucat Total: P44.59 Bn re-evaluated Phase 1 (Sucat – Marcos Feb’14: For submission to NEDA
C-6 Expressway and Global
(59.5km). Includes 7 NG: P3.99 Bn (8.9% Highway) was completed in December 2012. Mar’14: NEDA review and approval
Link (South Section)
interchanges; 2 junctions; of total) Requested for PDMF (of PPP) support in
and 2 toll plazas Transaction Advisory Services. 2014-2017: Approval of detailed
design; Start of construction
4 lanes from Bicutan to
Jul’13-Feb’14: Transaction
proposed C6 Expressway,
Business case study was completed in Advisory Services
to Muntinlupa, to Los Total: P 42.38 Bn
C-6 Extension Flood Control December 2012. Requested for PDMF
Banos, Laguna (43.6km). NG: P1.314 Bn (3.1%
Dike Expressway (of PPP) support in Transaction Advisory mid 2014-2017: Approval
Includes bridges, pumping of total)
Services. Undergoing conceptualization. of detailed design; Start of
stations, and ancillary
construction
flood gates.
2 to 4 lanes providing
C-5/Food Terminal Inc.
direct access to FTI from Total: P5.64 Bn Detailed Design is underway. 2013 – 2015: Construction
(FTI)/Skyway Connector
C-5 and Skyway (6.8km).

Sources: DPWH, Press releases

METRO MANILA MAP OF CIRCUMFERENTIAL ROADS

C-6

C-5

C-4

C-3
C-1
C-2
Port
Area

ROAD NETWORK
C-1 Roxas. Blvd. - Taft Ave. - Echague St. - Legarda St. - R-10 Road
C-2 Roxas Blvd. - Mendoza-Guanzon St. - Legarda St. - Dimasalang St. - R-10 Road
Roxas Blvd. - Ayala Ave. - N. Domingo St. - Aurora Blvd. - Sgt. River St. - G. Araneta Ave. - A.
C-3
Bonifacio Ave. – R-10 Road
C-4 Taft Ave. - McArthur Highway (EDSA) - A. Mabini Ave. - Sansiangco St
C-5 South Superhighway - Katipunan Avenue - Letre Roa
C-6 Alignment under study

Philippine ANALYST July 2013

52 INFRASTRUCTURE

METRO MANILA MAP OF RADIAL ROADS

Port
Area

ROAD NETWORK
R-1 Roxas Boulevard (Del Pan Bridge to Seaside Road to Bacoor, Cavite)
R-2 Taft Avenue (Lawton to Baclaran)
R-3 Manila South Expressway (Pres. Quirino Ave. to Zapote-Alabang Road)
Pasig Line (Pedro Gil Street to A. Francisco Street)
R-4 Kalayaan Ave. (A. Bonifacio St. to Bel-Air Subd.)
Kalayaan Ave. (EDSA to C-5)
V. Mapa St. (R. Magsaysay Blvd. to Valenzuela St.)
P. Sanchez (Valenzuela St. to Gen. Kalentong St.)
R-5
Shaw Blvd. (Gen. Kalentong St. to Capt. Javier St.)
Pasig Blvd. (Capt. Javier St. to Dr. Sixto Antonio Ave.)
Legarda St. (C.M. Recto Ave. to Nagtahan)
R. Magsaysay Blvd. (Nagtahan to V. Mapa St.)
R-6
Aurora Blvd. (V. Mapa St. to marcos Highway)
A. Bonifacio H-way/Sumulong H-way (Marcos H-way to Marikina Bdy.)
Lerma Street (Quiapo to Morayta Street)
España Avenue (Morayta St. to E. Rodriguez Ave.)
R-7
Quezon Ave. (E. Rodriguez Ave. toElliptical Road)
D.M. Marcos Ave. (Elliptical Road to Fairview Ave.)
Quezon Blvd. (Quiapo to Dapitan St.)
A. Mendoza Ave. (Dapitan St. to Laong Laan St.)
R-8 Dimasalang St. (Laong Laan St. to Retiro St.)
A. Bonifacio Ave. (Retiro St. to EDSA)
Quirino Ave. (EDSA to Quezon City Limit)
J. Abad Santos Ave. (C.M. Recto Ave. to Aurora Blvd.)
R-9 Rizal Ave. Ext. (Aurora Blvd. to EDSA)
McArthur Highway (EDSA to Baclaran Boundary)
R-10 Del Pan Bridge to Spine Road

Philippine ANALYST July 2013

 INFRASTRUCTURE 5
53

The 15 major thoroughfares eyed more than 68 years ago remain incomplete
to this day.

In the President’s State of the Nation Address, he stated that the OFC-DOJ is undertaking a port sector study that will look
the government is working to achieve the following by 2016: into the level of competition, port efficiency, and regulatory
 Pave the entire national road network and rehabilitate and framework, which is expected to be completed in 3 months.
upgrade bridges along national roads to provide faster and Over the past 2 to 3 years, Manila ports have become
safer mobility, and facilitate trade and access to markets and much more congested with the average number of containers
tourism areas; at 3.3 million twenty-foot equivalent units (TEUs) growing
 Reduce daily transport cost for commuters in Metro Manila by about 9% annually, while the capacity of the ports has
by providing more convenient means of transportation and remained at 4 million TEUs. The National Competitiveness
encouraging use of urban mass transportation; Council, the Japan International Cooperation Agency, and the
Joint Chamber of Commerce suggest a mandatory diversion
 Bring down logistics cost by 8 percentage points from
of cargoes to either the port of Batangas or the Subic ports
23% in 2013 to 15% by 2016 through investments in
for decongestion of the port of Manila. The 3 groups claim
transport infrastructure and issuance of effective policies
that doing this will not only result to full utilization of the
and regulations, and;
terminals but also induce growth in other areas of the country.
 Provide adequate infrastructure support to key tourism areas As of March 2013, containerized cargo traffic remains
by developing access roads, airports, and ports. concentrated in the North Luzon region, particularly in Manila
Among other pipeline projects in line with achieving these (see chart). Total cargo volume accounted for in the North
general goals are: the 8-km, 4-lane elevated expressway connecting Harbor, South Harbor and the Manila International Container
C3 road to Caloocan, crossing España, up to PUP in Sta. Mesa; Terminal (MICT) amounted to 11,655,783 MT or about 893,451
the 14-km, 6-lane elevated tollway extending from Balintawak to TEUs, which is the bulk or 63% of the total cargo volume in the
Buendia in Makati; and the 5 ½-km, 6-lane elevated expressway North Luzon region. This volume is also the largest or 28% of
from PUP in Sta. Mesa crossing Osmeña and Quirino Avenue, to the total cargo volume in the Philippines – the Batangas port in
Buendia in Makati. Pres. Aquino said that once these roads open Southern Luzon being the 2nd with 13% of total cargo volume
“what once took 2 hours from SLEX to NLEX will now take only in the 1st quarter. Based on the data, approximately 3.56 million
15 minutes” and “what once was a 3-hour drive from Clark to MT or at least 31% of the total cargo volume in Manila ports
Calamba will be reduced by almost half to an hour and 40 minutes.” are for the consumption of the Metro Manila market, while
the rest are shipped to other parts of the country and to other
countries with Manila serving as the Philippines’ central dock.
Gov’t conducts study, prepares action plan to
disperse cargo traffic at PH ports
The Philippine Ports Authority and the Department of
Justice’s Office for Competition have agreed to conduct
an assessment study of cargo traffic in ports across the
country and address the port cargo congestion issue
through “competition reforms”. The agreement is valid
until December 31, 2014.

The state-run Philippine Ports Authority (PPA) and the Office

for Competition of the Department of Justice (OFC-DOJ) entered
into an agreement on July 1 to jointly address and come up with a
viable solution to the congestion issue at Port of Manila that has
been one of the major concerns of industry in the past couple of
Domestic Foreign
years. The PPA created a Special Project Office under the PPA
Special Order No. 422-2013 signed on July 8, (1) to develop NOTE: Figures are in metric tons
and implement a Port Competitiveness Strategy and Action Data source: Philippine Ports Authority (PPA)
Plan; and (2) to organize port competitiveness units. Meanwhile,

Total cargo volume serviced in Manila ports amounted to 11,655,783 MT, which is
63% of total cargo volume in Northern Luzon and 28% of total cargo volume in PH.
Philippine ANALYST July 2013
54 INFRASTRUCTURE

CARGO FLOW IN SOME PHILIPPINE PORTS 1Q2013

Iloilo
San Fernando Domestic: 886k MT
Domestic: 45k MT Foreign: 618k MT
Foreign: 2.9M MT
Cagayan de Oro
Domestic: 1.6M MT
Foreign: 298k MT
Manila
Domestic: 4.6M MT
Ormoc
Foreign: 7.1M MT
Domestic: 634k MT
Foreign: 475k MT
Limay
Domestic: 1.6M MT
Foreign: 2.4M MT
Davao
Domestic: 579k MT
Foreign: 966k MT
Batangas
Domestic: 2.2M MT
Foreign: 3.2M MT

Puerto Princesa
Domestic: 482k MT
Foreign: 2.4M MT

General Santos
Domestic: 461k MT
Foreign: 324k MT

Data Source: Philippine Ports Authority (PPA)

Cargo volume serviced in some parts of the country during PPP update: 3 awarded, 8 rolled-out
the 1st quarter of 2013 are as follows: 3,928,387 MT in Limay;
2,931,578 MT in San Fernando; 2,877,309 MT in Puerto The slow-paced but thorough processing of PPP projects
Princesa; 1,503,325 MT in Iloilo; 1,848,787 MT in Cagayan is expected to continue as President Aquino vows for an
de Oro; 1,544,461 MT in Davao; 1,108,954 MT in Ormoc; “honest, transparent and clean” implementation of projects.
and 784,761 MT in General Santos, among others (see box).
There is not much competition between ports in the In the 4th State of the Nation Address, President Benigno
archipelago, so to disperse cargo traffic the OFC-DOJ will have Aquino III was quick to defend the slow-paced progress of his
to look into possible business incentives and regulations that will flagship infrastructure program – the Public-Private Partnership
attract investment elsewhere across the country. One suggestion (PPP) – stating that it has been plagued with a number of
from the private sector is a PPA charter amendment privatizing questionable contracts bequeathed to him by his predecessors.
the port sector. In terms of the country’s global competitiveness in President Aquino said, “Back in 2010, when our administration
trade logistics, it ranked 52nd out of 155 countries based on a trade came into office, we were left with only 6.5% of the programmable
logistics competitiveness report made by the World Bank in 2012, budget for the year, or just around P100 billion… [Apart from this]
and placed 62nd with a low score of 2.80 out of 5 in infrastructure. the studies on which the projects were based were outdated, and
Meanwhile, the ports in Manila will undergo major [the government] lacked the sufficient knowledge to implement
reconstruction with the MICT set to launch its Berth 7 this them.” Thus, he further stressed that under his administration
year that will increase its capacity to more than 2.5 million each project will have to go through the “correct process” for a
TEUs, while South Harbor is set to take in about P1.4 million proper implementation, even if it takes a longer time to implement.
this year to expand its capacity to more than 1 million TEUs
as well as improve its crane rails and an additional quay
crane. The North Harbor is also undergoing modernization.

Philippine ANALYST July 2013

 INFRASTRUCTURE 5
55

Out of 10 projects, the government can only put up 1 project for bidding each year
and award 1 project after almost 1 year and 2 months.

The Department of Transportation and Communications

Original Priority List of PPP Projects (DOTC) expects that most of the infrastructure projects (valued
November 2010
around P500 billion) will be completed within President Aquino’s
1. Cavite-Laguna (CALA) Expressway term, which ends in 2016. However, not all of these projects
2. NAIA Expressway – Phase 2 (awarded) will be implemented under the PPP program. Three of the
3. LRT-1 South Extension original line-up of PPP projects are currently being considered
4. Privatization of LRT-1 O&M for official development assistance (ODA) financing. These
5. LRT-2 East Extension
are the construction of: LRT-2 East Extension; New Bohol
6. Privatization of MRT-3 O&M
(Panglao) Airport Development; and Puerto Princesa Airport
Development. The New Legazpi (Daraga) Airport Development,
7. New Bohol (Panglao) Airport Development
on the other hand, was approved for government financing.
8. Puerto Princesa Airport Development
Meanwhile, President Aquino boasted in the SONA that
9. New Legazpi (Daraga) Airport Development
the implementation of infrastructure projects “left to decay”
10. Privatization of Laguindingan Airport O&M
in the past was expedited under his term. These included:
(1) the Laguindingan airport, which took 1 generation to be
implemented and be operational in June 2013; (2) the Advanced
Mid-way into President Aquino’s term, only 3 PPP projects Device and Materials Testing Laboratory (ADMATEL) for
have been awarded and 2 from the original line-up of 10 priority the semiconductor industry, which took decades before it was
projects have ongoing bidding. At present, there are 28 projects in inaugurated in May 2013 under the leadership of the DOST;
the pipeline of PPP projects (see table), of which 8 have ongoing (3) the Aluling Bridge in Ilocos Sur, which took 35 years to
bidding. Two are under evaluation of the National Economic complete construction in March 2013; (4) the Ternate-Nasugbu
Development Authority (NEDA), while 14 are still preparing Road, which took 20 years to complete construction of sloped
feasibility studies. This means that (as of July 2013) out of 10 sections of the 6-km road connecting Cavite, Batangas and
projects, the government can only put up 1 project for bidding Manila, and; (5) the Jalaur River Multi-Purpose Project II
each year and award 1 project after almost 1 year and 2 months. in Iloilo, which is finally being implemented after 50 years.
PPP Center Executive Director Cosette Canilao told
the press before, "We don’t want to repeat the mistakes we
had in implementing projects that failed miserably in the
end." Philippine Institute for Development Studies (PIDS)
President Gilberto Llanto agreed, he said, “The takeoff [so far
is] slightly slow. But the reasons are understandable. Down
the road, in the next 3 years, we should expect an increase.”

Philippine ANALYST July 2013

 56

STATUS OF PPP PROJECT (AS OF JULY 2013)

Procurement Business Cases/
Under NEDA For NEDA-ICC For NEDA Preparations for Live

Philippine
Projects Cost Agency of Transaction Feasibility Studies Awarded
evaluation approval Board approval Bidding Bidding
Advisory Services preparation

1. Daang Hari-SLEX Link Road Project $46.6 M DPWH √ √ √ √ √ √ √ √

ANALYST
2. PPP for School Infra Project Phase 1 P16.42 B DEPED √ √ √ √ √ √ √ √

3. NAIA Expressway Project Phase 2 P15.52 B DPWH √ √ √ √ √ √ √ √

4. LRT Line 1 Cavite Extension and O&M P60.63 B DOTC √ √ √ √ √ √ •

5. Automatic Fare Collection System P1.72 B DOTC √ √ √ √ √ √ •

6. Mactan-Cebu International Airport Passenger Terminal

INFRASTRUCTURE

P17.52 B DOTC √ √ √ √ √ √ •
Building

7. CALA Expressway P35.58 B DPWH √ √ √ √ √ √ •

8. Talisay City Plaza Complex Restoration &

P190.29 M LGU √ √ √ - - √ •
Redevelopment

9. Modernization of Philippine Orthopedic Center P5.7 B DOH √ √ √ √ √ √ •

10. Angat Hydro Electric Power Plant Rehabilitation and

P1.15 B MWSS √ √ √ √ √ √ •
O&M

11. PPP for School Infra Project Phase 2 P8.8 B DPWH √ √ √ √ √ √ •

12. NLEX-SLEX Connector Road (Unsolicited Proposal) P25.56 B DPWH - - √ √ √ •

13. Metro Manila Integrated Transport System TBD DOTC √ √ •

14. New Bohol (Panglao) Airport Development Enhanced

$190.5 M DOTC √ √ •
O&M

15. Grains Central Project P400 M DA - •

16. Cold Chains Systems Covering Strategic Areas in the

P693.4 M DA - •
Philippines

17. Quirino Highway Rehabilitation TBD DPWH - •

18. Laguindingan Airport O&M TBD DOTC - •

19. LRT Line 2 O&M TBD DOTC • •

20. Puerto Princesa Airport O&M TBD DOTC - •

21. New Centennial Water Supply Source Project TBD MWSS - •

22. Bulacan Bulk Water Supply Project TBD MWSS - •

23. El Nido Water Supply & Sanitary Facility Project TBD LGU - •

24. Plaridel Bypass Toll Road TBD DPWH • •

25. Batangas-Manila (BatMan) 1 Natural Gas Pipeline Project TBD PNOC • •

26. LRT Line 1 Extension (to Dasmarinas) TBD DOTC • •

27. Iloilo, Davao, Bacolod Airports O&M TBD DOTC • •

28. Manila Bay-Pasig River-Laguna Lake Ferry System Project TBD DOTC • •
Notes:
TBD – to be determined
√ - Completed
• - Ongoing
Highlighted projects are included in the original top 10 priority list in 2010.
Source: PPP Center, Press Releases

July 2013
 INFRASTRUCTURE 5
57

STATUS OF BIG TICKET INFRASTRUCTURE PROJECTS

AS OF July 2013

IMPLEMENTING FUNDING CIVIL WORKS

PROJECT TITLE PROJECT COST STATUS / ISSUES
AGENCY SOURCE TIMEFRAME

LRT 1 South Extension –

DOTC/LRTA ODA/PPP 2013-2017 P60.63 billion Bidding was rescheduled from July 30 to Aug. 15.
Construction and O&M

CALA Expressway
The project is now offered as a “pure PPP”. Deadline for submission of bids
(under Build-Transfer- DPWH PPP 2015-2017 P35.58 billion
is on Sept. 23.
Operate scheme)
For the project’s immediate implementation, DPWH decided to unbind the
NLEX-SLEX Connector Road
DPWH PPP 2013-2016 P25.56 billion unsolicited proposal of Metro Pacific Tollway Corp. (MPTC), which will not
project
subject the project to a Swiss challenge.
Visayas-Mindanao To be Feasibility study and hydrographic survey are expected to be completed
DOE-NGCP 2016-2018 P24 billion
Interconnection determined by mid-2014.
Mactan-Cebu International
Technical bidding is ongoing and expected to close on Aug. 28. Submission
Airport expansion
DOTC-MCIAA PPP 2014-2016 P17.52 billion of documents to change consortium members and of required licenses of
(Passenger Terminal
construction contractors was extended from July 30 to Aug 15.
Building)
PPP for School
Construction of 711 sub-projects (2,359 classrooms) is ongoing. Notices to
Infrastructure Project DepEd PPP 2013-2014 P16.42 billion
Proceed (NTPs) with 951 sub-projects (3,498 classrooms) was issued.
(PSIP) Phase 1
NAIA Expressway DPWH PPP 2014-2015 P15.52 billion Ongoing preparation of Detailed Engineering Design.
LRT 2 East (Masinag)
DOTC-LRTA NG-ODA 2013-2016 P9.7 billion Preparation of detailed engineering design is ongoing.
Extension Project
PPP for School
Infrastructure Project
DepEd PPP 2013-2014 P8.8 billion Evaluation of bids from 4 pre-qualified bidders is ongoing.
(PSIP)
Phase 2
New Bohol (Panglao) DENR and DOTC signed a Memorandum of Agreement on July 14 creating an
DOTC ODA-NG 2013-2017 P7.14 billion
International Airport environmental monitoring fund and environmental guarantee fund.
Modernization of Philippine
DOH PPP 2013-2016 P5.7 billion Awaiting NEDA-ICC approval of bid.
Orthopedic Center
Pres. Aquino signed Administrative Order No. 40 on July 16 to start
Metro Manila Integrated
DOTC-LTFRB PPP 2013-2016 P5.06 billion construction of interim transport terminals. There will be 1 station to and
Transport System
from northern Luzon, and 2 in Laguna/Batangas and Cavite.
New Bicol (Daraga)
DOTC NG 2013-2015 P4.8 billion Preparation for construction of the airport is still ongoing.
International Airport
Upgrading of Puerto Feasibility study is still ongoing and is scheduled to be completed by the
DOTC ODA 2013-2015 P4.4 billion
Princesa Airport end of the year.
Caticlan Airport
DOTC PPP 2010-2016 P2.51 billion Accomplished 78.72% of construction.
Development Project
DOTC did not meet its goal of signing the construction work agreement with
NAIA 3 Rehabilitation and
DOTC NG 2013-2014 P1.89 billion Takenaka Corp. on July 15, but is expected to be done soon after a final
Full Operationalization
review of the contract by DOTC’s lawyers.
Daang Hari-SLEX Link Road
DPWH PPP 2012-2014 P1.96 billion Accomplished 30.15% of civil works
Project
Automated Fare Collection
DOTC-LRTA PPP 2013-2014 P1.72 billion Open for bidding in Aug. 2013. Scheduled to be awarded in Nov. 2013.
System
Angat Hydro Electric Power
To be Korea Water Resources Corporation (K-Water) remains undecided between
Plant Rehabilitation and MWSS PPP P1.15 billion
determined refusing and accepting the contract.
O&M
Upgrading of Tacloban ODA fund from JICA was realigned to other projects and DOTC dropped
DOTC NG 2013-2016 P1 billion
Airport (Terminal Bldg.) plans to propose the project under PPP.

Philippine ANALYST July 2013