The Department of Transportation (DOTr) is inviting the private sector to participate in the preliminary market sounding exercise for the privatization of the National Capital Region Edsa Busway and North Long Haul Inter-Regional Railway, the first batch of public-private partnership (PPP) projects.
The DOTr in cooperation with the PPP Center has started the initial market sounding exercise for transport PPPs yesterday, November 16 and this will run until November 23.
This activity, which will be facilitated through email correspondence of the questionnaires, is intended to solicit insights and feedback on the project terms from interested private sector partners, the DOTr said in a statement.
The DOTr intends to conduct another market sounding activity for the second batch of projects which include the Manila Bay-Pasig River-Laguna Lake ferry system.
DOTr said the PPP Center will fund the feasibility study for the projects.
“The PPP Center (PPPC) manages the Project Preparation and Monitoring Facility which provides funding for the feasibility study of PPP projects. DOTr has applied to utilize these funds for its upcoming transportation PPP projects. The preliminary market sounding activity is part of the process of PPPC’s approval process of DOTr’s application for funding,” the agency said.
The preliminary market sounding activity aims to discuss the scope of the proposed PPP project, ascertain the level of interest of the private sector to undertake the same; to gather initial feedback from potential project sponsors, contractors/operators and financiers; and identify potential issues or problems that may affect the viability of these projects.
The private sector is expected to participate in the bidding as Management Association of the Philippines (MAP) has proposed to the government to consider the privatization of the EDSA Busway, to improve mass public transportation services aligned in global standards.
Under the hybrid mode, the government provides the infrastructure and its improvements, while a private concessionaire will operate the service and maintain the facilities under an operate and maintenance concession.
MAP has offered to work with the DOTr and other private sector stakeholders in preparing the terms of reference for the bidding and award of the concessions to ensure a level playing field for all.
