Foreign firms based in Singapore are keen on investing in the Philippines’ high-growth railway sector during the market sounding activity jointly conducted by the Department of Transportation (DOTr), Asian Development Bank (ADB), Infrastructure Asia (InfraAsia), and the International Finance Corporation (IFC) in Singapore from June 17 to 19.
Transportation Secretary Giovanni Lopez said the potential investors are looking at Public Partnership Partnership (PPP) as the likely mode of entry in the sector.
He said the Philippines needs efficient mass transportation to improve the quality of life of every Filipino.
“By partnering with the private sector, we can build the railway system our people rightfully deserve and fulfill the President’s vision of a modern, connected Philippines,” Secretary Giovanni said.
During the market sounding activity, DOTr Undersecretary for Railways Timothy John Batan noted that the Philippines lags behind its Association of Southeast Asian Nations (ASEAN) neighbors in terms of railway length per million population.
“The massive gap we face is particularly magnified in rail infrastructure. This is not because the Philippines lacks the need for rail. The demand for mass transit in our congested capital [Metro Manila] is overwhelming. The gap between where we are and where we need to be is not a matter of demand. It is a matter of investment and delivery,” Usec. Batan said.
The transport executive stressed that greater participation through Public-Private Partnerships (PPP) in the railway sector can help transform the country’s transportation landscape.
“Closing even a part of this rail density gap represents one of the largest infrastructure investment opportunities in Southeast Asia,” Usec Batan said.
He cited ongoing projects in the Philippines aimed at serving millions of commuters. These include the Metro Manila Subway Project (MMSP), the North-South Commuter Railway (NSCR), and the Japan International Cooperation Agency (JICA)- and Asian Development Bank (ADB)-supported 30-year Railway Master Plan for the Greater Capital Region.
The DOTr emphasized that the Philippines is entering a pivotal period in its railway development program and invited private firms to participate in the country’s long-term infrastructure growth.
“The Philippines is at a critical point in its infrastructure journey. We are finally seeing long-standing plans become operational systems, and we are committed to doing it right,” Sec. Lopez said.
