Transport infrastructure

An Expert's View about Transportation and Storage in the Philippines

Last updated: 26 Sep 2011

Key investments in transport infrastructure through public-private partnerships (PPP) are poised for roll-out in 2011 and 2012. The Philippines is determined to catch up on much needed investments in transport infrastructure.

Sector briefing Transport infrastructure sector in the Philippines Why the Philippines? Key investments in transport infrastructure through public-private partnerships (PPP) are poised for roll- out in 2011 and 2012. The Philippines is determined to catch up on much needed investments in transport infrastructure. The government targets to roll out twelve (12) major infrastructure development projects within the next two years. These include those in rail, roads and airports with a total estimated value of USD 3.5 billion. The need for expanded transport and road infrastructure is widely recognized See the UKTI website for general information and thus prioritised by the government. about the Philippines. The ?Doing business? The same is true with rehabilititating and/or guide includes an overview of the economy, upgrading existing infrastructures. business culture, potential opportunities and Government is very keen on successfully other relevant issues. implementing the identified infrastructure projects? setting aside budgets for right-of- way acquisitions for several projects and establishing the PPP Centre with initial funds to support project development and monitoring. Investments in infrastucture is expected to boost and sustain growth in other sectors such as construction and tourism, at the same time encouraging greater participation in other PPP pipeline projects in agriculture, education, health and power and energy. UK Trade & Investment Sector briefing: Transport infrastructure opportunities in the Philippines Beyond 2012, around USD 111 million worth Opportunities of airport projects are to be pursued namely the Kalibo Airport Upgrading, NAIA Terminal 3 The Philippines is open for business Upgrading and Full Operationalisation, and under new management. Infrastructure the Balabac Airport Development. The two 2010 in November launched the government?s (2) other major project plans being developed list of at least fifty (50) PPP projects, and that is the Privatization of NAIA and the prioritised key infrastructure projects. The Diosdado Macapagal International Airport Aquino administration is committed to its PPP (DMIA), and the Mactan-Cebu International initiatives and in doing things in an honest, Airport Development Project. clear and transparent manner. Ports For 2011, five (5) projects are targeted to be The Philippine Ports Authority (PPA) is in the bidded out namely: O&M for Metro Rail process of detailing its plans and prioritising Transit Line 3 (MRT3), O&M Light Rail Transit its project list. While project costs have yet 1(LRT1), Daang-Hari South Luzon Expressway to be determined, the PPA has already Link, Ninoy Aquino International Airport identified three (3) for rollout in 2012. These Expressway (NAIA) Phase II and the North include the Development of the Port of Davao Luzon Expressway (NLEX) ? South Luzon (SASA), South Harbor Expanded Port Zone Expressway (SLEX) Link. (SHEPZ) Development and the Bulk Terminal Project at the Northwest Portion of South Rail Harbor ? Port Area, Manila. In 2010, in-city light rail LRT 1 & 2 and MRT 3 transported 13M, 5M and 13M passengers The concessionaire for the Manila North respectively, on a monthly average. Apart Harbour has just completed its master plan from upgrading and rehabilitation, there is for modernization, which also opens up the obvious need for expansion. opportunities for supply chain requirements in products and services. Other opportunity Four (4) of the twelve (12) PPP projects for areas are the Expansion of the North Harbour roll-out in the next two years are in the rail and the Development of the New Cebu Port. sector. This includes O&M contracts for LRT 1 and MRT 3, LRT 1 South Extension Project Roads and the LRT 2 East Extension Project. These The Philippine arterial road network rail projects amount to USD 2.12 billion. composed of 6 circumferential and 10 radial roads was proposed in the late 1960s. While The Philippine National Railways (PNR) all radial roads have been finished, reported an over 200% increase in ridership circumferential roads remain incomplete. from January-November 2010 owing to efforts in rehabilitating and modernising its commuter Four (4) PPP road development projects were line. Plans to upgrade remaining sections and identified for rollout in the next two years, of privatise operations are underway and are which three (3) are slated to be bidded out being developed. this year. These four (4) projects include the Ninoy Aquino International Airport Other rail projects in the offing are the Main Expressway (NAIA) Phase II and the North Line South Upgrading and Modernization, Luzon Expressway (NLEX) ? South Luzon and the Development of the Mindanao Expressway (SLEX) Link, CALA Expressway Railway System. Manila Side section, and the Daang-Hari South Luzon Expressway Link. The total Airports value of these projects is USD 981 million. There are four (4) airport PPP projects scheduled for roll-out in 2011-2012, namely: Other PPP pipeline projects are listed for the New Bohol Airport Development, O&M of implementation in the medium-term. This list Laguindingan Airport, Puerto Princesa Airport of eleven (11) projects involve new, as well Development and the New Legaspi (Daraga) as extensions of existing expressways, Airport Development. The estimated total including a skyway connector. Estimated value for these projects is USD 371 million. value of these projects is USD 4.2 billion. Market Opportunities UK Trade & Investment Sector briefing: Transport infrastructure opportunities in the Philippines The Philippines? PPP projects offer numerous Major events and activities opportunites for UK products, services and expertise. These can be accessed by PPP Mission to Manila (joint w/ Jakarta) participating in the bidding process or tapping Contact: Joyce Guzon and Rachel Gancia supply chain opportunities through direct Email: supply or partnerships. Time: Autumn 2011 (Date TBC) Opportunities can be categorized into two For details of events related to this country or main areas, which are; Infrastructure that sector, use the events search on the UKTI includes planning, construction, maintenance website or register to receive regular updates. and equipment; and, Specialist Expertise in New export events are added daily. project management, consultancy, financing and insurance. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & UK expertise in PPP is well recognized in the Medium Sized Enterprises (SMEs) to attend market and this is drummed up by support trade shows overseas. activities to key implementing agencies. Other activities, promoting UK private sector capabilities in the infrastructure sector are UKTI contacts also being finalized. These intend to pave the way for UK companies to enter the market to Rachel Gancia participate in the bidding process and/or tap Trade & Investment Manager supply chain opportunities in the identified British Embassy Manila and planned projects. Tel: +63 2 858 2260 Email: Beyond 2012 In the medium-term, apart from the identified sector-specific projects, a pipeline of related Derek Page opportunities is expected to emerge. This is Director linked to significant steps taken in the British Embassy Manila country?s open skies policy and the Tel: +63 2 858 2260 development of an integrated national Email: transport plan. Local private sector investments in air and construction for leisure, coupled with decisive government support eg release of budget for the rehabilitation of vital smaller airports and seaports, attest to the viability of opportunities that lie ahead. If you have any questions about opportunities in the local market, get in touch with the contacts listed at the end of this report. Business opportunities aimed at UK companies are added daily to the UKTI website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can search for opportunities by sector or country, or register to receive business opportunity alerts on a regular basis. UK Trade & Investment Sector briefing: Transport infrastructure opportunities in the Philippines Next steps - how UKTI can help British companies wishing to develop their business in the local market are advised to undertake as much market research and planning as possible in the UK. UKTI?s local team, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the local market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the local market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Transport infrastructure opportunities in the Philippines
Posted: 26 September 2011, last updated 26 September 2011

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