In this special report, Jaime Bautista, Secretary of the Department of Transportation, outlines the Philippine government’s initiatives to elevate the country’s transport industry to global standards. He highlights the significant contributions of Japan, particularly through the Japan International Cooperation Agency (JICA), in advancing key infrastructure projects. Secretary Bautista discusses the strategic vision for the transportation sector, emphasizing ongoing and future projects aimed at enhancing the country’s railways, airports, and maritime safety.
Bridges: Can you outline the strategies and initiatives undertaken to transform the Philippine transport industry to meet global standards, particularly focusing on advancements within the railways sector?
Bautista: Pursuant to the marching orders of the President, DOTr will bridge the gap from where we are now towards the vision for a transportation sector where transportation services are comfortable, accessible, safe, and affordable through DOTr’s four transportation sectors. DOTr will BUILD BETTER and BUILD MORE by (1) Continuing and finishing projects from the previous administration, (2) Starting and finishing projects by the current administration, and (3) Starting and passing projects to the next administration
Pursuant to the marching orders of the President, DOTr will bridge the gap from where we are now towards the vision for a transportation sector where transportation services are comfortable, accessible, safe, and affordable through DOTr’s four transportation sectors.
Jaime Bautista, Secretary of the Department of Transportation
DOTr will BUILD BETTER and BUILD MORE through:
Better Project Identification, Prioritization, and Preparation, which involves the stocktaking and gap analysis of existing master plans, updating and developing new master plans, prioritizing master plan-identified projects, and more robust project preparation across all of DOTr’s four (4) operating sectors;
a Broader and More Diversified Funding Strategy, which involves diversifying into PPP funding, both for the build and the O&M components, diversifying of financing partners, and broadening funding sources; and
Better Project Implementation Strategies, which involves implementing projects that are characterized by continuity, a strengthened institutional capacity, better contracting and procurement strategies, and reinforced by environmental, social, and governance safeguards.
In the near term, DOTr will
- continue implementation of its ongoing projects
- develop and implement multiple solicited and unsolicited financially-viable Airport PPP projects
- implement prototype Local Government Unit (LGU)-specific road transport projects that can be later rolled out to other LGUs
- develop and implement Railways PPP projects that do not require fiscal space until completion of the project, and
- implement other projects geared towards maritime safety and security enhancement, and maritime disaster response.
In the medium term, after committed fiscal space has decreased leading to more uncommitted fiscal space, DOTr will
- implement more Railway Projects, but involving a diversified funding mix including through PPPs;
- undertake Coast Guard Modernization;
- replicate its prototype LGU-specific road transport projects for other LGUs involving possible LGU co-financing; and
- implement social and tourism ports, including farm-to-market ports.
How has Japan’s support through JICA contributed to the advancement of key transport infrastructure projects in the Philippines, such as the North-South Commuter Railway and the Metro Manila Subway?
To date, JICA has provided concessional loans for a total of JPY 1,315.2 Billion (PHP 571.55 Billion) to the Philippines for 9 of its key infrastructure projects (New CNS/ATM, New Bohol Airport Construction, Maritime Safety Capability Improvement Project (“MSCIP”) Phases I and II, LRT-1 Cavite Extension, LRT-2 East Extension, MRT-3 Rehabilitation and Maintenance, Metro Manila Subway Phase I, and North-South Commuter Railway System). Additional JPY 72.84B will be provided for the upcoming MSCIP Phase 3, which will involve the acquisition of additional five (5) units 97-meter multi-role response vessels (MRRVs).
For the Metro Manila Subway Phase I, JPY 357.84 B (PHP 169.59 B) concessional loan has been provided by JICA through Loan Agreements PH-P267 signed on 16 March 2018, PH-P275 signed on 10 February 2022, and signed on 26 March 2024.
For the North-South Commuter Railway, JICA provided a total of JPY 786.21 B (PHP 325.29 B) concessional loan through Loan Agreements PH-P262 (27 Nov 2015), PH-P270 (21 Jan 2019), PH-P276 (09 Feb 2023), and PH-P277 (09 Feb 2023).
To date, 33 contracts funded by JICA have been awarded amounting to a total of around PHP 690 billion. Among the awarded contracts are:
- 9 contracts for the NSCR;
- 7 contracts for the MMSP; and
- 3 contracts for the MRT-3 Rehabilitation
On top of these, JICA is also providing technical assistance to DOTr in various railway initiatives, such as the Feasibility Study of the North-South Commuter Railway – New Clark City Extension and establishing the Philippine Railways Institute (PRI), where the Government of Japan provided ah railway simulator through grant.
Could you elaborate on the role of JICA in funding the upgrade of the Philippines’ Communication, Navigation, and Surveillance/Air Traffic Management System, as well as the construction of the Bohol-Panglao International Airport?
The New Bohol International Airport was financed through Loan Agreements PH-P256 (27 March 2013) & PH-P268 (08 October 2018) with JICA for a total loan amount of JPY 15.16 B (PHP 7.00 B). This construction and sustainable environment protection project comprised all civil works, utility works, building works, together with the supply and installation of radio navigation aids, ATS facilities, meteorological facilities, and aeronautical ground lighting.
The New Communication, Navigation, and Surveillance/Air Traffic Management System PH-P228 (signed on 28 March 2002) is another project supported by JICA for a total loan amount of JPY 22.05 B (PHP 9.59 B). This cooperation built a satellite-based communication, navigation, and surveillance system for aircraft flying between airports throughout the country. etc. Through this, the country’s rapidly increasing demand for air transportation due to economic growth and improve the safety, reliability, and efficiency of the air transportation system is hoped to have been addressed.
How do you see the partnership between the Philippines and Japan evolving in the transport sector in the coming years, and what opportunities do you foresee for further collaboration? Are there any developments in the maritime sector worth noting?
As far as DOTr is concerned, JICA is the largest funding partner of DOTr (as of 2022) occupying 55% of the Agency’s ODA portfolio. Underscoring the importance of robust project preparation and development to project success, we see our partnership with JICA to continue to solidify and expand.
Underscoring the importance of robust project preparation and development to project success, we see our partnership with JICA to continue to solidify and expand.
In recognition of the substantial resources needed to prepare a sufficiently robust, appropriately scaled, and credible Master Plan that will underpin hundreds of billions of investments in additional railway infrastructure in the near future, DOTr has collaborated with JICA last August 2023 for the 30-Year Railway Master Plan for the Greater Capital Region which will also be co-funded and co-implemented together with the Asian Development Bank. This co-funding and co-implementation of this Railway Master Plan for GCR will also prepare the ground for eventual downstream project financing from the DOTr’s two largest development partners, JICA and ADB.
DOTr will also start working on JICA on the Capacity Development of Public Utility Vehicles of Metro Manila and its Adjoining Areas.
In the Maritime Sector, there is an ongoing development of a Philippine Coast Guard Support Facility in Subic Bay Area. GoJ has also provided PCG with Coastal Radar, and GoJ’s grants PCG Satellite Data Communication System and PCG Generators or its Vessels are now being processed. The PCG National Headquarters Building Rehabilitation and Expansion with JICA is also being processed.
The Management System for the Operations and Maintenance of PCG Vessels and other various Maritime Projects for the Modernization and Capabilities Enhancement of the PCG are currently being explored.
As the Philippines celebrates significant milestones in transport infrastructure development and cooperation with Japan, what message would the DOTr like to convey to stakeholders and the public?
The Department of Transportation, its Aviation, Maritime, Rail, and Road Sectors, and its 19 Attached Agencies and Government Corporations, extend warmest appreciation for Japan’s unwavering commitment to assist the Philippines in advancing its economic agenda.
The significant milestones in the transportation sector cannot be realized without your support. The DOTr looks forward to further deepening and bringing to even higher heights our two Nations’ bilateral Strategic Partnership in the field of high-quality large-scale infrastructure development.
