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Philippines' Transportation and Construction

The two largest projects are the $15 billion North-South Commuter Rail (NSCR) and the $7 billion Metro Manila Subway Project (MMSP).  U.S. companies can participate in Philippine railway projects by being a joint venture partner, subcontractor or goods supplier. 

To address the growing transportation problem, especially in Metro Manila, DOTr aims to increase the Philippines’ railway length from 47.8 miles in 2016 to 751.2 miles as well as the number of stations from 61 to 168 and the number of trains from 234 to 1,381 by 2028.  The Philippine Government is relying heavily on Official Development Assistance to finance these projects, with Japan accounting for 48% of the funding mix; Asian Development Bank (ADB) with 27% and China at 18%.  Public-Private Partnership (PPP) accounts for 6% and the Philippine government will fund 1% of the projects. 

The 12 railway projects and their funding sources are as follows: 

  • Japan International Cooperation Agency (JICA) – 2.4 mile LRT 2 East Extension (started operations in July 2021), 10.5 mile MRT 3 Rehabilitation and 22.4 mile MMSP
  • Asian Development Bank – 9.7 mile MRT 4
  • JICA and ADB – 91.3 mile NSCR
  • JICA and PPP – 7.3 mile LRT 1 Cavite Extension
  • China – 44.2 mile Subic-Clark Railway, 397 mile PNR (Philippine National Railway) Bicol, and 62.1 mile Mindanao Rail 
  • Philippine Government – 1.8 mile LRT 2 West Extension and Common Station (147,466 square feet concourse connecting LRT 1, MRT 3, MRT 7 and MMSP)
  • Public Private Partnerships account for – 13.7 miles MRT 7

The $15 billion NSCR is the single largest Philippine project to date and is also the largest commuter railway project funded by JICA.  The 91.3 mile rail project consists of three segments: the 23.6 mile PNR Clark 1 (Manila to Malolos City, Bulacan) funded by JICA; the 32.9 mile PNR Clark Phase 2 (Malolos to Clark) and the 34.8 mile PNR Calamba (Manila to Calamba, Laguna). JICA is funding the rolling stock and railway systems of PNR Clark Phase 2 and PNR Calamba, while ADB is financing the civil works.  PNR Clark 2 is the single largest ADB-supported infrastructure project.

As of December 2021, the Philippine government awarded a total of 39 contracts for the railway projects.  The contracts include consultancy services, civil works, electromechanical systems, rolling stock, rehabilitation and maintenance, supervision consultancy, public-private partnership, turnkey contract, project management and design-build.  

The Philippine government plans to award a total of 69 contracts by 2022.  Since only five contracts were awarded in 2021, awarding 30 contracts in 2022 is highly unlikely.  Bid documents for the design-build contractor for civil works, rolling stock and electromechanical systems for LRT-2 West Station, and design-build contractor for the Mindanao Railway are targeted. 

For JICA-funded contracts, U.S. companies should note that the lead should be a Japanese company. Non-Japanese companies may be a subcontractor if the 30% minimum Japanese content requirement is met. ADB-funded projects are open to U.S. contractors. China-funded contracts have 25% minimum Chinese content. Philippine-government funded infrastructure contracts have a 60%-40% Filipino-foreign ownership requirement. 

Tenders are posted at: DOTr (DOTr - Home), Philippine National Railways (Home (pnr.gov.ph)) and the Philippine Government Electronic Procurement System (PS-PhilGEPS) websites. Requirements for PPP projects are not posted on these websites. Interested suppliers may contact the companies directly.  Winning contractors may also be contacted directly.

For more information, please contact Commercial Specialist Bebe Montesines at Bebe.Montesines@trade.gov.

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