NSCR O&M contract seen attracting strong interest from bidders — DoTr

THE Department of Transportation (DoTr) said it is confident the operations and maintenance (O&M) contract for the North-South Commuter Railway (NSCR) will generate strong interest, with five prospective bidders signifying their intent to bid so far.

“There were companies that have paid the participation fee to bid; I think about five or more. We are on track on this and (we are) confident that companies will bid,” Transportation Undersecretary Timothy John R. Batan told BusinessWorld.

Last week, the Transportation department said potential bidders attended the pre-bid conference for the project, which included San Miguel Corp. and the Lopez group’s construction company First Balfour, Inc.

Foreign companies that attended the pre-bid conference were Tokyo Metro Co., Ltd., Japanese rail operators JR East and JR West, as well as Mitsubishi Corp., and  Sumitomo Corp.

The DoTr said that French transport companies Group S.A., RATP Group, Keolis S.A., and Alstom also attended the pre-bid conference.

“The President giving clearance for (public-private partnerships to bid for) the operations and management of the NSCR shows the administration’s trust in private firms to handle the country’s biggest railway system. The high turnout also signals investor confidence,” Transportation Acting Secretary Giovanni Z. Lopez said in a statement.

According to the instructions to prospective bidders, the final O&M concession agreement will be released on April 30, 2026. Bids will be accepted by May 29 at 11 a.m., according to the PPP Center.

To qualify for the project, the bidder must have a minimum net worth of P114.65 billion or its equivalent in foreign currency as of the 2024 financial year. For consortia, the lead member of the group must have an equity interest of at least 34% of both voting and non-voting shares of the O&M concessionaire, the DoTr said.

Bidders including consortium members or affiliates must include at least one entity with 10 years of experience in rail operations, specifically in managing a rail line that handles at least 45,000 passengers per hour in each direction.

At least one entity must have eight years of experience in maintaining railway infrastructure and systems, including the use of a computerized maintenance management system, and another must have eight years of experience in track and civil infrastructure maintenance.

The NSCR O&M deal will cover 15 years from the signing date of the contract, the DoTr said.

The 147-kilometer NSCR will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. The P873-billion project is co-financed by the Japan International Cooperation Agency and the ADB. It will have 35 stations and three depots. 

Full operations are expected by January 2032; partial operations on the Malolos to Valenzuela segment are projected by December 2027; operations on the Clark to West Valenzuela segment are expected by October 2028.

“To ensure convenient, efficient and safe management and operations of NSCR, we need to have a qualified and experienced operator,” Mr. Batan said in a statement last week.

Rene S. Santiago, an international consultant on transport development and former president of the Transportation Science Society of the Philippines, said companies are weighing the potential advantages of participating in the bidding.

He said companies may be more cautious about joining rail projects, considering Metro Pacific Investments Corp.’s  (MPIC) announcement that it is planning to divest its stake in Light Rail Manila Corp. (LRMC), the operator of Light Rail Transit Line 1 (LRT-1),

“All attendees know the hurdles, and are keen to know if it is worth their while. Can the government be trusted to live up to their end of the bargain, when it has not in LRT-1?” Mr. Santiago said.

MPIC has said that it is considering divesting its 35.8% stake in LRMC due to continued losses, with ridership yet to recover from the pandemic.

In November, LRMC said that it is gearing up for a financial rebound, citing renewed shareholder support and fresh talks with the Transportation department for the rebalancing of its concession agreement. — Ashley Erika O. Jose