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EDSA CORRIDORMASS TRANSIT DEVELOPMENT OPTIONS
Project Brief for Her Excellency
President Gloria Macapagal Arroyo
November 2006
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Metro Manila Urban Transport
Integration Study (MMUTIS)by Pacific Consultants Inc.
1. US$ 5.0 million JBIC study thatwas completed in 1999 became thefoundation for highway and railprojects in Metro Manila
2. MMUTIS established the 7 majortraffic corridors of Metro Manila.
3. Traffic corridors are consistentwith the location of Commercial,Business and Residential Districts
of Metro Manila.
4. EDSA Corridor is the backbone ofpassenger traffic for Metro Manilawith 600,000 bus ridingpassengers per day as per 1996-1997 surveys
North Triangle
Cubao
East Wood
OrtigasAyala
Fort Bonifacio
Major Metro Manila Transport Corridors
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North Rail
NorthEspresswayCorridor
LRT-4Commonwealth-Espana Corridor
LRT-2
Aurora Corridor
MRT-3
EDSA Corridor
South Rail
SouthExpresswayCorridor
LRT-1Extension
Aguinaldo
Corridor
LRT-1
Taft Corridor
The Metro Manila Urban
Transport Integration StudyIdentified the Following LRT /
MRT Projects forImplementation by 2015
LRT 1 Existing
LRT 1 Extension to CaviteFor development
MRT 2 Existing to beextended to Masinag
MRT 4 to BatasanNovaliches
MRT 3 Phase I Existing
MRT 3 Phase II to Caloocanfor development
Northrail - Southrail
Metro Manila Mass Transit Network (MMUTIS)
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Projects Doable to 2010
North Rail
NorthEspresswayCorridor
LRT-4Commonwealth-Espana Corridor
LRT-2
Aurora Corridor
MRT-3
EDSA Corridor
South Rail
SouthExpresswayCorridor
LRT-1Extension
Aguinaldo
Corridor
LRT-1
Taft Corridor
The following Projects if
immediately implementedcan be targeted forcompletion by 2010:
1. MRT 3 Phase II to Caloocan
2. Northrail to Malolos (Chinesefunding)
3. Southrail (to CalambaKorean
funding)
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DOTC engaged in 2006 the
services of Louis Berger forthe North Av. toCaloocan Link Project
1. Study output confirms thatEDSA corridor as mostsuitable for this Project
2. Study projects a ridership of600,000 passengers a dayfrom North Avenue toCaloocan
3. The Louis Berger dubbedEdsa North Transit followsthe exact alignment of MRT 3Phase II
4. North Rail and LRT-1 arefeeder lines to the EDSACorridor.
RooseveltBalintawakMonumentoNorth Rail
Gen. Malvar Kaingin Bansalangin
North Avenue
Agham
Quezon Avenue
North Rail West
North Ave. - Caloocan Study by Louis Berger
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Northrail Ridership Traffic
demand forecasts haveconfirmed:
1. 219,000 passengers per dayin 2009 with a completedinter-connection to aseamless EDSA corridor.
2. 80,000 (more than 63% drop)without an inter-connection toa seamless EDSA corridor
First Conclusion
The EDSA corridor trafficDemand needs to be addressed ASAPas discussed by MRT 3 Phase II(identified by MMUTIS) and / or EDSANorth Transit (identified by LouisBerger) as this will greatly affect theNorthrail traffic demand.
RooseveltBalintawakMonumentoNorth Rail
Gen. Malvar Kaingin Bansalangin
North Avenue
Agham
Quezon Avenue
North Rail West
Impact of North Av. - Caloocan Link to Northrail
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Main Alternatives
1. Construction of a seamlessMRT 3 Phase I to MRT 3Phase II using the original
MMUTIS concept
2. Construction of the Stand-Alone EDSA North Transitproject on the same corridoras envisioned by LouisBerger
RooseveltBalintawakMonumentoNorth Rail
Gen. Malvar Kaingin Bansalangin
North Avenue
Agham
Quezon Avenue
North Rail West
Technical Options for North Av.Caloocan Project
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Seamless MRT-3 Development Options
Option 1 1. All Elevated from EDSA-North Avenue to EDSA-Monumento
2. US$ 220 million project cost
3. Can be completed in 18 to 24 months
Option 2 1. All elevated from EDSA-North Avenue to Samson-North Rail
2. US$ 410 million project cost
3. Can be completed in 24 to 30 months
Option 3 1. Combined Elevated and tunnel from EDSA-North Avenue to Samson-North Rail
2. US$ 490 million
3. Can be completed in 30 to 36 months
Option 4 1. Combined elevated and tunnel from Quezon Blvd-Agham Road to Samson-North Rail West.
2. US$ 575 million to US$ 680 million project cost
3. Complicated additional two way double deck guideway and station on EDSA-North Avenue
4. Additional Depot required for ENT as against no addl depot for seamless
connection (US$ 40 to 50 million cost differential)
Stand- Alone ENT Project with Separate Transfer Station in EDSA-North Avenue
Comparative Analysis Seamless / StandAlone
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Seamless MRT-3 Project Construction Periodcompared to Solicited BOT Project plus ConstructionPeriod
Seamless MRT-3 Project
Implementation TimeConstraints
1. Approval of Seamless ProjectPossible under the ContiguousProject Site of the GPRA (requiresDOJ Opinion)
2. ICC-NEDA Upon submission of theDOJ Opinion approves BTContract (90 days)
3. Financial Closure 12 months
4. Project Construction Period AllElevated 18 to 36monthsdepending on variant with Phase I(North to Monumento) to beopened latest 1stQtr. 2010
Approval Process for Solicited BOT Project(estimated total processing time: 380-425 calendar days minimum)
Prepares PQ Documents
30 days each for the technical andfinancial evaluation (60 days)
Franchise shall be automatically granted.Issuance of Notice to Proceed -within 15calendar days from approval of contract.
90 to 120 days to prepare bid proposal
Private Sector Government Time Frame
Contract Award
Evaluation of Bids
(Two Envelope System)
Receipt and Opening
of Bids
Pre-Bid Conference/
Bid Preparation
Pre-qualification of
Bidders
Advertisement/Invitation
to Pre-qualify (PQ) & Bid
Approval By
Appropriate Body
Project ID and
Preparation
NEDA ICC Clearance
of Contract
Bidders given 30-45 days to submit PQ
documents from last date of advertisement
Disapproved
Approved
Prepares Bid Documents
Receives Notice of Award
Implements Project
Estimated Total ProcessingTime: 380-425 calendar days
ICC to act on the contract -15 working days (20days)
Approve Notice of Award (NOA) within 7 daysafter ICC Clearance
1 day for Bid Submission
Time frame in shaded areas are best estimates only.Working days converted to calendar days by multiplying with a factor of 1.33.
Time frame excludes allotment of compliance with conditions for contract award.
STOP OR IF WARRANTEDPROPOSAL IS RECOMMENDEDFOR NATIONAL GOVERNMENT
FUNDING
Contract Approval
Contract
Implementation
30 working days (40 days)
Once every week for 3 consecutive weeks(21 days)
Submits PQ Documents
Submits Bid Proposal & Bid
Bond
Signs contract after compliance
with all conditions of thecontract/Posts Performance Bond
Issuance of NOA to winning bidder-7 days fromdate of approval of NOA.
Contract execution -within 7 days from receipt of(NOA)/Approval of Contract which shall be within15 days from compliance with all conditions of thecontract award.
30 days to review documents from lastdate of advertisement
Decision to award 30 days from date ofcompletion of financial evaluation
BOT Approval process = 425 days plus 468days financial closure and 1080 days ProjectConstruction. Total Project Implementation
Period of 1,973 days or 6.5 years.
BOT Process and ImplementationTime Constraints for ENT Project
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Summary of the Conditions of the NEDA BoardApproval
Conditions Status
Proposed project cost may bereduced by an indicat ive amoun t of
around US$ 7.8 million.
The Total Project Cost was reducedfrom US$ 214 million to US$ 191.6million, which represents a savingsof around US$ 22.4 million
MRTCs return on equity should be aminimum of around 11 percent.
DOF has no objection and hasfavorably considered the proposedstructure of the ROE.
DOTC shall clarify to the ICCSecretariat th e MRTC evaluation
process not ing that the b idd ing
con ducted by MRTC included the
LRVs and secure DOJ Opinion in
compl iance with Execut ive Order
(EO) 109.
The compliance of the MRT-3 Phase IIProject under EO 109 is likely to be afavorable opinion with the DOJ Legal
Opinion No. 25, S 2002 and the DOJMemorandum dated November 6,2002.
In a letter to the DOTC dated October9, 2002, MRTC has clarified to theDOTC the evaluation process during
the bid for the EPC.
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Summary of the Conditions of the NEDA BoardApproval
Conditions Status
DOTC shall ensure the inclusion of thebud getary requirements of the project ,
inc ludin g the level of the subs idy
requir ed based on th e NEDA traff ic
forecast and shal l be with in DBM
prescribed ceilings.
Based on our meeting with you at theDOTC last September 23, 2002,Assistant Secretary George Esguerrainformed the DOTC panel that thisrequirement has been submitted to theICC-TWG in June 2002. In this regard,
this NEDA Board requirement has beenfully complied with.
Remove references to the acquisitionof L ight Rail Vehicles (LRVs) from th e
Supplemental Agreement. Without
prejudice however, should actual
demand exceed forecast and just i fy
therefore, addit ion al LRVs, the DOTC
may submit a new proposal for the
acquis i t ion of addi t ional LRVs for ICC
approval.
Average ridership of about 350,000passengers per day was reached inSeptember 2002.
An option for the acquisition ofadditional LRVs when ridershipreaches 350,000 passengers per day(triggering event) and finalise anagreement 90 days from the date of thetriggering event.
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The End
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Comparative Project Cost of Seamless MRT-3 Project Options andStand Alone ENT Project
(48 additional trams separate from the ongoing procurement of 48 trams)
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Cummulative Revenue Collection less Expense(PhP 17.50 and PhP 25.00 Average Fare Rate)
Average Fare PhP 17.50 Phase 1 Only Option 1Seamless MRT-3all elevated toMonumento
Option2Seamless MRT-3 all elevated toNorth Rail
Option 3Seamless MRT-3combinedelevated & tunnelto North Rail
Option 4Stand alonePhase 1 & ENT(Phase 1 & LRT1Ext to North Aveand North RailExt to North Ave)
Cumulative Total FareboxRevenue Collection less
Expenses
(1,280,998.60) (431,460.78) (691,389.62) (714,036.15) (2,149,807.89)
Average Fare PhP 25.00 Phase 1 Only Option 1Seamless MRT-3all elevated toMonumento
Option2Seamless MRT-3 all elevated toNorth Rail
Option 3Seamless MRT-3combinedelevated & tunnel
to North Rail
Option 4Stand alonePhase 1 & ENT(Phase 1 & LRT1Ext to North Ave
and North RailExt to North Ave)Cumulative Total FareboxRevenue Collection lessExpenses
(746,890.52) 490,762.80 230,833.96 208,187.43 (1,592,412.88)
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Seamless MRT-3 System and Stand alone Deficit Neutral Cashflow
(PhP 17.50 average fare rate)
Surplus/Deficit Cashflow of
the four project options:
Phase 1 as a stand alonesystem will not be adeficit neutral cash flowfor the government evenafter 2025.
Seamless MRT-3 usingoption 1, 2 & 3 will be adeficit neutral cash flowfor the Government by2020.
Phase 1 and ENTsystems will be not bedeficit neutral even untilafter 2025.
PhP 17.50 average fareis 50% less than thecomparable aircon busfare.
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Seamless MRT-3 System Deficit Neutral Financial Cashflow(PhP 25.00 average fare rate)
Surplus/Deficit Cashflowof
the four project options:
Stand alone Phase 1 willbe deficit neutral cashflow for Government by2021
Seamless MRT-3 usingoptions 1,2 & 3 will be a
deficit neutral cash flowfor Government as earlyas 2015
Stand alone Phase 1and ENT systems will bea deficit neutral cashflow for Government by2022
PhP 25.00 average fareis 20% less than thecomparable aircon busfare.
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Ridership and Financial Impact of a Seamless MRT-3 System
and Non-seamless MRT-ENT System
Historically, EDSA Corridor provides a seamless public conveyance system fromplaces of residences to the Commercial Business Districts (CBD) of Metro Manila.
MRT-3 Soft Opening from North Avenue to Buendia
A disconnected public conveyance system resulted in a maximum 6% utilization of the450,000 passenger a day line. (even after reducing average fare from PhP 18.50 to PhP12.50)
Number of passengers rose from 30,000 passengers a day to 120,000 passengers a dayafter the following month of the opening of a seamless public conveyance system fromEDSA- North Avenue of northern Metro Manila and the EDSA-Taft of southern MetroManila to the CBDs of Metro Manila.
North Rail Study in 1999
Ridership from North Rail Caloocan to Malolos of 1.5 million passenger is highly dependent
on a connection to a seamless means of conveyance from North Rail Caloocan to thecommercial business district of Metro Manila.
Without the connection to a seamless means of conveyance to the CBDs of Metro Manilathe North Rail risdership will fall to 440,000 [passengers a day.
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Legal Resolution to DOJ 10 series 2003 and DOJ 50 series 2004which does answer the Query of ICC-NEDA
Legal basis for the Classification of the Phase I as an Ongoing Project
DOJ Opinions 10 and 40 Did not consider the fact that the government and MetroRail Transit Corporation (MRTC) started negotiationsfor Phase II began lastApril 22, 1996, prior to the execution of the BLT Agreement on August 28, 1997which prior to the expiry of the 25 year BLT Agreement. The only condition fornegotiated, ongoing and contiguous project under section 4 of PD 1594 andSection 53 (d) of the GPRA is that negotiations commence before expiry oforiginal contract.
As Phase II is merely an extension of Phase I, the scope of worksof Phase II issimilar or related to that of Phase I. The technical specificationsof Phase II arethe exact same technical specifications of Phase I.
The originalcontract, the BLT Agreement, is the result of a competitive bidding.As affirmed by the Supreme Court in Tatad v. Garcia (G.R. No. 114222, April 6,
1995), the Project was validly bidded out and awarded.
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DOJ 25 series 2002 and DOJ Memorandum to Her Excellency DatedNovember 10, 2002 answers the Query of ICC-NEDA
Phase II is adjacent to an ongoing project is consistent with provisions of EO 109-A, Section 4 of
PD 1594and Section 53 (d) of the General Procurement reform Act MRT-3 Project is a Solicited and negotiated BOT design, construct and maintain project for 25 years.
Phase II is an extension of an on-going contract and owner of the ultimate design of the EDSA MRT-3 Phase I System.
DOJ Legal Opinion 25 s. 2002 and DOJ Memorandum dated November 6, 2002 to Her ExcellencyGloria Macapagal-Arroyo noted that MRT-3 Phase II can be undertaken through a Supplemental
Agreement.
Effectiveness of Section 2.6 of the BLT Agreement Section 2.6 has not expired based on the contemporaneous and subsequent acts between DOTC
and MRTC that led to the 2ndacceptance and 2ndendorsement to the ICC-NEDA by DOTC of theMRT-3 Phase II Supplemental Agreement.
This is noted by DOJ Legal Opinion 25 s. 2002 based on the BLT agreement and Article 1371 of RA386 (Civil Code).
Notwithstanding the above: PD 1594 and the GPRA states that additional works may be undertaken pursuant to an extra work
order or supplemental agreement.
BOT Law allows direct negotiation of contracts.
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Comparative South East Asian BOT Developed LRT projects
Index of
TrafficStress onNetwork
Capacity ActualRidership
Concession Type
Status of Lenders Status ofPrivate SectorInvestors
Cost (US$(million) perKilometer
Cost per
KilometerBenchmark(World Bank)
Malaysia 1.6 Monorail 200,000 60,000 BOT Updated payment Nationalized 36.00 30-75
Putra 500,000 170,000 BOT Updated payment Nationalized 53.00 33-75
Star 600,000 140,000 BOO Updated payment Nationalized 33.00 30-75
Philippines 13.11 LRT-1 350,000 350,000 GOCC Updated payment GOCC 40.00 27-66
LRT-2 450,000 200,000 GOCC Updated payment GOCC 57.00 33-75
MRT-3 450,000 450,000 BLT Updated paymentRestructuring
undernegotiation
40.00 27-66
Thailand 4.45BTSC(SkyTrain)
600,000 400,000 BOTLenders were
discounted by asmuch as 40%
Restructuringundernegotiation
155.00 60-180
BMCL(BlueLine)
600,000 250,000 BOTLenders were
discounted by asmuch as 40%
Restructuringundernegotiation
59.00 30-75
Source: Best Practices For Private Sector Investment In Railways, TERA Internatonal Group, INC. (TERA). Asian Development Bank and the World Bank Group, March 2006
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Additional Depot and a Separate North Avenue Station Additional cost of US$ 50 million for an additional depot and US$ 5 million for a separate North
Avenue Station.
No Inter-connection MRT-3 Phase I is owned by MRTC which owns the plans and rights over the whole MRT-3 Project. Projected increase in ridership and revenue collection will not be realized because of a disconnected
public means of conveyance from the places of residences and the CDBs of Metro Manila. The LRT-1 electro-mechanical system is not compatible with the electro-mechanical system of MRT-3 LRT-1 and North Rail proposed extensions to EDSA-North Avenue does not consider the DOTC
Mass Transit Master Plan, DPWH flyover projects and DENR requirements.
Higher Fares for the Caloocan, Malabon, Navotas and Valenzuela (CAMANAVA) area,Northern Quezon City, and Bulacan Residents
Riders from CAMANAVA area, North Quezon City, and Bulacan will be paying fare twice , to be ableto go to places of work in the CBDs along EDSA.
Additional ROW Requirements An independent system that will be connected to LRT-1 will require acquisition of 2,500 sq.m. or PhP
200 million ROW in the Monumento area. .
Financially and economically not feasible Financial feasibility is questionable due to low ridership, reduced revenue collection and higher project
cost (study done by LRTA,s Japanese Technical consultant and DOTCs French Technicalconsultant).
Additional Concerns Over a Disconnected MRT3-ENT, LRT-1 Extension toNorth Avenue and North Rail Extension to North Avenue Project Options
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