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Table of Contents
11Improving Market Access & Connectivity
11.1Rapidly Expand Capacity of Secondary International Airports
21.1.1Subprogram for Upgrading Secondary International Airports
41.1.2.Increasing International Tourists at NAIA
51.2Expand Connectivity between Philippines and its Key Growth Markets
61.1.2Renegotiating Air Service Agreements with Key Growth Market Markets
71.1.3Reducing International Air Operations Costs in the Philippines
71.1.4Simplifying Border Formalities /Procedures for Key Growth Markets
81.3Implement a Strategic Access Infrastructure Program between Secondary International Airports and Strategic Destinations
91.3.1Design and Implementation of Strategic Access Infrastructure Subprogram
131.3.2Improving Sea and Road Transportation Services
1 Improving Market Access & ConnectivityAs noted in Section 3.5, the stakeholders identified three programs to improve market access and connectivity especially for international tourists. These are:
Rapid upgrading of existing international airports to handle at least 3.1 million additional international arrivals (i.e. 6.2 million international passenger movements) and well as accelerating existing programs to strengthen compliance with international air regulations;
Adoption of policies to facilitate international airline transportation services and operations; and
Improving strategic air, sea and road infrastructure linkages and transportation services between the 8 international airport cluster destinations and the 13 strategic cluster destinations without international gateways
The details of cost estimates and cost assumptions of each program, its subprograms, and projects are provided as an attachment to this Appendix. The action plan for each of these programs is set out below. 1.1 Rapidly Expand Capacity of Secondary International Airports Description of the program
Given the limited capacity of NAIA to handle increased international tourism flows due to runway congestion problems that will be difficult to resolve, the need to reduce the cost of traveling to Philippine destinations, and the need to spread the benefits of tourism more widely, it is necessary to rely increasingly on the secondary international airports i.e. Clark (MDIA), Mactan-Cebu (MIA), Davao, Puerto-Princesa, Iloilo, Laoag, and Zamboanga. EO 29 designating open skies for secondary international airports, the planned increased investment in international marketing; and of other measures designed to facilitate the number of international tourists to the Philippines will do much to drive more traffic to these airports. However, as noted in a review of the current situation at these airports, their capacity to handle increased international air operations and tourist arrivals is severely constrained by city and air side infrastructure constraints that will also have to be addressed if these are to function as intended. In this context, the main objective of this program is to rapidly increase their capacity; and to undertake improvements at NAIA to decongest its main runway and Terminal 1 which is the subject of increasing criticism and complaints by international tourists. The program has two subprograms:
Rapid upgrading and/or expansion of secondary international at Clark, Mactan-Cebu, Davao, Pueto-Princesa, Iloilo, Laoag, and Zamboanga International Airports.
Facilitate increased international tourists through NAIA
Objectives
The objective of these subprograms is to position the Philippines to maintain and increase its current international market growth momentum and improving the arrival and departure experience to a more favorable level.
Proposed Subprograms and Projects
1.1.1 Subprogram for Upgrading Secondary International Airports
Description and ProjectsTime Frame
The secondary international airports located at Clark, Mactan-Cebu, Davao, Pueto-Prinsesa, Iloilo, Laoag, and Zamboanga are currently unable to handle rapid international tourism growth because of limitations on: (a) city side aspects such as poor access, lack of parking, and inadequate support services; (b) air side constraints related to runway/taxiway/parking apron limitations, air navigation system imitations, and fire and rescue service limitations; and (c) airport management and operations limitations. The subprogram has 8 projects:
Project 1: Upgrading of Clark International AirportThis project comprises the following tasks:
Improve access road, day and long-term parking and and support services as part of Terminal 1 expansion and new terminal development including development of airport hotels (1x300 room 4 star, 2x300 rooms 3 star, and 2x150 rooms economy hotel Complete Terminal 1 expansion to 5 m pax p.a. and implement planned construction of Budget Carrier Terminal project for 10 m pax p.a. Proceed wirh construction in Quezon City of a City Check-in facility and airport bus transfer terminal. Complete upgrading of CIQS facilities under Phase 2 of the Terminal 1 airport expansion program. Complete upgrading under Phase 2 of the Terminal 1 airport expansion program. Complete upgrading of fire and rescue services under Phase 2 of the Terminal 1 airport expansion program. Further strengthen capacity of DMIA to market the airport to schedule, charter and budget carriers.Project 1.
Starting date:
Immediate with completion by December 2012
Project 2: Upgrading of Mactan - Cebu International AirportThis project comprises the following tasks:
Urgently improve capacity to handle multiple wide body aircraft arrivals and departures at existing international terminal by rationalization of existing office and commercial space and arrangements for check-in counters to: (i) provide 2 additional gates, (ii) increase the number of check-in counters, and (iii) increase baggage handling and queuing space. Proceed with plans to construct a 10 million-passenger capacity Low Cost Carrier Terminal.
Construct 2 new 3,000 x 50 m taxi-ways to facilitate aircraft movements
Further strengthen capacity of MIA to market the airport to schedule, charter and budget carriers.Project 2.
Starting date:
Immediate with completion by December 2012
Project 3: Upgrading of Davao International AirportThis project comprises the following tasks:
Improve city-side access road, parking and air operations and ground transportation support services by immediately reverting to the proper vehicle drop-off and pick up arrangements, and ensuring effective integration of the three security services (Airport, PNP, and Military)
Immediately decongest passenger-handling capacity in the existing departure area by rationalizing office and commercial space to increase the number of check-in counters and queuing space. Implement master plan to expand the international terminal by 2 gates and dedicate 4 gates for domestic air operations with flexibility to use international gates as required. Expand CIQS facilities as required
Expand parking aprons for terminal expansion and work on acquiring land to construct a 3,000 m x 50 parallel taxiway
Conversion to Airport Authority that includes marketing of airport to carriers as part of its charterProject 3.
Starting date:
Immediate with completion by December 2012
Project 4: Upgrading of Iloilo International AirportThis project comprises the following tasks:
Improve city-side airline operations and ground transportation support services
Renovate the existing terminal space to allow flexible use of 2 gates for international air operations including provision of dedicated CIQS and baggage belts.
Include CIQS facilities in rationalized terminal
Increase ramp space to facilitate parking of international aircraft and aircraft not using gates
Conversion to Airport Authority that includes marketing of airport to carriers as part of its charterProject 4.
Starting date:
Q1 2012 with completion by December 2013
Project 5: Upgrading of Puerto-Princesa International AirportThis project comprises the following tasks:
Improve access road, parking and air operations and ground transportation support services including development of airport hotel (1x250 room 3-4 star convention hotel)
Implement current terminal renovation plans and implement construction of new international terminal by 2015
Provision of permanent CIQS facilities in renovated terminal
Realign tax-way entrance by expanding the ramp area
Upgrading of Fire and Rescue Equipment to handle international airline operations
Conversion to Airport Authority that includes marketing of airport to carriers as part of its charterProject 5.
Starting date:
Q1 2012 with completion by December 2013
Project 6: Upgrading of Laoag International AirportThis project comprises the following tasks:
Improve access road and parking areas. Provide public transportation services from a designated point outside the terminal to Laoag City
Implement current terminal improvement program focusing on increasing international passenger arrival and departure handling capacity
Provision of permanent CIQS facilities
Upgrade of Fire and Rescue Equipment as required by regulation
Conversion to Airport Authority that includes marketing of airport to carriers as part of its charterProject 6.
Starting date:
Q1 2013 with completion by December 2014
Project 7: Upgrading of Zamboanga International AirportThis project comprises the following tasks:
Improve city-side access road, parking and air operations and ground transportation support services
Implement current programs to improve terminal facilities
Conversion to Airport Authority that includes marketing of airport to carriers as part of its charterProject 7.
Starting date: Q1 2013 with completion by December 2014
Lead ResponsibleStrategic Partners
DOTC/CAAP/Airport AuthoritiesPrivate sector stakeholders
Destinations for Implementation
NP-3-Central Luzon Clark), CP-6-Central Visayas (Mactan-Cebu), SP-6-Davao Coast & Hinterland (Davao), CP-5-Western Visayas (Iloilo), CP-4-Palawan (Puerto-Princesa), NP-2-Laoag-Vigan (Laoag), and SP-5-Zamboanga peninsula (Zamboanga).
Estimated Cost (PhP 000)Potential Financing Sources
Project 1: 154,000
Project 2: 1,500,120
Project 3: 84,270
Project 4: 82,270
Project 5: 146,150
Project 6: 217,120
Project 7: 105,500DOTC/CAAP/Airport Authority
DOTC/CAAP/Airport Authority
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
DOTC/CAAP/Airport Authority (consider private sector funding and operations)
1.1.2. Increasing International Tourists at NAIA
Description and ProjectsTime Frame
NAIA is a critical link between the Philippines and its key international markets and it is important to ensure that it has the capacity to increase the volume of international arrivals to Metro Manila and other strategic cluster destinations in the Philippines. Given the current situation at NAIA, including existing initiatives already announced by CAAP/NAIA, this project sets out additional initiatives that could be taken to improve the airports international tourist passenger volumes over the next five years. The subproject involves two projects:
Project 1: Improving Physical Facilities at NAIAThis project comprises the following tasks: Complete renovation of arrival and departure arrangements at Terminal 1.
Complete renovation of Terminal 1 and minor renovation of Terminal 2 giving priority to:
Increasing the number of check-in counters and queuing space, public toilet,
Rationalizing office and commercial space in the departure area; and
Increasing the number of immigration and customs counters in the arrival hall.
Consider constructing a parallel taxiway between Runway 1331 and the old Nayong Pilipino property to provide a new taxiway link between Terminal 3 and 2, link the four terminals, and free up runway space.
Convert the General Aviation area into aircraft parking area with busing of passengers to terminals.Project 1.
Starting date: Immediate through to 2013 with continuing operations and maintenance
Project 2: Improving Airport Management & Operations
Involving:
Implementing current plans to relocate General Aviation operations out of NAIA by the end of 2011.
Restriction of all turbo-prop aircraft operations to Runway 1331.
Encouraging domestic carriers to rebase their smaller aircraft (non-jet) operations to Clark, Cebu and Davao.
Exploring opportunities for negotiating a settlement on Terminal 3 with PITACO and Tagenaka to allow permanent use of the Terminal.
Strictly enforcing a limit of 32 runway rotations per hour to comply with ICAO standards and ensure safe air operations.Project 2.
Starting date: Immediate through to 2013
Lead ResponsibleStrategic Partners
DOTC/CAAP/NAIAPrivate tourism companies where appropriate, e.g. airport operations and maintenance
Destinations for Implementation
NP-7-Metro Manila-CALABARZON (Manila)
Estimated Cost (PhP 000)Potential Financing Sources
Project 1: 1,500,000Project 2:
DOTC (consider private sector funding and operations)
DOTC (consider private sector funding and operations)
1.2 Expand Connectivity between Philippines and its Key Growth MarketsDescription of the program
This program seeks to complement the physical investments in improving the capacity of the existing primary and secondary international airports with a series of policy initiatives designed to facilitate the participation of existing Philippine and other international carriers, as well as attract the entry of new international carriers servicing routes between points in the key growth markets and the Philippines. As noted in the Situation Analysis:
The current air service agreements do not designate many of the secondary international airports as points that can be served within the Philippines while existing entitlements for Philippine and foreign carriers on the primary routes remain limited;
The cost of international air operations to the Philippines is constrained by high airport ground costs and impost of a common carriers taxes and other fees and charges; and
Frontier requirements for key growth markets such as China and India make it difficult for the Philippines to tap the full potential of these markets.
Objectives
The main objective of this program is to provide the necessary regulatory and financial platform that will enable the Philippines to expand tourism from its key international growth markets.
The program will be implemented through three subprograms:
Renegotiating air service agreements with key growth market countries
Reducing international air operations costs in the Philippines
Simplifying and reducing frontier requirements for key growth markets
Proposed Subprograms and Projects1.2.1 Renegotiating Air Service Agreements with Key Growth Market Markets
Description and ProjectsTime Frame
The current air service agreements do not designate most of the EO 29 secondary international airports as points that can be served within the Philippines in the existing air service agreements with main growth market countries of China, India, South Korea, Japan, USA, and Australia. In addition, existing route entitlements for Philippine and foreign carriers need to be increased significantly, and new points in the main gateway countries designated. The subprogram has one project:
Project 1: Adjusting Air Service Agreements with Key Growth MarketsThis project comprises the following tasks:
Working with CAB and DFA, review the schedule of ASA negotiations and seek to bring forward the schedule of those that are main tourism growth markets.
Consulting with the carriers, airport operators and tourism industry to prepare the Philippine position in regard to:
designation of the secondary international airports as open sky airports in the ASAs, increasing light entitlements to existing points in the main growth markets, and increasing the number of points that can be served in the key growth markets; Obtaining key growth market country support through an extended diplomatic effort.
Implementing the revised schedule of negotiations with the key growth market countries.
Monitoring and evaluating progress on a regular basis.Project 1.
Starting date:
Immediate with completion by December 2013
Lead ResponsibleStrategic Partners
DFADOT/CAB, Airports, Airlines and Other Major Private Sector Stakeholders
Destinations for Implementation
NP-3-Central Luzon Clark), CP-6-Central Visayas (Mactan-Cebu), SP-6-Davao Coast & Hinterland (Davao), CP-5-Western Visayas (Iloilo), CP-4-Palawan (Puerto-Princesa), NP-2-Laoag-Vigan (Laoag), SP-5-Zamboanga peninsula (Zamboanga), and NP-7-Metro Manila-CALABARZON (NAIA).
Estimated Cost (PhP)Potential Financing Sources
Project 1: 30,000,000 DFA/DOT/CAB/Airlines
1.2.2 Reducing International Air Operations Costs in the Philippines
Description and ProjectsTime Frame
This subprogram seeks to complement improvements in the secondary and primary international airports, and increased connectivity opportunities through airport designation and increase flight entitlements, by reducing international carrier operating costs for servicing the Philippines to a level equal to or below the same costs in its main competitors in Asia (Thailand, Viet Nam and Indonesia). This subprogram will be implemented in one project:
Project 1: Reducing Airport Ground Handling Costs and FeesThis project comprises the following tasks: Comprehensive evaluation of all existing ground handling charges arrangements at the main and secondary international airports.
Study of international carrier costs in the competing countries of Thailand, Malaysia, Singapore, Indonesia and Viet Nam.
Preparing, presenting and discussing a position paper with recommendations on the results of the studies to the Economic Cluster of the Cabinet.
Preparing amendments to the National Internal Revenue Code of 1997 (RA 8424) to eliminate the Common Carriers Tax (CCT) and the Gross Philippine Billings (GPB)166 which are not imposed by other countries and that contravene the principles of the International Civil Aviation Organization to which the Philippines is a signatory; and
Removing the practice of charging overtime and other service fees direct to carriers.
Implement the revised tax and ground handling cost regime. Monitoring and evaluation of results.Project 1.
Starting date: Immediate through to 2012
Lead ResponsibleStrategic Partners
DOT, DTI, DOF, BIR, and CongressInternational and National Carriers
Destinations for Implementation
All main and secondary international airports
Estimated Cost (PhP 000)Potential Financing Sources
Project 1: 5,000
Grant financing from multilateral and bilateral development partners
1.2.3 Simplifying Border Formalities /Procedures for Key Growth Markets
Description and ProjectTime Frame
Although the decongestion and upgrading of the capacity of existing international airports together with increased flight entitlements and lower international carrier in-Philippine operating costs are important steps to take, these need to be complemented by actions designed to make it easier for two of the worlds largest outbound markets, China and India, to travel to the Philippines. Although the Philippines provides 21-day visa free privilege to 150 countries, the key growth markets of China and India are currently excluded and must go to a handful of Philippine visa issuing offices in their country to obtain a visa. India has recently granted visa on arrival for Filipinos and this should be reciprocated immediately. While China continues to require visas from Filipinos and other nationalities, competing countries such as Viet Nam, Thailand and Indonesia provide either visa exemptions or visa on arrival facilities to Chinese and Indian tourists. The subprogram will be implemented by a project with the following tasks:
Careful study of the visa issuing practices of the competing countries of Viet Nam, Thailand, and Indonesia including study of the On-Line visa facilities provided by Vie Nam
Preparation of a paper setting out the results of the study and evaluating the costs and benefits of the following options:
Providing visa on arrival to China and Indian nationals;
Providing on-line visa services to China and Indian nationals; and
Providing visa exempt arrival to China and Indian nationals
Key recommendations should be discussed and agreed within the framework of the above options and a course of action to implement the recommendations set forth.
Implementing the recommendations.
Monitoring and evaluationProject 1.
By end 2011
Lead ResponsibleStrategic Partners
DOJ/BIDFA
Destinations for Implementation
All international airports,
Estimated Cost (PhP 000)Potential Financing Sources
PhP 1,000DOT/DOJ/Donor
1.2 Implement a Strategic Access Infrastructure Program between Secondary International Airports and Strategic DestinationsDescription of the program
The design and implementation of an infrastructure development program to enhance strategic air, sea, and road connectivity between the international airports and the surrounding strategic tourism destination cluster gateway points is critical to the expansion of infrastructure and private sector investment in the existing and emerging tourist destination areas in these areas. To complement the investments in strategic connectivity infrastructure, it will be necessary to:
Undertake regulatory reforms and other initiatives designed to encourage increased and higher quality domestic tourist transportation services between the international airports and main gateway points in the SCDs;
Enable increased competition on strategic air, sea and road routes connecting the designated international airports and the surrounding SCDs and their tourist development areas to encourage:
Increased service frequencies, capacities and traveler convenience,
Adoption of latest on-line booking and reservation technologies,
Use of state-of-the-art transportation equipment,
Adoption of enhanced operational safety procedures
Upgrading of operational staff such as drivers, etc. through training, and replacement with more competent personnel; and
Increased price competitivenessThese interventions will help to underpin investments by the private sector in the strategic destination clusters.
Objectives
The primary objective of this program is to provide the necessary platform that allows greater distribution of international and domestic tourists to travel between the international gateways and other SCDs without these.
Proposed Subprograms and Projects
1.2.1 Design and Implementation of Strategic Access Infrastructure Subprogram
Description and ProjectsTime Frame
The subprogram seeks to develop three sets of projects and related subprojects: (a) strategic airport improvements project comprising 25 subprojects; (b) strategic seaport/RORO project comprising 22 subprojects; and (c) strategic road improvements project comprising 28 subprojects.
Project 1: Improvement, rehabilitation and expansion of airports that connect to tourism clusters.Scope of work includes provision of parking, welcomers area, expansion of apron, provision of CIQS, night landing lights, terminal expansion and rehabilitation, construction of perimeter fence and improvement of access roads
Cluster
Airport
Northern Philippines Tourism AreaBatanes Island Cluster
Batanes Airport
Laoag-Vigan Cluster
Mindoro (Vigan) Airport
Central Philippines Tourism AreaBicol Cluster
Daet Secondary Airport (Camarines Norte)
Pili Airport (Camarines Sur)Caramoan Airstrip (Camarines Sur)Legaspi Airport (Albay)Marinduque-RomblonTugdan Airport (Romblon)
Marinduque Airport
Mindoro-Calamian Cluster
San Jose Airport (OCC Min)
Boracay-Northern Antique Cluster
Kalibo Airport
Central Visayas Cluster
Bantayan Island Airport
Leyte-Samar Cluster
DZR Airport
Southern Philippines Tourism AreaSiargao-Dinagat Island Cluster
Siargao Airport
Agusan River Basin and Coastal Cluster
Butuan Airport
Cagayan de Oro Camiguin Island-Tangub Coastal and Hinterland Cluster
Camiguin Airport
Dipolog-Dapitan Resort Coast Cluster
Dipolog Airport
Zamboanga Peninsula Cluster
Zamboanga Airport
Davao Gulf and Coastal Cluster
MATI Airport
Cotabato-Saranggani Cluster
Mlang Airport
Project 1.
Starting date: 2012 until 2016
Project 2: Improvement, rehabilitation and expansion of seaport facilities that connect tourism clusters. Scope of work include improvement and rehabilitation of passenger terminals, construction of RORO ramps and causeways, dredging of birthing areas and provision of parking space
ClusterPort
Northern Philippines Tourism Area
Batanes Island Cluster
Basco-Ivana Port
Laoag-Vigan Cluster
Currimao Port
Lingayen Gulf Cluster
Metro Manila and the CALABARZON Cluster
Polilio Island Port
Central Philippines Tourism Area
Bicol Cluster
Mercedes Port
J. Panganiban Port
Sabang Port (San Jose, Camarines Sur)
Guijalo Port
San Vicente Port (Caramoan, Camarines Sur)
Codon Port (San Andres, Catanduanes)
Port of Claveria
Port of Pilar, Sorsogon
Port of Bulan, Sorsogon
Tobaco Port
Masbate Port
Mindoro-Calamian Cluster
San Jose Seaport (Occ Min)
Palawan Cluster
Puerto Princesa Seaport Port
Boracay-Northern Antique Cluster
Cagban Jetty Port
Western Visayas Cluster
Central Visayas Cluster
Sta Fe Port
Eastern Visayas
Southern Philippines Tourism Area
Siargao-Dinagat Island
Dinagat Port
Cotabato-Saranggani Cluster
Port of Gen Santos
Project 2.
Starting date: 2012 Implementation: 5 years until 2016
Project 3: Improvement, rehabilitation and upgrading of approximate 850 kilometers of roads leading to tourism clusters into all weather conditionScopes of works include upgrading from earth to gravel and gravel to asphalt concrete pavement, improvement of road and off road elements, and rehabilitation of damaged sections. Also included in the scope of work is consultancy for detailed design and construction supervision.
Cluster
Road
Northern Philippines Tourism AreaBatanes Island Cluster
Cagayan Coast and Babuyan Island Cluster
Tuguegarao City -Baggao RoadLaoag-Vigan Cluster
Solsona-Calanasan
Sierra Madre Cluster
Cordillera
Calanasan-Claveria Road
Banaue-Mayoyao-Aguinaldo-Ramon
Banaue-Hungduan-Tinoc-Bugias Road
Central Luzon Cluster
Olongapo-Fernando Road
Widening/Concreting of McArthur Highway
Metro Manila and CALABARZON Cluster
Completion and concreting of Looc-Ternate Road Project.
Extension of coastal road R1 extension from Bacoor to Cavite City
Aguinaldo Highway leading to Tagaytay City
Central Philippines Tourism AreaPalawan Cluster
Coron-Salvacion, Calawit Road
San Jose-Port Borton Road
San Vicente-El Nido-Taytay Road
Sta Cruz seaport -Taytay Road
Boracay-Northern Antique Cluster
Caticlan-Kalibo Road
Western Visayas Cluster
Bacolod - Murcia- Don Salvador - San Carlos national road
Silay- Bacolod Road
Guimara Circumferential Road
Central Visayas Cluster
Panglao Circumferential Road
San Carlos-Dumaguete Road
Samar Cluster
Philippine-Japan Friendship Highway (Samar Section)
Southern Philippines Tourism AreaSiargao-Dinagat Island Cluster
Siargao Island Circumferential road
CDO-Talakag Highway ICT Sitio Ugbayanon, Dansolinon
ICBR road (Laguindingan-Iligan Section)
Zamboanga Peninsula Cluster
Tubod-Lakewood National Secondary
Davao Gulf and Coast Cluster
Mawab - Paloc, Maragusan
Compostela- Cateel Road
Cotabato-Saranggani Cluster
Maitum- Palimbang- Kalamansig Road
Project 3.
Starting date: 2012 Implementation: 5 years until 2016
Lead ResponsibleStrategic Partners
Project 1: CAAP, CAB, DOTC, DOT, NEDA, DBM
Project 2: PPA, MARINA, DOTC, DOT, NEDA, DBM
Project 3: DPWH, DOT, NEDA, DBMProject 1: LGUs, Tourism Councils, Regional Development Councils, CSOs
Project 2: LGUs, Tourism Councils, Regional Development Councils, CSOs
Project 3: LGUs, Tourism Councils, Regional Development Councils, CSOs
Destinations for Implementation
Nationwide with priority given to NP-3 Laoag-Vigan Cluster , NP-5 Cordillera , CP-1 Bicol, CP-6 Western Visayas, SP-7 Davao Gulf and Coast
Estimated Cost (PHP)Potential Financing Sources
Project 1: 513,240
Project 2: 637,500
Project 3: 14,502,124Project 1: Local funds from CAAP, DOTC, DOT, ODA from major international financing institutions
Project 2: PPA, DOTC, DOT, ODA from major international financing institutions
Project 3: DPWH, DOT, ODA from major international financing institutions (possible PPP financing for selected projects)
1.2.2 Improving Sea and Road Transportation Services
Description and ProjectsTime Frame
The subprogram seeks to raise the quality and safety of road and sea tourist transportation equipment used by domestic ad international tourists, while increasing the number of service providers to ensure that demand and supply is adequately balanced at acceptable prices. The main components of the subprogram are: (a) working with existing road and sea transportation providers to improve the quality and safety of road and sea tourist transportation equipment and booking and reservation systems as well as the frequency of services; (b) designating strategic developmental sea and road routes as open service sea and road routes allowing unrestricted operation of road and sea transportation services by qualified transportation service providers; and (c) promoting increased competition on strategic air, sea and road routes connecting the designated international airports and the surrounding SCDs and their tourist development areas. The subprogram comprises three projects:
Project 1: Enlisting Existing Transportation Operators SupportThis project comprises the following tasks:
Preparing two position papers on sea and road transportation requirements of domestic and international tourists and recommendations for action by existing transportation service providers on the strategic routes. The position papers will deal with the following issues: Increased service frequencies, capacities and traveler convenience,
Adoption of latest on-line booking and reservation technologies,
Use of state-of-the-art transportation equipment,
Adoption of enhanced operational safety procedures,
Upgrading of operational staff such as drivers, etc. through training, and Replacement with more competent personnel; and
Increased price competitiveness.
Circulation of the position paper to existing sea and road transportation providers for comment, and finalization of the papers as input into two planning workshops to be attended by the existing sea and road transportation providers and other stakeholders. Organizing and holding of 2-day planning workshops with existing sea and road transportation providers and other stakeholders to agree a sea and road transportation services improvement project in terms of what will be done, by whom and by when; the incentives to be provided to support these initiatives; the method of monitoring and evaluation; and signing of a MOA between the existing sea and road transportation providers and the concerned agencies to undertake these commitments. Implementation of the sea and road transportation services improvement project. Monitoring and evaluating implementation of the project.Project 1.
Starting date:
Second half of 2011 with completion by December 2014
Project 2: Designating Developmental Sea and Road Open Service RoutesThis project comprises the following tasks: Identifying strategic secondary routes for designation as Open Service Routes giving special attention to underserved routes such as those between Manila and Marinduque, Romblon, between Roxas City and Masbate, and Masbate to Sorsorgon City, etc..
Preparing related documentation and draft EO for discussion and finalization between DOT and related DOTC agencies
Submission of Draft EO to Office of The President for endorsement and signing
Implementation of EO
Monitoring and evaluating progress on a regular basis.Project 2.
Starting date:
Second half of 2011 with completion by December 2012
Project 3: Undertaking transportation regulatory reforms
This project comprises the following tasks: Preparing position papers on the way in which the current regulatory requirements for sea and road tourism transportation services could be improved to deliver safer, more convenient, better quality equipment, and increased services. Circulating the position papers to the existing sea and road transportation service provider and other stakeholders, for review and comment, and finalization. Holding a series of industry-stakeholder-Congressional consultations to determine and agree the regulatory changes that should be made to achieve the overall objectives of the regulatory reforms. Based on the stakeholder discussions, prepare draft amendments to the related Laws or EOs and submit these for finalization and processing by the Office of the President and/or the Congress Implementation of the IRRs once the amended EOs and Laws have been approved by the Congress and President.
Monitoring and evaluating of implementation progress.Project 3.
Starting date: Second half of 2011 with completion by December 2013
Lead ResponsibleStrategic Partners
Project 1: DOT, DOTC (MARINA and LTFRB)
Project 2: DOT, DOTC (MARINA and LTFRB)
Project 3: DOT, DOTC (MARINA and LTFRB), Office of the President and the CongressProject 1: Sea and Road Transportation Operators and Private Sector Stakeholders
Project 2: Sea and Road Transportation Operators and Private Sector Stakeholders
Project 3: Sea and Road Transportation Operators and Private Sector Stakeholders
Destinations for Implementation
Nationwide with priority give to linkages between 7 secondary international airports as well as NAIA and their connected SCDs.
Estimated Cost (PHP 000)Potential Financing Sources
Project 1: 5000.0
Project 2: 5000.0
Project 3: 5000.0DOT/DOTC (MARINA and LTRFB)
Attachment 1 Cost Sheets and Cost EstimatesAppendix 7
Detailed Action Plan
Formulation of the
Philippine National Tourism Development Plan 2011-2016
_1274010962.psd