The Manilla Metro Line 3 project

COUNTRY | Republic of the Philippines

REGION | Asia

SECTOR | transport

QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 4 Building Resilience, Principle 5 Social Considerations, Principle 6 Infrastructure Governance

QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Value for money analysis, 2: Life-cycle costing, 2: Operation and Maintenance, 2: Technological innovation, 2: Risk management, 3: Environmental impact Assessment, 3: Environmental Impact Mitigation, 3: Disclosure of environmental aspects, 3: Ecosystems, 3: Biodiversity, 3: Climate, 3: Weather, 3: Emissions, 4: Resilience, 4: Disaster risk Management, 4: Disaster Risk Insurance, 5: Social Impact Assessment, 5: Job Creation, 5: Capacity and institutional building, 5: Gender, 5: Occupational Health and Safety, 5: Universal access to services, 5: Social inclusiveness, 5: Disability, 5: Low-income groups, 5: Children, 5: Elderly, 5: Marginalised groups, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Anti-corruption, 6: Access to information and data, 6: Transparency of infrastructure investment, 6: Enabling Environment, 6: Policy

Overview

Metro Rail Transit Line 3 Rehabilitation Project

The aim of the Project is to carry out extensive repairs to all rolling stock and equipment whose operating rates have dropped due to aging or other reasons, without interfering with ordinary operation, in order to restore the line’s safety and efficiency. A new safe maintenance regime will also be developed to maintain high operating rates even after the repairs are finished.

Total Project Cost: 418.5, Loan Amount: 356 (in million USD)

Size: Total length: 17km (13 stations)

Parties involved (public and private):

The Government of the Republic of the Philippines,
The Japan International Cooperation Agency,
Sumitomo Corporation, Mitsubishi Heavy Industries Engineering, Ltd.

Relevant contractual details (type, length etc.):

Rehabilitation and maintenance agreement

Contractor: The Government of the Republic of the Philippines (Department of Transportation) and a joint venture of Sumitomo Corporation and Mitsubishi Heavy Industries Engineering, Ltd.
Length: 2019/1-2022/11
Content: Rehabilitation and maintenance of vehicles (in operation and out of service), railway systems (tracks, signals, electric equipment, etc.), station facilities (elevators, etc.), and equipment for maintenance and management, as well as provision of spare parts (including maintenance and management during rehabilitation and defects liability period)

Japanese Yen ODA Loan agreement

Contractor: The Government of the Republic of the Philippines and The Japan International Cooperation Agency
Content: Providing a Japanese ODA loan of up to 38,101 million yen for the project.

Context: Metro Rail Transit Line 3 was put into service in 2000 and for the first 12 years. Because of the inadequate maintenance, including a neglect to procure necessary spare parts, the line has been plagued with frequent disruptions from the deteriorating railway system and vehicles.

Aim(s) of the project: The objective of the Project is to improve the safety and the service level of MRT Line 3 and to promote the use of it, by rehabilitating MRT Line 3, thereby contributing to alleviate serious traffic congestion as well as to mitigate air pollution and climate change in Metro Manila. In addition, by creating manual that is accessible and understood by all local workers, a new safe maintenance regime will also be developed to maintain high operating rates even after the repairs are finished.

Technical Assistance Project to Establish of the Philippine Railway Institute

This technical assistance project aims to build a Philippine Railway Institute (PRI) as part of the Philippine government's move to beef up the country's human resources capacity on railway management.
Through this project, the operation and maintenance system of the Philippines will be enhanced by educating local workers.

Cost: 4.8 million USD (as of December 2017 Ex-Ante Evaluation)

Parties involved (public and private):

The Government of the Republic of the Philippines,
The Japan International Cooperation Agency,
Oriental Consultants Global Co., Ltd.,
Tokyo Metro Co., Ltd.,
ALMEC Corporation

Relevant contractual details (type, length etc.):

Japanese Technical Assistance agreement
Contractor: The Government of the Republic of the Philippines and The Japan International Cooperation Agency

Content: Providing technical assistance to establish Philippines Railway Institute. JICA mobilized technical experts from Japanese consulting firm and railway operator (Tokyo Metro Co., Ltd.).

Context: Supporting multiple railway projects in Metro Manila and its surrounding areas by developing high-quality human resources, licensing management system, and research and knowledge management capacity, which are essential to secure safe operation and maintenance.

Aim(s) of the project: The objective of the project is to support the safer, more secure and efficient operation of the Philippine railway system by strengthening the human resources and operational capabilities of Philippine railway operators through the establishment of Philippines Railway Institute.

Timeline

Metro Rail Transit Line 3 Rehabilitation Project

Key dates including procurement, construction, operations:

Start of rehabilitation May 2020,
End of rehabilitation June 2021
End of Maintenance November 2022

Technical Assistance Project to Establish of the Philippine Railway Institute

Key dates including operations:

Start of cooperation May 2018
Start of training October 2019
End of cooperation May 2023

Relevance to QII

Metro Rail Transit Line 3 Rehabilitation Project & Technical Assistance Project to Establish of the Philippine Railway Institute

Maximizing the positive impact of infrastructure, particularly by enhancing the long-term sustainability of the project while ensuring skills transfer to the local staff.

In addition to rehabilitate the railway, Japan supports to create manual or checklist that is useful for local workers to operate and maintenance the railway business. In this way, the know-how Japan possesses is transferred to Philippines and this can provide positive impact on local economy. (Principle #1)

Strengthening infrastructure governance, particularly by helping establish a Railway Institute that delivers critical training to the local staff.
Japan invited the local staffs to Japan in order to introduce Japanese knowledge and skills for them, which are fundamental of maintaining the safety and accuracy of railway operation. The staffs visited the actual site in Japan last year, such as stations, driver’s cabin, electricity facilities, and they could learn operation and maintenance and how to prevent incidents caused by human error from happening. (Principle #6)

Benefits

Metro Rail Transit Line 3 Rehabilitation Project

Due to inadequate maintenance, the line has been plagued with frequent disruptions from the deteriorating railway system and vehicles.

The rehabilitation of the mass transport network in Manila is expected to ease congestion and boost logistics, especially in metropolitan areas.

Expected and realised benefits:

Expected benefits;

Increase in the number of train availability; 11.6 (in 2018) to 18 trainsets/hour
Decrease in operation interval; 330 seconds (in 2018) to 200 seconds
Increase in maximum speed; 40km/h (in 2018) to 60km/h

Realised benefits as of September 2020;

Increase in the number of train availability; 15-16 trainsets/hour]Decrease in operation interval;
Increase in maximum speed;

Technical Assistance Project to Establish of the Philippine Railway Institute

Highlights:

Philippines Railway Institute aims at helping build the country’s human resources necessary for safe operation and maintenance of modern railways.

Expected and realised benefits:

Expected benefits: About 15,000 trainees are qualified.

Realised benefits: 116 trainees were qualified as of August 2020.

Metrics

Metro Rail Transit Line 3 Rehabilitation Project

How is success measured and reported?

Following operation and effect indicators will be measured and reported 2 years after project completion

Volume of Transportation (persons x km),
Number of Running Trains (Number of trains/Day),
Operation rate (Annual total working days / number of trains × (365 days -average non-operation days caused by the inspection))

Technical Assistance Project to Establish of the Philippine Railway Institute

How is success measured and reported?
Following operation and effect indicator will be measured and reported after project completion

Number of Qualified trainees

Name of Institution

Ministry of Finance, Japan