The Department of Transportation (DoTr) has extended the bid submission deadline for the operations and maintenance (O&M) contract of the North-South Commuter Railway (NSCR) to September, due to ongoing one-on-one sessions with prospective bidders.
Transportation Undersecretary for Railways Timothy John R. Batan stated that the extended deadline allows the DoTr to conduct another round of technical discussions with bidders in the coming weeks. The initial bid submission deadline was set for July 29 but was later moved to accommodate the additional sessions.
At least 10 companies have expressed interest in bidding for the O&M contract, including Japanese rail operators Tokyo Metro Co., Ltd. and JR East and JR West, as well as French operators from Paris' metro system and other French transport companies.
The NSCR is a 147-kilometer railway project that will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. The O&M deal will cover 15 years from the signing date of the contract, with the project expected to be fully operational by January 2032.
The DoTr has secured a partial credit guarantee from the Asian Development Bank (ADB) to ensure payments to the operator of the NSCR project. This guarantee is expected to attract foreign bidders, as it removes virtually all downsides and guarantees payment.
International consultant on transport development Rene S. Santiago noted that domestic firms will not be able to participate in the bidding based on the criteria given by the DoTr, which requires a minimum net worth of P114.65 billion and a minimum of 10 years of experience in rail operations.
PwC Philippines Chairman Roderick M. Danao stated that the NSCR O&M project is the largest rail operation in the region, making it an attractive opportunity for railway operators. He noted that the availability payment structure and predictable revenues make it an appealing project for investors.
