Transport analysts said domestic and foreign bidders are expected to be active for the operation and maintenance (O&M) contract of the North-South Commuter Railway (NSCR) project.
Libra Consult, Inc. “Roads or highways with high expected traffic would probably be financially viable. NSCR would probably be very attractive,” Nigel Paul C. Villarete, senior adviser to the PPP in the U.S., said via Viber over the weekend.
Last week, the Department of Transportation (DoTr) officially opened the NSCR O&M contract for bidding.
As per instructions to potential bidders, the draft concession agreement is expected to be released on November 7 fiThe National O&M Concession Agreement will be issued on April 30, 2026.
According to the Public-Private Partnership (PPP) Centre, the bids will be accepted on or before 11 am on May 29, 2026.
Earlier this month, acting Transportation Secretary Giovanni Z. Lopez said about five companies, including foreign ones, have expressed interest in the O&M contract.
To qualify for the project, bidders must have a minimum net worth of P114.65 billion or its equivalent in foreign currency by the 2024 fiscal year.
DoTr said that for consortia, the lead member of the group must hold at least 34% equity interest of both voting and non-voting shares of the O&M concessionaire.
Bidders, including consortium members or associates, must include at least one entity with 10 years of experience in rail operations, preferably in the management of a rail line that handles at least 45,000 passengers per direction per hour.
In addition, at least one unit should have eight years' experience in maintaining railway infrastructure and systems, including the use of computerized maintenance management systems, and the other should have eight years' experience in maintaining track and civil infrastructure.
“Procurement through public bidding is always based on gaining interest from potential investors, luring them with advantageous return rates with minimal risk. In cases where a project has very high economic benefits but is not financially attractive (such as rail), the government may choose to subsidize,” Mr Villarete said.
Rene S., an international consultant on transportation development and former president of the Transportation Science Society of the Philippines. Santiago expects that the project's requirements will be difficult to circumvent.
“The bid is pitted against Filipino firms. Moreover, it will require railway O&M experience which no local firm can comply with,” he said.
Philippine-based companies are able to operate and manage the NSCR, but when it comes to achieving profitability, foreign companies may have the advantage, Mr. Santiago said.
Meanwhile, implementing the net worth qualification on a larger scale is expected to bring in capable bidders, Mr Villarete said.
“Net worth is one of the qualifications for bidding. It is a measure of the company's capacity to undertake projects of that size. Construction works are paid on a stage billing process, which means the contractor must have sufficient funds to carry forward the work,” he said.
DoTr said the NSCR O&M deal will last for 15 years from the date of signing the contract.
The 147-kilometer NSCR will connect Malolos, Bulacan to Clark International Airport and Tutuban, Manila to Calamba, Laguna. The P873 billion project is co-financed by the Japan International Cooperation Agency and ADB. It will have 35 stations and three depots.
Full operation is expected by January 2032; Partial operation on the Malolos to Valenzuela section is anticipated by December 2027; Operations on the Clark to West Valenzuela section are expected to begin by October 2028. , Ashley Erica O. jose
