ADB Appointed as Transaction Advisor for Major Philippine Public Transport Projects

This system will feature electric and diesel buses across 29 lines, with necessary infrastructure including bus terminals, stops, and dedicated lanes.

The Asian Development Bank (ADB) has been designated as the transaction advisor for the Philippine Department of Transportation (DOTr) on three pivotal projects aimed at enhancing public transportation and improving daily commutes. ADB's Office of Markets Development and Public–Private Partnership will assist DOTr with project preparation, contract structuring, and the procurement of qualified private partners for these key initiatives.

The first project involves the rehabilitation, operation, and maintenance of the Metro Rail Transport Line 3 (MRT3). This 17-kilometer rail line runs along Epifanio de los Santos Avenue (EDSA), a major thoroughfare serving Metro Manila's 14 million residents and connecting the cities of Pasay, Makati, Mandaluyong, and Quezon City. Currently managed by DOTr with maintenance provided by Sumitomo – Mitsubishi Heavy Industries Ltd., the contract for maintenance will expire in 2025. ADB will help DOTr secure an experienced passenger rail operator for this critical line.

The second project focuses on developing a modern bus transport system in Davao City, financed by a $1 billion ADB loan. This system will feature electric and diesel buses across 29 lines, with necessary infrastructure including bus terminals, stops, and dedicated lanes. The selected private partner will also implement an Intelligent Transport System and an Automated Fare Collection System to streamline operations and enhance user experience.

The third initiative aims to modernize public transport fare collection through digital solutions. ADB will assist DOTr in developing the Philippine Automated Fare Collection System, which will be a nationwide, cashless, open, and interoperable system. The initial roll-out will focus on government-owned rail lines, with future expansion planned across all public transport systems.

Cleo Kawawaki, Head of ADB’s Office of Markets Development and Public–Private Partnerships, underscored the importance of efficient public transport systems. “Efficient public transport systems are key to ensuring sustainable growth and mitigating the impact of climate change,” Kawawaki stated. “We are honored to support DOTr in finding the right private partners for these projects, which will drive efficiency, innovation, and improved consumer experiences for public transport users in the Philippines.”