|
 |
|
IFC Signs Metro Rail Advisory Mandate in the Philippines
In Manila
Karina Jacinto
Phone: + (632) 848 7333
Email:
kjacinto@ifc.org
In Hong Kong
Desmond Dodd
Phone:+ (852) 2509 8183
Email: Ddodd@ifc.org
Manila, September 15, 2004—The International
Finance Corporation, the private sector arm of the World Bank Group, has
received an advisory services mandate from the Philippines government to
support the mobilization of private investment to build, maintain and manage
the extension of Manila’s existing Light Rail Transit Line 1 system. Investment
related to the concession is expected to be in the range of $800 million.
IFC’s role is to encourage transparency, add credibility to the concession
and bring global expertise to bear in designing an award process that encourages
well-established infrastructure investors.
The project will expand the existing 15 kilometer LRT Line 1, 12 kilometers
south from the existing Baclaran station. Expansion will include a station
at Manila International Airport, as well as nine others. The new stations
will incorporate intermodal facilities, such as bus depots and pedestrian
links, to encourage ridership and promote reduced automobile traffic in
the core areas of Metro Manila through a convenient mass transport alternative.
The project was initiated through an unsolicited offer to the government
from SNC Lavalin International of Canada. In accordance with the BOT Law,
the project is subject to a comparative and competitive proposal process,
often referred to as a Swiss challenge. IFC will advise on the appropriate
implementation of this Swiss challenge by assisting in organizing an open,
transparent and competitive bidding process.
“In the face of enormous traffic congestion at the core of Metro Manila
and a rapidly growing urban population, this project has enormous economic
development potential in the Philippines” said IFC Philippines Country
Manager Vipul Bhagat. “The Swiss Challenge required in this project should
provide a major contribution to improved transparency and effectiveness
in the delivery of public services in the Philippines, and we are pleased
to support this process with IFC’s global infrastructure experience and
commitment to achieving high standards and benefits for local communities.”
IFC’s Advisory Services Director Bernard Sheahan added, “By offering
commuters a positive mass transport alternative, this project should help
reduce air pollution and improve everyday life for Manila residents who
rely on public transportation”.
For more than 40 years, IFC has demonstrated a strong commitment to promoting
private sector development in the Philippines. It recently was awarded
an advisory mandate to promote rural power distribution. In its fiscal
year that ended June 2004, IFC committed $89.7 million in loans and equity
to five projects, primarily in the infrastructure sector.
The mission of IFC is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people's
lives. IFC finances private sector investments in the developing world,
mobilizes capital in the international financial markets, helps clients
improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY03, IFC has committed more than $37 billion of its own
funds and arranged $22 billion in syndications for 2,990 companies in 140
developing countries. IFC's worldwide committed portfolio as of FY03 was
$16.7 billion for its own account and $6.6 billion held for participants
in loan syndications.
|
|
|
| |
