Stocks rebound on bargain hunting before Fed

Philippine shares rebounded on Tuesday as investors picked up cheap stocks after the market’s drop, although the mood remained cautious as the US Federal Reserve was set to begin its two-day meeting overnight.

The Philippine Stock Exchange index (PSEi) jumped by 1.5% or 91.31 points to close at 6,148.74, while the broader all shares index rose by 0.97% or 35.63 points to end at 3,706.20.

“After the market closed in the red yesterday (Monday), buyers took control of today’s session as bargain hunting persisted. However, firm catalysts are still needed to determine whether this marks the beginning of a true market recovery,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market surged on the back of a technical rebound in battered banking names as investors take the opportunity to pick up blue-chip banks like BDO and BPI at a discount,” AP Securities, Inc. said in a market note. Shares of BDO Unibank, Inc. climbed by PHP 5.40 or 3.96% to close at P141.80 each on Tuesday, while Bank of the Philippine Islands surged by PHP 7.40 or 7.23% to end at PHP 109.70 apiece.

Mr. Limlingan added that the local market tracked Wall Street’s rise overnight.

“Investor sentiment was lifted by expectations of an upcoming interest rate cut from the Fed, which slightly offset the concerns about slowing job growth,” he said.

The three major US stock indexes closed higher on Monday, with the S&P 500 and the Nasdaq notching intraday record-high closes, as investors await the US Federal Reserve’s crucial policy meeting later this week, Reuters reported.

The Federal Open Market Committee meeting on Sept. 16-17 looms large over sentiment this week, with market participants widely expecting a 25-basis-point reduction following recent economic data signaling labor market weakness.

Traders on Monday are pricing in a 96% chance of a 25-basis-point cut at this week’s meeting.

The Fed has kept its target rate at the 4.25%-4.5% range since December last year.

The majority of sectoral indices closed higher on Tuesday. Financials jumped by 3.69% or 74.18 points to 2,080.42; mining and oil climbed by 3.21% or 367.98 points to 11,804; services rose by 1.29% or 28.15 points to 2,206.69; holding firms increased by 0.84% or 42.29 points to 5,028.02; and industrials went up by 0.5% or 45.16 points to 9,029.01.

Meanwhile, property declined by 0.43% or 10.78 points to 2,462.58.

Value turnover increased to P6.56 billion on Tuesday with 3.69 billion shares traded from the P6.24 billion with 3.48 billion shares exchanged on Monday.

Market breadth was positive as advancers beat decliners, 101 to 93, while 59 names closed unchanged.

Net foreign selling thinned to PHP 35.46 million on Tuesday from PHP 473.25 million on Monday. — Alexandria Grace C. Magno with Reuters

Cash remittances hit 7-month high at USD 3.18 billion in July

Filipinos abroad sent more money home in July, hitting a seven-month high as remittances from sea-based workers grew at a slightly quicker pace than those from land-based workers, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Cash remittances coursed through banks jumped by 3% to USD 3.179 billion in July from USD 3.085 billion in the same month a year ago, data from the central bank showed.

This marked the highest monthly remittance level since the USD 3.38 billion posted in December last year.

Month on month, remittances grew by 7% from USD 2.987 billion previously.

“The Philippines saw sustained growth in cash remittances in July of this year, with remittances from sea-based overseas Filipinos (OFs) increasing slightly faster than funds from land-based OFs,” the BSP said in a statement.

Money sent home by land-based workers made up the bulk of cash remittances in July, which went up by 3% year on year to USD 2.59 billion.

Remittances from sea-based workers rose by 3.1% year on year to USD 585 million in July.

“The peso’s relative weakness against the US dollar also encouraged higher remittances, as families received greater peso value,” Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines (UnionBank), said in a Viber message.

In July, the peso performed weaker at an average PHP 56.7523 per US dollar from the PHP 56.3586 recorded in June.

Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message that the remittances growth in July was also driven by the start of the school season which meant overseas Filipino workers (OFWs) sent more money to their families to pay for tuition fees and school supplies.

Mr. Ravelas said global job stability may have allowed sea-based workers to send home more money.

Mr. Asuncion said the increase in remittances by sea-based workers reflects “strong demand in the maritime sector, buoyed by stable global trade and the recovery of cruise operations.”

“Higher dollar-denominated wages and renewed contracts for seafarers contributed to this growth, underscoring the sector’s resilience and its role as a stabilizing force for overall remittance inflows,” he said.

Meanwhile, personal remittances, which include both cash coursed through banks and informal channels and in-kind remittances, climbed by 3.1% to USD 3.53 billion in July from USD 3.43 billion in the same month last year.

Most of the personal remittances that month came from workers with contracts of one year and above, amounting to USD 2.81 billion, up 3% from a year earlier.

Those with contracts of less than one year sent home USD 650 million, rising by 3.3% year on year.

Seven-month period

In the first seven months of the year, cash remittances from OFWs increased by 3.1% to USD 19.932 billion from USD 19.332 billion a year ago.

This as remittances sent by land-based workers rose by 3.3% to USD 15.97 billion during the period, while sea-based workers’ remittances inched up by 2.3% to USD 3.96 billion.

Filipinos in the United States accounted for 40.3% of the total cash remittances sent in the January-to-July period.

This was followed by OFWs in Singapore (7.1%), Saudi Arabia (6.2%), Japan (5%), the United Kingdom (4.8%), the United Arab Emirates (4.4%), Canada (3.4%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.7%).

Personal remittances in the first seven months reached USD 22.206 billion, up by 3.1% from USD 21.532 billion a year prior.

Mr. Asuncion said the upcoming holiday season will allow remittances to sustain its growth in the coming months.

“Looking ahead, remittances are expected to maintain an upward trajectory in the coming months, supported by seasonal inflows during the ‘-ber’ months and the holiday season,” he said.

However, the UnionBank economist also noted that global economic uncertainty and policy changes across the world pose risks to the country’s remittances growth.

“Nonetheless, steady overseas employment and a competitive peso should help sustain positive momentum,” he added.

The BSP expects cash remittances to grow by 2.8% to USD 35.5 billion this year. — Katherine K. Chan

Philippines now a step closer to re-entering JPMorgan’s bond index

The Philippines is now on the positive watchlist for JPMorgan Chase & Co.’s emerging market government bond index, putting it a step closer to re-entering the list that could help bring in more foreign investments.

JPMorgan said in a report on Sept. 12 that Philippine peso-denominated government bonds (RPGB) have been tagged as “Index Watch Positive,” according to statements from the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DoF).

This is the final review phase for the bonds’ potential inclusion in the bank’s Government Bond Index for Emerging Markets (GBI-EM) series.

“Inclusion would be expected to attract more foreign investments, increasing liquidity and lowering borrowing costs for the government and eventually the private sector… While the Philippines has been able to raise funds from foreign investors through its dollar-denominated bonds since the early 2000s, inclusion in the GBI-EM series is expected to help the government draw more foreign investors to its larger peso-denominated bond market,” the BSP said.

JPMorgan’s GBI-EM tracks the performance of sovereign and quasi-sovereign bonds issued by emerging market countries. The country’s inclusion will need to be approved by a certain percentage of investors reviewing the index.

The Philippines would have a weight of about 1% of the GBI-EM Global Diversified Index if included, according to JPMorgan.

The Philippines’ global peso notes were removed from the GBI-EM in January last year due to illiquidity. For potential inclusion in the index are RPGBs issued from 2023 with tenors up to 20 years, the DoF said.

“Getting on the positive watchlist is a testament to the work the government and financial market leaders has done especially in the last few years to expand our capital markets, particularly our local bond market. This news serves as further impetus to execute more changes and reforms,” BSP Governor Eli M. Remolona, Jr. said.

“This is a promising development for the Philippines as the potential inclusion of our government bonds into this global index means increased capital inflows and therefore more funds for the government to better serve Filipinos. This is an excellent opportunity for us to promote our capital markets to a wider range of investors,” Finance Secretary Ralph G. Recto said.

National Treasurer Sharon P. Almanza earlier said it could take the Philippines two to three years to re-enter the bond index after getting added to JPMorgan’s watchlist.

The bank said it will conduct its Index Watch assessment within six to nine months and will provide updates in the first quarter of 2026.

The BSP and the DoF said that JPMorgan cited the Philippines’ “proactive market reforms,” including reviving the repo market, launching the Philippine Peso interest rate swap market, and the consolidation of benchmark tenors, in its decision to put the country on its index watchlist.

“JP Morgan also noted positive feedback from GBI-EM investors, particularly on the accessibility of the RPGB market via Brussels-based clearing house Euroclear, as well as improvements in secondary market liquidity through the consolidation of benchmark tenors… Due to reforms, foreign ownership of RPGBs has doubled from 1.8% in 2021 to 5.2% as of June 2025, JPMorgan said,” the BSP said.

Meanwhile, secondary market liquidity and taxation issues were among the key concerns raised by investors, it added. — Bettina Faye V. Roc, Banking Editor

Peso declines versus dollar

The peso declined against the dollar on Monday after the United States urged its allies to impose tariffs on countries that are buying oil from Russia.

The local unit closed at PHP 57.181 versus the greenback, dropping by 8.1 centavos from its PHP 57.10 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session weaker at PHP 57.20 versus the dollar. Its intraday high was at PHP 57.16, while its worst showing was at PHP 57.38 against the greenback.

Dollars traded went up to USD 1.52 billion on Monday from USD 1.48 billion on Friday.

The dollar was generally stronger on Monday as US President Donald J. Trump said they could impose more sanctions on Russia, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Mr. Trump said on Saturday that the US is prepared to impose fresh energy sanctions on Russia, but only if all North Atlantic Treaty Organization (NATO) nations cease purchasing Russian oil and implement similar measures, Reuters reported.

In recent weeks, the US has stepped up pressure on NATO countries to tighten energy sanctions on Russia in a bid to help end its war with Ukraine — a conflict Mr. Trump has struggled to bring to a close despite repeated threats of harsher penalties on Moscow and its partners.

For Tuesday, a trader said the peso could move between PHP 57 and PHP 57.40 per dollar, while Mr. Ricafort expects it to range from PHP 57.10 to PHP 57.30. — A.M.C. Sy with Reuters

PSEi slides to 6,000 level as market seeks leads

Philippine shares sank to the 6,000 level on Monday to hit a five-month low due to selling pressure amid a lack of leads, weak market sentiment, and lingering corruption concerns.

The benchmark Philippine Stock Exchange index (PSEi) declined by 0.84% or 51.78 points to close at 6,057.43, while the broader all shares index decreased by 0.4% or 15.02 points to end at 3,670.57.

This was the PSEi’s worst finish in over five months or since it closed at 6,006.34 on April 8.

“The index continued to flirt with the 6,000 level as political noise continues to cloud investor sentiment,” AP Securities, Inc. said in a market report.

President Ferdinand R. Marcos, Jr. said no one will be exempt from an independent investigation into alleged anomalies in infrastructure projects, as he vowed to rebuild public trust as protests over corruption loom, Reuters reported.

Mr. Marcos assured the graft-weary public that the probe would break from past efforts, calling it an “inflection point” in how the government operates and spends funds.

He appointed a former Supreme Court justice to lead a newly formed commission and said it would tackle all wrongdoers no matter who they are, with congressional investigations already implicating several powerful political figures.

“The local market declined on its first day of the week, weighed by the weakness of the Philippine peso against the US dollar,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a market report. The peso dropped by 8.10 centavos to close at PHP 57.181 per dollar on Monday, and has ended at the PHP 57 level for four consecutive sessions as markets await the US Federal Reserve’s policy meeting this week, where it is expected to deliver its first rate cut since late last year.

“The lack of a local positive catalyst also caused investors to exit the market. Foreign investors were net sellers for the day, with net outflows… adding to the market’s drop,” Mr. Tantiangco said.

Net foreign selling was at PHP 473.25 million on Monday, a reversal of the PHP 293.44 million in net buying recorded on Friday.

Most sectoral indices closed lower. Financials fell by 2.43% or 50.02 points to 2,006.24; holding firms decreased by 1.19% or 60.31 points to 4,985.73; property went down by 1.19% or 29.90 points to 2,473.36; and mining and oil dropped by 0.29% or 33.82 points to 11,436.02.

Meanwhile, services increased by 0.99% or 21.43 points to 2,178.54, and industrials climbed by 0.32% or 28.90 points to 8,983.85.

Value turnover went down to PHP 6.24 billion on Monday with 3.48 billion shares traded from the PHP 6.82 billion with 6.27 billion stocks that changed hands on Friday.

“Converge ICT Solutions, Inc. was the day’s top index gainer, jumping 6.43% to PHP 11.92. DigiPlus Interactive Corp. was the main index laggard, plunging 7.04% to PHP 18.50,” Mr. Tantiangco said.

Decliners outnumbered advancers, 117 to 84, while 53 names were unchanged. — A.G.C. Magno with Reuters

Philippine external debt jumps to USD 149B

The Philippines’ outstanding external debt jumped to a record USD 148.87 billion as of end-June amid the weakening of the US dollar, the Bangko Sentral ng Pilipinas (BSP) said.

Central bank data showed the country’s external debt rose by 14.4% from USD 130.318 billion in the same period last year.

“The increase in external debt was driven primarily by borrowings, which included bond issuances by the National Government amounting to USD 5.83 billion and external financing tapped by local banks amounting to USD 3.44 billion,” the BSP said in a statement.

Quarter on quarter, external debt inched up by 1.5% from the USD 146.74 billion logged at the end of the first quarter.

“The increase in external debt for Q2 (second quarter) 2025 was primarily due to valuation effects from the depreciation of the US dollar,” the BSP said.

External debt accounts for all borrowings by residents from nonresidents.

The BSP said the external debt level remained “sustainable,” equivalent to 31.2% of gross domestic product. This was better than the 31.5% in the previous quarter but higher than the 28.9% a year ago.

The central bank said the weaker greenback increased the US dollar equivalent of borrowings denominated in other currencies by USD 1.49 billion.

In the April-to-June period, the peso recorded a strong performance against the dollar as it traded between the PHP 55 and PHP 56 level, averaging PHP 56.581 as of end-June.

“The net acquisition of Philippine debt securities amounting to USD 660.96 million also contributed to the increase (in external debt), while net repayments amounting to USD 315.67 million partially tempered the increase in the country’s external debt,” the BSP said.

Most of the country’s public sector obligations, amounting to USD 88.371 billion, were from the National Government while the rest came from the BSP (USD 3.919 billion) and government banks (USD 1.81 billion).

Japan remained the Philippines top creditor with loans amounting to USD 15.599 billion, followed by the United Kingdom with USD 6.358 billion and Singapore with USD 4.837 billion.

The borrowing mix was composed mainly of US dollar-denominated debt, followed by debt in Philippine peso and debt in Japanese yen.

As of the second quarter, the country’s short-term external debt based on remaining maturity concept (STRM) was at USD 28.63 billion. STRM debt is composed of loans with original maturities of one year or less plus amortization on medium and long-term accounts falling due within the next 12 months.

“This level remains well-covered by the country’s gross international reserves (GIR) of USD 106 billion, providing 3.7 times cover for short-term obligations,” the BSP said.

“The country’s GIR-to-STRM debt ratio remains at par with emerging economy peers.”

Meanwhile, the BSP said resident borrowers’ lower principal and interest payments brought the debt service ratio down to 8.7% during the period from 9.8% a year ago. This ratio measures a country’s capacity to meet its obligations based on its foreign exchange earnings.

“This resulted from lower principal and interest payments by resident borrowers as of the second quarter of 2025,” it said.

BSP data showed the public sector’s external debt went up by 88.2% to USD 94.801 billion at end-June from USD 50.36 billion the previous year.

Private sector obligations, on the other hand, declined by 32.3% year on year to USD 54.072 billion from USD 79.83 billion a year ago. — Katherine K. Chan

Biz groups say independent body can help restore investor confidence in Philippines

The Philippines’ largest business groups on Sunday expressed confidence the newly created Independent Commission on Infrastructure (ICI) could help restore investor confidence in the country’s public works program.

The Philippine Chamber of Commerce and Industry (PCCI) said the commission, tasked with probing anomalies in projects such as flood-control systems, is well positioned to drive systemic reforms that will improve governance and efficiency in big-ticket projects.

“The ICI, as currently composed and empowered, is a strong signal of the President’s political will to address infrastructure anomalies, especially in flood control,” the group said in a statement.

The ICI will be composed of former Public Works and Highways Secretary Rogelio L. Singson and former Chair of the Procurement Policy Board-Technical Support Office, Rossana A. Fajardo. Ms. Fajardo is now the country managing partner at SGV and Co.

Baguio City Mayor Benjamin B. Magalong will also be an adviser.

Mr. Marcos is expected to name the chairman this week.

“This strategically balanced team combines operational, institutional, and investigative strengths that can translate findings into actionable reforms,” the PCCI said.

This comes as the government intensifies efforts to crack down on corruption that led to incomplete and nonexistent flood mitigation projects worth billions of pesos.

“With its strong legal foundation and credible composition, the ICI can become a cornerstone institution for safeguarding public funds and ensuring that infrastructure projects deliver real value to the Filipino people,” the group said.

The PCCI said sustained funding, independence from political influence, and seamless interagency cooperation will determine whether the ICI can close procurement loopholes and reduce corruption risks that have historically delayed infrastructure pipelines.

The Federation of Philippine Industries (FPI) also welcomed the commission’s creation, saying it aligns with its long-standing push for a clean, rules-based market anchored on strict Philippine National Standards compliance.

“The ICI’s work will clean up a decade of flood control anomalies, restore trust in public works, and cut the corruption premium that drives up costs,” FPI Chairperson Elizabeth H. Lee said in a statement on Sunday.

“That means cheaper financing, stronger investor confidence, and a manufacturing sector that wins on standards, integrity, and quality — now and for years to come.”

By dismantling entrenched networks inflating costs and distorting competition, Ms. Lee said the ICI could allow compliant firms to access more affordable financing for capital-intensive upgrades, while attracting higher-quality bidders more likely to source inputs from local manufacturers.

The ICI has the power to issue subpoenas, request financial records and recommend preventive suspensions.

It may also endorse evidence for prosecution and collaborate with technical experts in support of its investigations.

BIR support

Meanwhile, the Bureau of Internal Revenue (BIR) has offered its services to the newly formed ICI.

“The entire BIR is ready to help the ICI if necessary, and the BIR will use all its powers granted by law to go after those who seek to use public funds for personal gain or greed,” BIR Commissioner Romeo “Jun” D. Lumagui, Jr. said in a statement.

“As a government agency that collects taxes to fund projects for the Filipino people, we aim for every Filipino to live well through the proper use of taxes,” Mr. Lumagui said.

The BIR earlier said the tax fraud investigation in the first batch of individuals linked to flood control anomalies, such as Cezarah Rowena “Sarah” Discaya and Pacifico “Curlee” F. Discaya II are almost concluded.

The BIR on Sept. 2 served contractors with Letters of Authority, which authorizes a tax audit on those who may have underpaid or evaded taxes.

The BIR warned that it will not issue an updated tax clearance, a document that guarantees that every contractor has no outstanding tax liabilities and has duly filed and paid all applicable taxes.

Unable to present this clearance will result in the suspension of contract settlements and the imposition of a tax lien over the contract amount in favor of the government.

Finance Secretary Ralph G. Recto earlier said corruption related to flood control projects may have cost the Philippines between PHP 42.3 billion and PHP 118.5 billion in average economic losses since 2023. — Chloe Mari A. Hufana and Aubrey Rose A. Inosante

Higher terminal fees take effect at Manila’s main airport

The operator of the Ninoy Aquino International Airport (NAIA) began charging higher terminal fees on Sunday, a year after it took over the country’s main gateway.

In a statement, the New NAIA Infrastructure Corp. (NNIC) said the terminal fees were adjusted for the first time in 20 years to sustain the airport’s operations and upgrades.

“Even with the adjustment — set by government with the Asian Development Bank as adviser — NAIA’s rates will only match other local airports and remain among the lowest in Asia,” the company said.

The passenger service charge (PSC), also known as terminal fee, nearly doubled to PHP 950 from PHP 550 for international departures. The terminal fee for domestic departures was raised to PHP 390 from P200.

Since NNIC took over the operations last year, the company said it has already remitted PHP 48.3 billion to the government, including a PHP 30-billion upfront payment, with 82% of revenues going directly to the state.

NAIA received 51.7 million passengers since Sept. 13, 2024, a 6% increase year on year, and handled 283,771 flights.

“Operational changes such as reconfiguring aircraft parking stands, expanding taxiway movements, and removing abandoned aircraft freed up valuable space for smoother airside operations,” the company said.

NNIC also said it is preparing to introduce a facial recognition system that will allow travelers to “check in, drop bags, clear security and board flights using just their face.”

“Operating an airport the size and scale of NAIA will always be demanding. But what this first year has shown is that with teamwork, discipline, and the dedication of our people, real change is possible… Together with government and our partners, we will sustain these gains and finally deliver a truly world-class NAIA,” NNIC President Ramon S. Ang said.

Last year, the NNIC, formerly the SMC SAP & Co. Consortium, inked a PHP 170.6-billion contract to operate, maintain, and upgrade the country’s primary gateway for 25 years. — Sheldeen Joy Talavera

ODA partners may keep close eye on how Philippines addresses corruption

The Philippine government’s response to corruption allegations involving flood control projects could have far-reaching implications for its official development assistance (ODA) portfolio, the Department of Economy, Planning, and Development (DEPDev) said.

DEPDev Undersecretary Rosemarie G. Edillon said on Thursday that the country’s ODA partners will be looking at how the government will address the issues of corruption in flood control and other infrastructure projects.

“(ODA partners) will take note of the fact that (this) issue being discussed out in the open. They’ll be looking for details on how exactly we address it,” Ms. Edillon told reporters on the sidelines of the Philippine Chamber of Commerce and Industry event on Thursday.

Infrastructure projects are now facing more scrutiny after allegations of corruption in flood control projects involving lawmakers and contractors.

Ms. Edillon said that ODA-funded projects undergo strict appraisal and monitoring, and that additional safeguards are being considered.

“If it’s ODA, then it goes through us for appraisal, etcetera… We could assure them of other measures that we will be putting in place,” she said.

The country’s ODA portfolio rose by 6% to $39.6 billion in 2024. ODA is a form of aid, typically loans and grants with concessional terms, provided by governments or international organizations to developing countries.

The country’s top sources of ODA include Japan, the Asian Development Bank, World Bank, the United States and South Korea.

Ms. Edillon also addressed concerns over job losses in the construction sector due to the ongoing investigations, describing them as temporary.

She stressed the need for the government to address the corruption in public works projects, so that there will be no impact on jobs in the construction industry.

Ms. Edillon called for stronger transparency mechanisms and encouraged private sector participation in monitoring infrastructure projects.

She cited the Department of Budget and Management’s Digital Information for Monitoring and Evaluation (DIME) initiative, which uses satellite imagery, drones, and geotagging to track government projects and prevent so-called “ghost” infrastructure.

Meetings in Japan

Meawhile, Mr. Recto and DEPDev Secretary Arsenio M. Balisacan have held high-level meetings with Japanese officials, including the Japan International Cooperation Agency (JICA).

Japan remains the Philippines’ largest development partner, with USD 13.23 billion in active commitments across 82 projects.

The officials discussed the progress of major infrastructure projects, including the Metro Manila Subway Project, the North-South Commuter Railway Project, and the Metro Rail Transit Line 3 Rehabilitation Project.

The meeting followed an Aug. 27 dialogue between JICA’s Parliamentary League and Philippine officials in Pasay City, which tackled implementation delays due to right-of-way and counterpart funding issues.

Mr. Recto also met with the Kankeiren Executive Committee, representing over 1,300 Japanese firms, to promote the Philippines as a strategic investment destination.

“In the Philippines, you are in the right place, at the right time, with the right partners, and the right opportunities to win big,” he was quoted as saying in a Department of Finance statement.

He cited the country’s two “A-” investment-grade ratings from Japanese credit agencies as a vote of confidence in the Philippines’ fiscal management and growth trajectory.

Last month, Japanese credit watchdog Rating and Investment Information, Inc. affirmed the Philippines’ investment-grade “A-” rating with a “stable” outlook, citing its steady economic growth. — Aubrey Rose A. Inosante

DoTr to issue NSCR bid soon amid interest from 28 Japanese firms

The Philippines is doubling its efforts to find the operator for the North-South Commuter Railway (NSCR), the Department of Transportation (DoTr) said, as it hopes to issue bidding documents later this month or early October.

This came after the DoTr concluded the final leg of its roadshow for the NSCR project which gained the interest of foreign companies, mainly from Japan.

“We’re very happy to see the attendance in this fourth leg for our O&M (operations and maintenance) roadshow. It only goes to show that we are in the right direction in terms of structuring and developing this O&M concession,” Transportation Undersecretary Timothy John R. Batan said in a statement on Thursday.

He said there was a high turnout of participants during the final leg of the NSCR market sounding event in Japan.

Mr. Batan said around 28 Japanese companies including Mitsubishi Corp., Hitachi Ltd., Tokyo Metro, Sumitomo Corp.; and Alstom Japan have signified their interest in the O&M for NSCR.

The DoTr has been ramping up its roadshows to promote the PHP 229.32-billion O&M contract for the NSCR project. It had conducted similar events in Singapore and Paris, France.

The agency will now consolidate comments from roadshow participants which will be included in the bidding document and concession agreement to be issued within this month or next month, Mr. Batan said.

Asian Development Bank (ADB) Director for Office of Markets Development and Public-Private Partnership (PPP) Siddhartha Bhaskar Shah said the ADB and the DoTr expect to award the concession by March or April 2026.

“The immediate next step to look forward to is the launching of the bid documents which we intend to do by the end of this month and will kick off the formal bidding process which will continue over the next six months with the idea that the bid will be awarded sometime in the March-April time frame,” he said.

The ADB is the technical advisory services provider of the DoTr for the NSCR project.

“We will reflect those in our bidding documents, our concession agreement, so by the end of September of the first week of October we will be able to officially launch and publish the tender for this O&M concession,” Mr. Batan said.

Nigel Paul C. Villarete, a senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said public-private partnerships for O&M projects are more attractive compared to build-operate-transfer (BOT) types of projects.

“I am not particularly sure if roadshows can help a lot, but these are more advertising efforts. Even without those (roadshows), we’ll get the full array of prospective PPP operators from all over,” Mr. Villarete said in a Viber message.

“The more important thing is that the agency properly drafts the proposed PPP contracts that strikes a balance between sufficient protection for the country’s economic interests and high expected returns to draw the interests of private sector capital,” he added.

The 147-kilometer NSCR will connect Malolos, Bulacan with Clark International Airport, and Tutuban, Manila with Calamba, Laguna. The PHP 873-billion project is co-financed by the Japan International Cooperation Agency (JICA) and the Asian Development Bank. It will have 35 stations and three depots.

According to the DoTr, the NSCR can partially operate its Valenzuela to Malolos line by 2027; while the Malolos to Clark segment can start operations by 2028. — Ashley Erika O. Jose

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