Tri-city Ferry System Project

Country: Philippines
City: Alaminos, Dagupan, San Fernando

Key Stakeholders and PartnersNational Economic Development Authority (NEDA), Public-Private Partnership (PPP) Center of the Philippines, local governments and relevant agencies/members of technical working group, etc.

CDIA SupportUS$ 500,000

Expected Downstream Financing$1 million (PPP, local financing institutions)

Infrastructure sectorsUrban Transport

CDIA priority impact areasClimate Change Mitigation and Adaptation; Environmental Improvement

Key City Development Issues

Alaminos, Dagupan, and San Fernando are three major cities along the coast of Lingayen Gulf in northwestern Philippines. Despite this, only land-based transport routes connect them, making travel inefficient in terms of distance and time.

The local governments have initiated the revival of a sea transport system connecting the three cities, by establishing a Technical Working Group – chaired by the National Economic Development Authority (NEDA) – that will identify and take forward the initiatives related to the Tri-City Ferry System (TCFS) Project. The proposed initiative is in line with the Philippine National Government’s 10-Point Agenda and identified in the Ilocos Regional Development Plan 2017-2022 as a possible alternative regional transport option that can contribute to the provision of a reliable inter-modal transport system. The project is envisaged to be implemented via a PPP modality.

Details of Cooperation

The primary objective of the CDIA-financed project preparation study (PPS) is to determine whether the ferry system project is appropriate for the three cities to take forward in cooperation with the national government. Specifically, the scope of CDIA’s technical assistance includes the following:

Broad review of the transport system in the three cities and the role of the proposed TCFS project;
Conduct of due diligence in terms of technical, economic, commercial, financial, and institutional aspects;
Undertaking feasibility study for the implementation of the project through PPP modality;
Identification of measures for the implementation of the infrastructure facilities, including fleet procurement; and

Preparation of a PPP Call for Proposals including the project parameters, instruction to bidders, invitation to bid, minimum performance standards and specification (MPSS), draft PPP agreement between the implementing agency and the private sector, payment mechanism, and bid evaluation criteria, etc.

Expected Development Impacts

When implemented accordingly, the project is expected to enhance interconnectivity in the three cities resulting in savings in travel time and vehicle operating costs. It will also provide better level of service to passengers and enhance their access to local employment opportunities as a result of increased economic and tourism activities. The project will further contribute to environmental improvement and climate change mitigation through the use of sustainable ferry vessels and the reduction of land-based transport emissions.