CEO Dennis Uy Intends To Bring An Urban Railway System To Davao

May 01, 2018

The Department of Transportation (DOTr) has declared the proposal of Udenna Corporation to build the first monorail system in Davao City called the Davao People Mover in accordance with the documentary requirements stated in the BOT Law and its IRR.

In March this year, the Udenna Corporation submitted an unsolicited proposal to develop, finance, operate, maintain and manage an urban railway transport system in Davao City to address the worsening road traffic congestion especially in the City’s Central Business District. The 13km long Davao People Mover will run from McArthur Highway to JP Laurel Avenue passing through the City’s Central Business District with 16 stations. A 6km Line 2 that will spur towards Buhangin and all the way to the Davao International Airport is under study.

“The acknowledgement and completeness review by DOTr is a major milestone before securing the Original Proponent (OP) status to Udenna Corp. An incomplete unsolicited proposal will not move forward based on the BOT law,” said Meldin Al Roy, President and COO of Udenna Infrastructure Corp.

The proposed Davao People Mover project is targeted to start in 2019 through a Public-Private-Partnership (PPP) scheme. The Project cost is about PhP25 billion for a concession period of 35 years, inclusive of the four-year construction timetable.

“Our proposal is aligned with the results of the recently completed Davao City Infrastructure Development Plan and Capacity Building Project funded by the Japan International Cooperation Agency (JICA).The JICA study recommends the construction of a Davao City Mass Transit Line in the immediate term up to 2022,” according to Mr. Roy. The line recommended by JICA is 15km long and traverses almost the same alignment as that of the proposed monorail.

The proposed Davao People Mover is intended to reduce traffic congestion in the urban areas of Davao City; provide a modern, reliable, high-quality transit system interconnecting major focus points; and, ensure an adequate, long-term, and sustainable transport system while supporting the current shift to cleaner sources of energy. The monorail technology is the preferred solution for urban railway transit best suited for a rapidly growing population in Davao City. The modular vehicles allow for simplified capacity expansions. Since the alignment will go through heavily built-up areas, the monorail allows for quick installation of the guideways, minimal disruption during construction, and can handle sharp curves. The system is also environment-friendly with its low-noise emission and low pollution systems.

“The DOTr is proceeding with the project evaluation which is expected to take about 120 days based on the timelines set by the Build-Operate-Transfer (BOT) Law,” Roy said.

“Our infrastructure projects complement with the government’s ‘Build, Build, Build’ program,” Mr. Roy added. “Udenna Infrastructure, as part of the fast-growing Udenna Group, intends to participate in the development of infrastructure facilities in the country, including terminal, port, airport, water, energy development and operations and other related facilities.”

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