MALOLOS CITY – The Department of Transportation (DOTr) has gained high confidence from investors for the operations and maintenance (O&M) of the 147-kilometer North-South Commuter Railway (NSCR) System, ensuring its effective, fast, and safe operation.
A total of 92 foreign and local investors will participate in the bidding for the O&M of the NSCR System. According to DOTr Undersecretary Timothy John Batan, this is a major preparation for the upcoming initial operation of the NSCR from Malolos City to its depot in the boundary of Meycauayan and Valenzuela cities in Metro Manila in December 2027.
The amended Public Service Act, Republic Act 11659, has also attracted significant investor interest, as it removes the limitation on foreign ownership, allowing 100% foreign investment in public service facilities.
Under the concession agreement, the O&M of the NSCR System will be awarded to a qualified private company for 15 years, extendable to 22 years. However, the NSCR System will remain government-owned, with the DOTr and Philippine National Railways retaining ownership.
The private company will not pass on the investment costs to passengers, as the DOTr will pay them directly. This means that any expenses incurred by the private sector in O&M, such as maintenance, electricity, and other aspects, will not result in increased fares.
The DOTr targets to award the P229.32 billion O&M contract to a qualified investor by mid-2026, marking the beginning of the NSCR System’s partial operation.
This project is the first railway project to be implemented under the hybrid public-private partnership model under the new PPP Code, signed into law by President Ferdinand R. Marcos Jr. as Republic Act 11966.
The NSCR System is the longest railway project currently being implemented in the Philippines, with a total investment of P873 billion, funded by the Japan International Cooperation Agency and the Asian Development Bank.
