UDENNA Corp., the holding company of businessman Dennis A. Uy, has received from the Department of Transportation (DOTr) the original proponent status for its unsolicited proposal for the development of a monorail in Davao City. The proposal is now with the National Economic and Development Authority (Neda) for review.
Transportation Undersecretary Ruben S. Reinoso Jr. said the Neda Investment Coordination Committee (ICC) is now reviewing the P30-billion proposal, which was submitted in March 2018.
“The original proponent status was granted on July 17,” he said in a text message. “The proposal’s project cost is P30 billion.”
Under its proposal, Udenna will 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 [CBD].”
The monorail, called the Davao People Mover, will run for 13 kilometers long starting from MacArthur Highway to JP Laurel Avenue passing through the city’s central business district with 16 stations.
Udenna aims to start construction of the project by 2019, and should be fully operational after four years. The unsolicited offer carries a 35-year concession period.
A project brief said the proposed monorail “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,” as modular vehicles allow for simpler 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 project brief read.
It added that the 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), which recommended the construction of a Davao City Mass Transit Line in the immediate term up to 2022.
Jica’s recommendation involves the construction of a 15-kilometer mass-transit line that traverses “almost the same alignment as that of the proposed monorail.”
Udenna is studying extending the line toward Buhangin and all the way to the Davao International Airport.
Once approved, the proposal will undergo a Swiss Challenge, which essentially allows other groups to outbid the original proponent. In turn, the original proponent will have the right to match or to give a counteroffer to ultimately win the deal.
Aside from the monorail, Uy, a native of Davao and a close associate of President Duterte, also offered several other unsolicited infrastructure proposals to the government. These include the development of Davao’s airport and seaport.