Transportation Secretary Arthur Tugade: The monorail and flyover project will help relieve traffic chokepoints in portions of Taft Avenue and Jose W. Diokno Boulevard. 

MANILA, Philippines—The SM Group is proposing to build an integrated monorail and flyover project in Pasay City to ease road congestion in Metro Manila, Transportation secretary Arthur Tugade said on Wednesday. Tugade led the signing of a memorandum of agreement with the Pasay City government for the EDSA-Taft Avenue to Diokno Boulevard Transit.

This will involve the construction of a Pasay Monorail system and EDSA-Tramo flyover.

The DOTr said the project will also be “interoperable” with the Light Rail Transit Line 1, Metro Rail Transit Line 3, EDSA Busway and EDSA Greenways project.

In a short video clip of the event that was shared by the DOTr, Tugade said the project will help relieve traffic chokepoints in portions of Taft Avenue and Jose W. Diokno Boulevard.

The DOTr said the signing followed a joint presentation made by Pasay City officials and property giant SM Prime Holdings Inc. last Sept. 7.

There were no additional details on the project itself.

The DOTr said the monorail was covered under its regulatory supervision and oversight while the flyover will be under a separate agreement with the Department of Public Works and Highways.

Pasay City will also transfer ownership of all components of the project to the national government after 50 years.

Because it was an unsolicited project, it will be built at no cost to the national government. Similarly, no direct guarantees, subsidies or equity will be provided, the DOTr said.

The department will issue an operating franchise for the project. Moreover, it will not be given any exclusivity “for any corridor vis-a-vis other transportation projects.”

The MOA also outlined the DOTr’s revenue sharing terms for fares.

This was pegged at 1 percent for P15 and below, 2 percent for rates above P15 up to P30 and 3 percent for rates above P30.

The DOTr will also have a 2 percent share in gross non-farebox revenues, referring to earnings made outside passenger rides.