A Sustainable Asset Valuation of the Mass Rapid Transit System in Pampanga, Philippines

The assessment finds that the proposed MRT system in Pampanga, consisting of four bus rapid transit lines and one light rail transit line, provides significant societal value. While traditional benefit-to-cost ratios (BCR) suggest the project is not investment-worthy at 0.62 or 0.63, the sustainable BCR (S-BCR) is 1.72. Over a 30-year period from 2023 to 2053, the project is estimated to generate a cumulative discounted net benefit of PHP 360.3 million (USD 6,402 million). The most significant impacts are the avoided costs of traffic accidents (PHP 239.7 million), time savings (PHP 182,367 million), and avoided vehicle operating costs (PHP 109,988 million).

• The proposed MRT system in Pampanga, comprising four bus rapid transit lines and one light rail transit line, is projected to generate a cumulative discounted net benefit of PHP 360.3 million (USD 6,402 million) over a 30-year period from 2023 to 2053.
• There is a significant disparity between traditional financial assessments and sustainable valuations; the traditional benefit-to-cost ratio (BCR) is 0.62 or 0.63, whereas the sustainable BCR (S-BCR), which accounts for societal and environmental benefits, is 1.72.
• The primary economic drivers of the project's value are the avoided costs of traffic accidents, valued at a cumulative discounted PHP 239.7 million (USD 4,259 million), followed by time savings at PHP 182,367 million (USD 3,240 million) and avoided vehicle operating costs at PHP 109,988 million (USD 1,954 million).
• The project involves high capital investment costs totaling PHP 434,696 million (USD 7,722 million) through 2053, with projected cumulative revenues from ticket purchases and system use reaching PHP 185,637 million (USD 3,298 million).

APA

International Institute for Sustainable Development (n.d.). A Sustainable Asset Valuation of the Mass Rapid Transit System in Pampanga, Philippines. https://www.iisd.org/system/files/2024-08/savi-mass-rapid-transit-pampanga-philippines-summary.pdf

Chicago

International Institute for Sustainable Development. A Sustainable Asset Valuation of the Mass Rapid Transit System in Pampanga, Philippines. n.d. https://www.iisd.org/system/files/2024-08/savi-mass-rapid-transit-pampanga-philippines-summary.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=A Sustainable Asset Valuation of the Mass Rapid Transit System in Pampanga, Philippines |url=https://www.iisd.org/system/files/2024-08/savi-mass-rapid-transit-pampanga-philippines-summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndsustainable, author = {{International Institute for Sustainable Development}}, title = {{A Sustainable Asset Valuation of the Mass Rapid Transit System in Pampanga, Philippines}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/2024-08/savi-mass-rapid-transit-pampanga-philippines-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }