DOTC to award LRT-1 extension proj in 2 weeks

MANILA, Philippines - The tandem of infrastructure giant Metro Pacific Investments Corp. (MPIC) and conglomerate Ayala Corp. would have to wait for two more weeks before getting the green light for the P65 billion Light Rail Transit Line 1 (LRT1) Cavite extension project.

Transportation Secretary Joseph Emilio Abaya said the joint bids and awards committee (BAC) of the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) are now negotiating with the Light Rail Manila Consortium.

 â€œIn two weeks we expect to make an award. We are in the process of negotiating with the lone bidder,” Abaya said.

He pointed out that the government would try to convince the Light Rail Manila Consortium to further improve its P9.35-billion premium payment to the government for the public private partnership (PPP) project under the Build Operate Transfer (BOT) law or Republic Act 7718.

 â€œWe are mandated to negotiate,” Abaya explained.

The National Economic and Development Authority (NEDA) earlier approved the offer made by the Light Rail Manila Consortium.

“We haven’t awarded yet,” Abaya clarified.

The lead member of the group is MPIC Light Rail Corp. with 55 percent while other members include Ayala Corp.’s AC Infrastructure Holdings Corp. with 35 percent and Macquaire Infrastructure Holdings (Philippines) Pte Ltd. with 10 percent.

Other bidders including diversified conglomerate San Miguel Corp. (SMC) through SMC Infra Resources Inc., construction giant DMCI Holdings Inc., Filipino-owned Megawide Construction Corp., Spanish-owned Globalvia Inversiones SAU, Eco Rail Services Inc. of businessman Reghis Romero II, and Malaysian-owned MTD Philippines Inc. did not submit bids.

After a failed bidding, the NEDA Board approved last Nov. 21 the revised terms for the project including the payment of real property taxes (RPT) by the government.

The government also ensured the integrity of the facility’s structure for a two-year period, approved a five-percent fare increase upon completion of the project, and allowed the submission of negative bids.

MPIC president Jose Maria K. Lim earlier said the consortium is ready to make  20 percent of the premium payment before the signing of the concession agreement for the PPP project.

Lim said the balance of 80 percent would be paid during the 32-year concession period.

“We are expecting the right of way to start in 2015 and we have to complete the construction of the entire extension by 2020,” he said.

The Cavite extension project would increase the span of Line 1 from 20.7 kilometers to 32.4 kilometers with a new south endpoint in Niog, Bacoor, Cavite.

Approximately 10.5 kilometers of the Cavite Extension System would be elevated and 1.2 kilometers would be at grade level. The government has set aside P30 billion to acquire up to 39 new Light Rail Vehicles for this project.

The extension would open up the Line 1 services to the nearly four million residents of Parañaque, Las Piñas, and the province of Cavite.

The construction of the tracks, the stations and all its attendant facilities, as well as operation and maintenance worth about P30 billion was the one bidded out while the other half of the P60-billion project, covering the purchase of the coaches,would come from the government through official development assistance (ODA).