DOTC set to award P64-B LRT 1 Ext

Abaya to issue notice of award to MPIC-Ayala Group this week

MANILA, Philippines - The Department of Transportation and Communications (DOTC) is set to award this week the P65-billion Light Rail Transit line 1 Cavite extension project to the tandem of infrastructure giant Metro Pacific Investments Corp. (MPIC) and conglomerate Ayala Corp.

Transportation Secretary Joseph Emilio Abaya said the agency would issue the notice of award to the Light Rail Manila Consortium once it receives the board resolution from the Light Rail Transit Authority (LRTA) approving the project.

“Once we receive the LRTA board resolution signed by the principals, we will then issue the notice of award. We hope to do it early or middle this week,” Abaya said.

The NEDA board chaired by President Aquino has approved the offer made last month by the Light Rail Manila Consortium.

Last Friday, the LRTA board finally approved the award of the public private partnership (PPP) project to the lone bidder that submitted a bid last May 28.

Abaya chairs the LRTA board that includes the heads of the Department of Public Works and Highways, Department of Budget and Management, Department of Finance, National Economic and Development Authority, Metropolitan Manila Development Authority, Land Transportation Franchising and Regulatory Board, LRTA administrator, and a representative from the private sector.

The lead member of the group is MPIC Light Rail Corp. with 55 percent while other members include Ayala’s AC

Infrastructure Holdings Corp. with 35 percent and Macquaire Infrastructure Holdings (Philippines) Pte Ltd. with 10 percent.

The consortium was the lone bidder that submitted an offer last May 28 while other prospective 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.

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

More than half of the project cost of the PPP project would cover the construction of the tracks, the stations and all its attendant facilities while P30 billion would be used to purchase the trains to be funded by the government through official development assistance (ODA).