11.7-KM Cavite extension LRT 1 project proponents bag P24-B loan

MANILA, Philippines - The Light Rail Manila Corp. (LRMC) signed yesterday a P24-billion loan agreement  for the LRT 1 Cavite Extension project.

Light Rail Manila Corp. (LRMC) president and chief executive officer Jesus Francisco said the consortium,  composed of Metro Pacific Investments Corp.’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp. and Macquarie Infrastructure Holdings (Philippines) PTE Ltd., has signed the 15-year Omnibus Loan and Security Agreement with Metropolitan Bank & Trust Co., Security Bank Corp. and Rizal Commercial Banking Corp.

In a statement, LRMC president and CEO Jesus Francisco said  the agreement ‘’gives us significant headway toward the construction and commissioning of the much-awaited Cavite Extension which will benefit an additional 300,000 passengers from four big cities in southern Manila.’’

The Cavite Extension will connect to the existing LRT 1 system from Baclaran up to Niyog, Cavite through eight new stations: Aseana, Manila International Airport, Asia World, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote and Niog.

Aside from the loan agreement, LRMC has also entered into a 450-million euro contract with French firms Bouygues Travaux Publics and Alstom Transport for the engineering, procurement and construction of the LRT 1 Cavite Extension project.

Bouygues will provide the railway infrastructure for the extension, while Alstom Transport will be responsible for the railway systems work, including track work, power supply, train control and signaling system, communications systems as well as the construction of the operations control system to provide seamless operation between the existing system and the extension.

With the signing of the two agreements, Francisco said LRMC is confident it “can start construction this year.”

Fracisco said LRMC and its contractors hope to begin construction of the 11.7-kilometer Cavite extension once right of way is delivered by the Department of Transporation and Communications  by the middle of the year.