DOTC nixes further delay in LRT1 rebid

MANILA, Philippines - The Department of Transportation and Communications (DOTC) sees no reason to further delay the rebidding of the P65-billion Light Rail Transit line 1 (LRT1) Cavite extension project scheduled this month. 

DOTC undersecretary Jose Perpetuo Lotilla said the government has already addressed all the concerns raised by the private sector that resulted in a failed bidding last August 

“As far as the government is concerned we’ve tried to make the bid parameters as fair as possible taking into consideration the concerns of the private sector on viability,” Lotilla said.

The DOTC and the Light Rail Transit Authority (LRTA) declared a failed bidding after only one of the four prequalified bidders – Light Rail Manila Consortium – submitted a bid last Aug. 15 while other major proponents backed out due to concerns about the viability of the project. 

After a failed bidding, the National Economic and Development Authority (NEDA) Board chaired by President Aquino 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. 

The cost of the public private partnership (PPP) project went up by P5 billion from P60 billion due to additional components that was originally intended to be pursued as separate projects but was included in the project to make it more robust.

The groups interested in joining the rebidding include the tandem of infrastructure giant Metro Pacific Investments Corp. and conglomerate Ayala Corp. through the Light Rail Manila, construction giant DM Consunji Inc., Filipino-owned Megawide Construction Corp., Spanish-owned Globalvia Inversiones SAU, SMC Infra Resources Inc. of diversified conglomerate San Miguel Corp., Eco Rail Services Inc. of businessman Reghis Romero II, and Malaysian-owned MTD Philippines Inc. 

Lotilla said none of the interested bidders have signified intention to further defer the submission of bids scheduled this month.

The DOTC has already extended the deadline for the submission of bids for by another month to May 28 instead of April 28. 

“I think there is no reason to further delay it,” he said.

The agency has slashed the P6-billion subsidy down to P5 billion to be extended to the winning bidder and would be contained in the revised instructions to bidders (ITB) of the LRT1 Cavite extension project.