Sumitomo Mitsui bags contract to build 2 Metro Manila subway stations

MANILA, Philippines — Infrastructure giant Sumitomo Mitsui Construction Co. Ltd. (SMCC) has secured the P27 billion contract to put up two stations, including tunnels, in Quezon City for the Metro Manila Subway.

In a notice of award, the Department of Transportation (DOTr) allocated Contract Package (CP) 103 worth P21.14 billion and Y14.95 billion or around P6.1 billion—to SMCC.

CP 103 involves the civil works for the stations of Anonas and Katipunan, which is located inside Camp Aguinaldo, as well as the tunnels connecting them.

Based on the notice, SMCC will be paid P21.12 billion and Y14.94 billion for the delivery of work items under CP 103. The peso amount includes daywork of P210.12 million and a provisional sum of P475 million.

However, the DOTr had to adjust the bid price given the rising cost of products and services not only here in the Philippines, but also in Japan. As such, the adjusted price for CP 103 went up to P21.14 billion and Y14.95 billion, exclusive of value added tax.

Moving forward, the contract will require concurrence from the Japan International Cooperation Agency (JICA) given that the bulk of the cost to build the subway comes from a loan provided by JICA.

Further, the DOTr asked SMCC to comply with the documentary requirements mandated under the Guidelines for Procurement under Japanese Official Development Assistance Loans.

The notice of award was signed by DOTr head of procuring entity Kim Robert de Leon and was received by SMCC managing executive officer Hitoshi Yamaji.

The DOTr is speeding up construction works on the Metro Manila Subway, the first underground railway of the country. Starting Oct. 3, portions of Meralco Avenue, one of the busiest roads in Pasig City, will be closed for traffic until 2028 to make way for the subway project.

The P488.48 billion subway, financed by JICA, will stretch for 33 kilometers across seven cities, from Valenzuela City to Pasay City. The railway is expected to cut travel time between Quezon City and the Ninoy Aquino International Airport to 35 minutes.

Aside from SMCC, infrastructure builder Megawide Construction Corp. is also eyeing several of the contracts to put up stations and their tunnels for the Metro Manila Subway.

After receiving the P17.75 billion CP 104—comprising the stations of Ortigas North and Ortigas South—in May, Megawide will bid for CP 105 made up of the stations connecting Mandaluyong City and Taguig City.