Aquino, NEDA to tackle LRT-1 project in November

MANILA, Philippines – Finally, a schedule.

On the second week of November, the country’s highest policy economic body will tackle the proposed changes in LRT-1 Cavite Extension project, one of the biggest infrastructure under the Aquino government’s public-private partnership scheme, according to Transportation Secretary Joseph Emilio Abaya.

The rebidding of the P60 billion rail project meant to improve access between Metro Manila and areas in Cavite province has been delayed due to an overhaul of the project terms, which the board of the National Economic and Development Authority (NEDA) chaired by President Benigno Aquino III needs to approve first.

The Zamboanga crisis in September and the President’s visit in the security challenged western Mindanao city further delayed the schedule of the NEDA board meeting. (READ: With Aquino in Zamboanga, LRT-1 project delayed further)

“NEDA has scheduled it on the second week of November,” Abaya told reporters. 

The policy making body will discuss the 5 major issues in the revised project terms: real property tax, power rates, warranty on the structure, fare adjustments, and allowing a negative bid.

These will be presented first to the Investment Coordination Committee (ICC), which is NEDA’s technical unit, before the contract changes are presented to the NEDA Board.

“The President will be there and he has his own questions. We are prepared for that,” Abaya explained.

The August 25 bidding of the LRT-1 project was declared a failure after only one of the prequalified bidders participated. The other major proponents backed out due to concerns about the viability of the project.

After the project terms were overhauled, the project now includes state subsidies that made the rail project more commercially attractive.

“Essentially we start from scratch,” Abaya said reiterating that the prequalified bidders would have to join the prequalification procedures again.

Abaya said the Department of Transportation and Communication (DOTC) will publish the invitation to bid likely by November, while the the deadline for the submission of bids would be some time in the first quarter of 2014.

The Ayala and San Miguel groups, as well as construction firm Megawide have expressed interest in participating in the rebidding. 

The Cavite Extension project would increase the span of LRT Line 1 to 32.4 kilometers from 20.7 kilometers. 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 4 million residents of Parañaque, Las Piñas, and the Province of Cavite.

Months before the May 2013 elections, President Aquino has repeatedly mention the LRT-1 extension project during his visits in Cavite, a vote-rich province. – Rappler.com