MVP seeks to clarify MRT-LRT ticket project revenue sharing

Aya Lowe

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MVP asks for clarification before proceeding with bidding for the Automated Fare Collection System

MVP asks for clarification before proceeding with bidding for AFCS project. Photo by Aya Lowe/Rappler

MANILA, Philippines – Manny V. Pangilinan-led infrastructure conglomerate Metro Pacific Investments Corp (MPIC) is asking for clarifications for the revenue sharing agreements with the Automated Fare Collection System (AFCS) project before they proceed with the bidding.

The Department of Transportation and Communications (DOTC) on May 8 announced that the consortium of MPIC and the Ayala group was qualified for bidding for the P1.72 billion single contactless ticketing system for the Metro Rail Transit (MRT) and Light Rail Transit (LRT).

However, Pangilinan said some clarifications need to be made before they proceed with the bidding.

Speaking at MPIC’s first quarter results briefing, Pangilinan said they need some clarification on revenue sharing.

“It appears to us that the collections on toll revenue will be done with the AFC system and so that the operators of the large rail would be separate from the collector of the revenues. The question that arises is, how you connect someone that operates the rail and gets expenses versus someone who could be a large entity that collects the revenues on your behalf,” said Pangilinan.

“Someone is running the railway and someone else collecting the toll revenues. The question is how do you reconcile. It’s easier if the revenues go to the light rail operators who have responsibility for running it and maintaining it and possibly expanding it,” he added.

MPIC president, Jose Ma. Lim said that they have suggested that they be allowed to get involved with the collection process.

“We then pass it on to the hearing council, which can be operated by the third party, but we have control over the passengers and the revenues or the government should guarantee the collections. Because otherwise the creditors would be LRT consortium will have no recourse or security that there is no control on the collections,” said Lim.

According to Lim, the DOTC has insisted that it can be done by a 3rd party.

The MRT-LRT single ticket is expected to not only serve as a stored-value train ticket, but also as payment for bus rides and toll fees. It may also be used as a debit card and for electronic banking and shopping purposes. 

On May 8, the DOTC announced that 5 consortia have been qualified to bid for the P1.72-billion AFCS project. These are the AF Consortium, led by the Metro Pacific and Ayala groups; Comworks Consortium, which includes Taiwan’s Kaohsiung Rapid Transit Corp.; E-Trans Solutions Joint Venture Inc. Consortium, which includes Eastwest Banking Corp.; Megawide-Suyen-Eurolink Consortium, which will tap the experience of Singapore’s EZ-Link Pte. Ltd.; and SM Consortium, led by several companies of the Sy family.

“We are pleased to announce that five interested groups have prequalified to bid for the AFCS Project, one of our first PPP (Public-Private Partnership) offerings,” the DOTC said. It added that the prequalified consortia will have until August 30, 2013 to prepare their bids for the project.

The AF Consortium is composed of Metro Pacific Investments Corporation (MPIC), Smart Communications Inc., Globe Telecom Inc., BPI Card Finance Corp., AC Infrastructure Holdings Corp. and NTT Data Corporation. The partners for the venture include Bank of Philippine Islands (BPI), Smart International Pte Ltd., Octopus Transactions Ltd., Cubic Transport Systems (Australia) Pte Ltd., MSI Global, Accenture Inc., and IntraSystems SA. – Rappler.com

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