Gov’t to bid out LRT 1 extension in April

Cherrie Regalado

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In a newspaper ad on December 3, the Transportation department invites investors to bid for the biggest PPP project so far

READY FOR AUCTION. The Transportation department is inviting firms to participate in auction of the railway deal on April 28, 2014. Photo courtesy of the PPP Center.

MANILA, Philippines – The Aquino administration will bid out the P64.9-billion Light Rail Transit 1 (LRT 1) Cavite extension project to investors in April next year.

In an invitation to bid published in newspapers on Tuesday, December 3, the Department of Transportation and Communications (DOTC) announced interested groups are required to submit prequalification documents and bid proposals on or before April 28, 2014.

The LRT-1 extension is the biggest infrastructure project to be auctioned off under the Public-Private Partnership (PPP) program, the centerpiece of the Aquino administration’s development goals. Launched in 2010, the PPP aims to create vital infrastructure that will help sustain the country’s economic growth.

The “Instruction to Bidders” is available for P1 million for new bidders, and P500,000 for new consortiums, which include one member that was previously prequalified by DOTC.

On the other hand, DOTC said the document is free for groups that were prequalified to join the first bidding in August as long as original members of the group are intact.

A total of 4 groups were prequalified by DOTC in the August bidding, which was declared a failure.

The Transportation department then revised the terms of the project, increasing its cost to almost P65 billion from P60 billion. The department revised the terms to make them more attractive for investors.

The National Economic and Development Authority (NEDA) board approved the new terms, along with other PPP projects, in a meeting on November 21.

Project components

The project will extend the existing LRT 1 system by 11.7 kilometers from Baclaran station in Pasay City to Bacoor in Cavite. It has the following components:

  • Operation and maintenance of the existing Line 1 system including depot, electrical and mechanical system, rolling stock, stations, tracks and other related assets
  • Commissioning of the Cavite extension composed of the design procurement, engineering, construction, installation, completion, and testing
  • Integration of the existing Line 1 system and the Cavite extension system
  • Operation and Maintenance of the extended system
  • System upgrade covering whole-of-life investments for the extended system

DOTC earlier announced that it would expedite the bidding of the railway contract by adopting a single-stage bidding process.

This type of bidding requires interested groups to submit prequalification documents as well as technical and financial proposals all at the same time. –

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