34 firms keen on LRT, MRT fare collection project

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The firms buy pre-qualification documents for the bidding of the P1.72-B project

FARE COLLECTION. The national government intends to improve fare collection in the LRT and MRT through the P1.72 bilion-worth Automatic Fare Collection System project. Photo obtained from the PPP Center

MANILA, Philippines – Some 34 firms bought pre-qualification documents for the government’s P1.72-billion Automatic Fare Collection System (AFCS) Public-Private Partnership (PPP) project. 

In a statement on Thursday, April 11, the Department of Transportation and Communications (DOTC) said the documents would be submitted and evaluated on Friday, April 12.

The AFCS for the Light Rail Transit and Metro Rail Transit was one of the 8 projects rolled out by the PPP Center in 2012. The pre-bidding for the AFCS would be the second for the year after April 8’s pre-bidding for the NAIA Expressway project. 

“We have spared no effort to make sure that the project will attract many investors, while at the same time ensuring the best service for our people,” DOTC said. “As a result, 34 interested companies purchased invitation documents for pre-qualification, although we expect a lower number of participants tomorrow since many of them will have partnered with each other already.”

Unsolicited proposal

Among the 34 firms was Kystek Corp., which insisted it was given exclusive right by DOTC to implement a project similar to the AFCS.

Kystek said a letter of acceptance of its proposal was signed by a former director of the department.

But DOTC denied the firm’s claim. “Contrary to recent reports, the DOTC never approved Kystek’s unsolicited proposal. Acceptance of an unsolicited proposal requires no less than the Secretary’s authorization.”

“The fact that Kystek purchased Invitation Documents shows that it is fully aware that its unsolicited proposal was never accepted by the government, and that it is interested to bid for the AFCS Project,” it added.

Kystek Vice President Dong-ho Yu said in a statement the company’s proposal for a Unified Ticketing and Clearing System (UTCS) for the LRT and MRT has been with DOTC since Nov. 21, 2011.

Kystek, a Philippine-based corp. that is 40% owned by a Korean group, said DOTC merely adopted its unsolicited proposal, including its feasibility studies, in the AFCS bidding.

It warned the DOTC would violate Republic Act 6957 or the Build Operate Transfer (BOT) law as amended by RA 7718 if it pushed through with the bidding process.

Under the BOT law, any unsolicited proposal must be subjected to a Swiss Challenge, where the original proponent (the one who submitted the proposal) would be allowed to match the bids that would be submitted by other interested firms.

Bidding

Prospective bidders will submit their qualification documents for evaluation by DOTC and the Light Rail Transit Authority on Friday.

Only proponents that meet the eligibility requirements will be allowed to participate in the actual bidding, scheduled for the third quarter of 2013.

The AFCS project will decommission the old magnetic-based ticketing system and replace it with “contactless” smart card technology. 

The project will also involve the introduction of a centralized back office that will perform the apportionment of revenues. The private sector will operate and maintain the fare collection system. – Rappler.com

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