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MANILA, Philippines – Ayala Corporation has revived its interest in the P65-billion Light Rail Transit 1 (LRT 1) Cavite extension project, partnering anew with Metro Pacific Investments Corporation (MPIC) for a rebidding in April.
The two groups’ Light Rail Manila Consortium is joining the April 28 bidding for the largest Public-Private Partnership (PPP) project, along with the 3 other groups prequalified in the first bidding in August, said Transportation department spokesman Michael Arthur Sagcal.
The 3 other prequalified groups include:
- DMCI Holdings Inc. – led by the Consunji group, which partnered with Marubeni Corporation and Sistema Tranporte Collectivo Metrorey.
- MTD Philippines Inc. – formed by foreign groups MTD Capital Bhd of Malaysia and South Korea-based Samsung
- SMC Infra Resources Inc. – is composed of San Miguel Corporation, GS Engineering and Construction Corporation and POSCO Engineering and Construction Company Ltd.
The LRT 1 extension is so far the biggest infrastructure deal under the Aquino administration’s PPP program. The program was launched in 2010 to support the administration’s drive for sustainable and inclusive economic growth.
Sagcal said aside from the original bidders, two new players are participating in the April bidding – Globalvia Inversiones of Spain and Megawide Construction Corporation.
“These developments signify confidence in the improved terms of the project. We look forward to more groups joining the bid,” he stressed.
The August bidding was declared a failure after 3 of the prequalified groups did not submit offers and lone bidder Light Rail Manila Consortium failed to comply with requirements.
Ayala dropped out of the consortium, leaving only MPIC to submit a bid.
The firms raised concerns about the project, including the issue of right of way and viability.
Following this, the Department of Transportation and Communications (DOTC) revised the project terms, making them more attractive for investors. The revisions were approved by the National Economic and Development Authority board in November.
No more issues
Sagcal said there were no issues raised in the second round of bidding.
During the pre-bid conference conducted on Monday, January 13, the DOTC reported that government already completed 92.34% of the right-of-way acquisition requirement for the Baclaran-Dr. Santos segment of the rail project, 69.2% for the Dr. Santos-Zapote segment, and 84.2% of the Zapote-Niog segment.
The agency also highlighted the impending tender for the construction of a common station to connect LRT 1, the Metro Rail Transit 3 (MRT 3), and the future MRT 7 in the EDSA-North Avenue area, as well as the Integrated Transport System (ITS) Southwest Terminal – another PPP project currently in the bidding stage. The ITS will be constructed on Coastal Road and will connect to the LRT 1 system.
“The common station and the ITS terminal will boost the project’s viability due to interconnectivity with other transport services, and more importantly, they will improve passenger experience in terms of convenience, efficiency, and comfort,” Sagcal noted.
The DOTC is hopeful that the LRT 1 extension project will follow the footsteps of its first two PPP bid last year: the Mactan-Cebu International Airport expansion roject, which yielded 7 bidders, resulting in a best offer of P14.4 billion; and the Automatic Fare Collection System, which attracted 5 bidders, resulting in a best offer of over P1.8 billion. – Rappler.com
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