Subsidy for LRT 1 Cavite extension cut by P1B

Rappler.com

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Subsidy for LRT 1 Cavite extension cut by P1B
The auction for the railway extension project is scheduled in May

MANILA, Philippines – The Department of Transportation and Communications (DOTC) slashed the P6-billion subsidy that will be extended to the winning bidder of the P65-billion Light Rail Transit Line 1 (LRT 1) Cavite extension project.

“The subsidy amount (inclusive of all taxes) and the amount of the VAT thereon shall be subject to the cap that was disclosed by the SBAC (special bids and awards committee) through General Bid Bulletin No. 06-2014 issued on 10 February 2014,” according to DOTC’s General Bid bulletin 12-2014.

The subsidy cap was reduced to P5 billion from P6 billion.

The lowering of the cap, said the DOTC, was “consistent with the deletion of the obligation of the concessionaire to fund the relocation under… the draft Concession Agreement up to the amount of P900,000,000.” (READ: LRT 1 Cavite extension project now costs P65B)

DOTC undersecretary for legal affairs Jose Perpetuo Lotilla said a revised Instruction to Bidders for the Public-Private Partnership project would be released following the bid bulletin. (READ: 6 firms vie for P65-B LRT 1 Cavite extension project)

The LRT 1 Cavite extension project was scheduled for a second auction on April 28, but this was moved to May 28.

Last year, the bidding for project was deemed a failure after only one of 4 pre-qualified groups submitted an offer. Other companies backed out because of concerns over the project’s viability. – Rappler.com

(P1 = US$44.59)

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