Conglomerates eye LRT2 project
MANILA, PHILIPPINES – Metro Pacific Investments Corporation (MPIC) and Ayala Corporation, via the Light Rail Manila Consortium which bagged the P65-billion ($1.45-billion*) Light Rail Transit 1 (LRT1) Cavite extension project, are now eyeing the LRT2 Build-Operate-Transfer (BOT) project.
The conglomerates, though, are up against other big-name firms GT Capital Holdings of Taipan George SK Ty, diversified San Miguel Corporation, and Marubeni Corporation of Japan.
Department of Transportation and Communications (DOTC) spokesperson Michael Arthur Sagcal said the companies, including the MPIC-Ayala tandem, have already purchased bid documents.
LRT2 is undergoing privatization for its operations and maintenance. DOTC has given bidders until November 20, 2014 to submit their pre-qualification documents.
The LRT2 project would be awarded through competitive bidding per the procurement rules and procedures under Republic Act No. 7718 or the BOT Law, the DOTC and the Light Rail Transit Authority (LRTA) said.
The winning bidder would operate and maintain the existing 13.8-kilometer (km) LRT2 from CM Recto Avenue in Avenida, Manila, to Santolan in Pasig City, covering 11 stations. The project includes the proposed P9.7-billion ($216.20-million) extension project covering an additional 4.19-km and two stations all the way to Masinag, Antipolo City.
The winner would also operate and maintain future LRT2 extensions. The extension is expected to further increase the current 200,000 daily passenger volume of the mass transit system.
The concession period for the LRT2 operation and maintenance would run between 10 and 15 years.
“This will vastly improve LRT2’s services by tapping private sector efficiency and customer service orientation, similar to the LRT1 project,” said Transportation Secretary Joseph Emilio Abaya.
The government would retain its role as regulator to ensure that the interests of the public are protected, Abaya said.
The LRTA also announced that it is has reduced the cost of the 3-year maintenance contract for LRT2 by P177 million ($3.95 million*).
The approved budget for the contract is now P1.15 billion ($25.65 million) from P1.33 billion ($29.66 million) as the scope of work on the brake operating unit and the gangway has been removed, while the janitorial services portion has been reduced. The bids deadline is moved to October 17.
MPIC-Ayala signs LRT1 concession agreement on Oct 2
Meanwhile, the Light Rail Manila Consortium of MPIC-Ayala will sign the concession agreement for the LRT1-Cavite extension project on Thursday, October 2.
The consortium offered a premium payment of P9.35 billion ($208.64 million) to undertake, to date, the largest PPP project awarded by the Aquino administration.
MPIC Light Rail Corporation has a 55%-stake, Ayala’s AC Infrastructure Holdings Corporation has 35%, while Macquaire Infrastructure Holdings (Philippines) Pte Ltd. has 10%
The LRT1 will be extended up to Niog in Bacoor, Cavite. – Rappler.com
*$1 = P44.81