NEDA Board approves Ayala-MPIC lone bid for LRT 1 Cavite extension

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The Board also gives go signal to 3 new, PPP infrastructure projects worth P139.77 billion

APPROVED. The P9.35-B bid of Light Rail Manila Consortium of Pangilinan-led Metro Pacific and Ayala and Macquarie groups was approved by NEDA on June 19. Photo from the PPP Center

MANILA, Philippines – The Light Rail Manila Consortium’s lone bid of P9.35 billion ($213.15 million) to undertake the Light Rail Transit Line 1 (LRT-1) Cavite extension project was approved Thursday, June 19 by the National Economic and Development Authority (NEDA) Board, chaired by President Benigno “Noynoy” Aquino III.

Light Rail Manila is led by Metro Pacific Investments Corporation (MPIC), with a 55% stake, and Ayala Corporation, with 35%. Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. holds the remaining 10%.

The Cavite extension project will increase the span of Line 1 from 20.7 km to 32.4 km with a new south endpoint in Niog, Bacoor, Cavite. Approximately 10.5 km of the Cavite Extension System would be elevated and 1.2 km would be at grade level. The extension would serve nearly 4 million residents of Parañaque, Las Piñas, and Cavite.

The construction of the tracks, the stations and all its attendant facilities, operation and maintenance worth about P30 billion ($683.91 million) comprised the contract bid out by government. The other half of the P65-billion project ($1.48 billion), covering the purchase of the coaches, will be funded by the government through official development assistance.

Approved in November 23, 2013, the LRT 1 Cavite extension project will provide focal points for transit-oriented development in the area and spur economic activity along its alignment such as the reclamation area facing Manila Bay, the NEDA Board said.

“The project will improve access to central Manila through providing off-street public transport connections to the rapidly growing southern portion of Metro Manila and the province of Cavite,” the Board said in a statement.

3 new PPP projects underway

The NEDA Board also approved 3 new infrastructure projects amounting to P139.77 billion ($31.94 billion).

The projects approved on June 19 included the Laguna Lakeshore Expressway-dike project; Laguindingan Airport development, operations, and maintenance project; and the new Bohol Airport development, operations, and maintenance project.

The Laguna Lakeshore Expressway-dike project, proposed by the Department of Public Works and Highways (DPWH), will provide a high-standard highway-dike that will facilitate traffic flow and mitigate flooding in western coastal communities along the Laguna Lake. It will serve the fast-growing urban areas in southern Metro Manila towards Laguna, Batangas, and Quezon, with intensive residential, commercial, and industrial land uses. The estimated implementation period is 37 years (7 years for design and construction and 30 years for operation and maintenance). Estimated total cost of the project is P122.81 billion ($28.06 billion).

The Laguindingan Airport development, operations, and maintenance project, proposed by the Department of Transportation and Communications (DOTC) will improve the airport’s capacity and upgrade its facilities and equipment to be of international standards through engaging a private entity under an appropriate PPPP arrangement. This will also replace the Cagayan de Oro (Lumbia) Airport, which served as large catchment area of Northern Mindanao. Estimated implementation schedule is 30 years concession period, including construction (2015-2044). Estimated total cost of the project is P14.62 billion ($334.21 million).

The new Bohol Airport development, operations, and maintenance project, also proposed by DOTC, will provide the structuring and implementation of a PPP arrangement for operations and maintenance. This includes the selection of an international or national consortium for the active marketing of the airport and develop direct international passenger traffic. The consortium will also be in charge of infusing necessary capital investments to upgrade facility capacity in terms of passengers or air traffic movement. Estimated implementation schedule is 35 years, with the construction period running from 2014 to 2016. Estimated total cost of the project is P2.34 billion ($53.47 million).

PPP for progress

According to NEDA Director-General and Socioeconomic Planning Secretary Arsenio Balisacan, all the PPP projects newly approved by the Board are aligned with the government’s overall strategy of increasing public infrastructure spending for the country to provide Filipinos with quality, adequate, and accessible infrastructure facilities and services.

“The approval of these new infrastructure projects is a timely contribution to the improvement of the country’s connectivity and efficiency, mitigating disaster-risks, supporting agricultural production, and pursuing energy and water security. These are all in line with strategies of the Updated Philippine Development Plan 2011-2016,” according to Economic Planning Secretary Arsenio M. Balisacan.

Broadly defined, PPP projects, according to the World Bank, refers to “arrangements, typically medium- to long-term, between the public and private sectors whereby some of the services that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/ or public services. PPPs typically do not include service contracts or turnkey construction contracts, which are categorized as public procurement projects, or the privatization of utilities where there is a limited ongoing role for the public sector.”

Apart from the newly approved projects, the NEDA Board also okayed the changes in funding source and cost of the Casecnan Multi-Purpose Irrigation and Power Project-Irrigation Component (CMIPP-IC) Phase II and the Umayam River Irrigation Project (URIP). –

DOTC to award P65B LRT 1 Cavite extension in 2 weeks

The department is still negotiating with MPIC-Ayala over the tandem’s P9.35B offer

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