LRTA board OKs LRT 1 Cavite extension project award to MPIC, Ayala

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The LRT extension project will be formally awarded to the Light Rail Manila Consortium after the DOTC receives the LRTA Board Resolution on its approval

APPROVED. The Light Rail Transit Authority Board has approved the awarding of the P65-billion ($1.49 billion) LRT 1 Cavite extension project. Photo from the PPP Center

MANILA, Philippines – The Light Rail Transit Authority (LRTA) Board on Friday, July 25, has approved the recommendation to award the P65 billion ($1.5 billion*) LRT1 Cavite extension project to the tandem of infrastructure giant Metro Pacific Investments Corporation (MPIC) and conglomerate Ayala Corporation.

Light Rail Manila was the only one that submitted an offer for the public-private partnership (PPP) project. The consortium is led by MPIC, with a 55% stake, and Ayala, with 35%. Macquarie Infrastructure Holdings (Philippines) Pte Ltd holds the remaining 10%.

The Board’s approval to award the Public-Private Partnership (PPP) project to the Light Rail Manila Consortium was based on the recommendation made by the Department of Transportation and Communications (DOTC) Special Bids and Awards Committee (SBAC) on July 21, LRTA spokesperson Hernando Cabrera said.

“The LRTA Board approved the award as recommended by the SBAC,” Cabrera stressed.

Transportation Secretary Joseph Emilio Abaya chairs the LRTA Board, which has  8 ex-officio members.

The others are the heads of the Department of Public Works and Highways, Department of Budget and Management, Department of Finance, National Economic and Development Authority, Metropolitan Manila Development Authority, the LRTA, and the Land Transportation Franchising and Regulatory Board; and a representative from the private sector.

The LRTA Board authorized the DOTC chief to sign and issue the Notice of Award and Concession Agreement for the project, Cabrera said.

The DOTC is awaiting the LRTA Board resolution approving the award of the PPP project to the consortium, DOTC spokesman Michael Arthur Sagcal said in a text message.

“We will await the LRTA Board Resolution approving the SBAC’s recommendation to award the project. Once the resolution is received, Secretary Abaya may then issue the Notice of Award to the Light Rail Manila Consortium,” Sagcal said.

The NEDA Board chaired by President Benigno Aquino III approved on June 19 the offer made by the Light Rail Manila Consortium.

DOTC previously clarified that Transportation Undersecretary Rene Limcaoco did not favor the lone bidder for the public-private partnership (PPP) project, contrary to reports that he did so because his brother, Jose Teodoro, is working for the Ayala group.

The LRT extension project will lengthen Line 1 from 20.7 kilometers to 32.4 km, with a new south endpoint in Niog, Bacoor, Cavite. Approximately 10.5 km of the Cavite Extension System will be elevated and 1.2 km will be at grade level.

The extension will serve nearly 4 million residents of Parañaque, Las Piñas, and Cavite.



*($1 = P43.22)

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