DOTC to award LRT 1 Cavite extension project this week

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The agency is set to award the PPP project to sole bidder: the consortium of MPIC and Ayala groups

The Department of Transportation and Communications is set to award the P65-billion LRT 1 Cavite extension project to the Light Rail Manila Consortium. Photo from the PPP Center

MANILA, Philippines – The Department of Transportation and Communications (DOTC) will award within the week the P65-billion ($1.5 billion*) Light Rail Transit (LRT) 1 Cavite extension project to the tandem of Metro Pacific Investments Corporation (MPIC) and conglomerate Ayala Corporation.

The consortium of the groups, Light Rail Manila, was the lone bidder 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%.

DOTC Secretary Joseph Emilio Abaya said the agency would issue the Notice of Award to the consortium once it receives the board resolution from the Light Rail Transit Authority (LRTA) approving the project.

“Once we receive the LRTA Board resolution signed by the principals, we will then issue the Notice of Award. We hope to do it early or middle this week,” Abaya stressed.

The LRTA board approved the project on July 25 was based on the recommendation made by the DOTC Special Bids and Awards Committee on July 21, LRTA spokesperson Hernando Cabrera said.

The National Economic and Development Authority board, chaired by President Benigno Aquino III, approved on June 19 the offer made by Light Rail Manila.

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.

More than half of the project cost of the PPP will cover the construction of the tracks, the stations, and all its attendant facilities, while P30 billion ($692.46 million) will be used to purchase the trains to be funded by the government through official development assistance. –



 *($1 = P43.32)

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