Concession signed for Manila ticketing system PPP

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Concession signed for Manila ticketing system PPP

The Philippine Department of Transportation and Communications (DOTC) and the AF Consortium, composed of Ayala Corporation and Metro Pacific Investments Corporation, have signed the concession agreement for the Automatic Fare Collection System (AFCS) project.

AF offered to pay the government P1,088,103,900 (US$24.6 million). SM group, which bid for P1,088,000,000, filed its second motion asking DOTC to reconsider the award of the project. SM claimed its bid was better because it offered to pay the government the full amount upfront and it also alleged that AF Consortium's bid was conditional. The company's president said in a statement that AF's bid included the following:

"Under the terms of the AF Consortium bid, 72% of the total amount will only be paid to government in 2024 or 2025 and only if the conditional [passenger] volume is met. Otherwise, the government will not be able to collect anything at all."

Michael Arthur Sagcal, DOTC spokesperson, stated:

The winning bid provided a schedule of the different options on how the transaction fee will be paid example x amount for 300 million to 350 million passengers, y amount for 350 million to 400 million. I guess SM chose a different structure. In any case, AF's structure met our requirements.

At the signature ceremony, AF Consortium gave assurances that the project would be completed within the September 2015 deadline set by the DOTC.

The estimated investment for the project is US$39 million.

The Automatic Fare Collection System (AFCS), a tap-and-go ticketing scheme for the Light Rail Transit (LRT) and Metro Rail Transit (MRT) rail systems, is envisioned to improve passenger comfort and convenience by cutting queuing time and allowing seamless transfers from one rail line to another.

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