The Department of Transportation and Communications, has announced that four companies have expressed interest in bidding for Manila LTR Line 1 extension through a PPP project. Globalvia, the Spanish concessions arm of FCC and Bankia, has been one of the firms that has bought so far tender documents for the project.
Other companies interested so far in the project are:
An earlier bidding process for the project failed after most firms that were prequalified backed out due to viability concerns, which the Philippine Department of Transport and Communications (DOTC) has addressed in this second round.
The Department of Transportation and Communications gave interested bidders until April 28 to submit their proposed bids for the project. The DOTC will be speeding up a single-stage process allowing interested groups to send in qualification documents and technical and financial proposals to accelerate the bidding process by at least two months.
The new terms state that the government will absorb the payment of real property taxes, ensure the integrity of the facility's structure for two years, permit a 5% fare increase when the project finishes, and allow negative bid submissions. Those changes are expected to increase interest from private investors.
The cost of the project increased from P60 billion (US$1.35 billion) to P64.9 billion (US$1.47 billion) because the project also includes the remedial and rehabilitative works for existing systems and trains, compliance with laws and regulations, equipment installations, and contingency costs.
The LRT-1 expansion project includes the operation and maintenance of the entire LRT-1 system for a 32-year concession period, and the construction of an 11.7-kilometer southward extension from the Baclaran station to Bacoor, Cavite.