The Philippine National Economic and Development Authority (NEDA) approved awarding the Manila LTR Line 1 extension PPP project to the consortium formed by Ayala Corp., Metro Pacific Investments Corp. and Macquarie Group Ltd last Thursday.
The team was the only bidder when it submitted its proposal in late May. The consortium offered to pay the government P9.35 billion (US$213.2 million) for the right to build, operate, and manage the project.
The project initially attracted interest from seven parties: San Miguel Corp, DMCI Holdings Inc, Megawide Construction Corp, the Spain's Globalvia, France's Ecorail Transport Services and a consortium comprising Malaysia's MTD Capital Bhd and South Korea's Samsung C&T Corp.
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) addressed in this second round.
The new terms stated that the government would 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.
Aditionally, 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 35 year concession period, and the construction of an 11.7-kilometer southward extension from its present end-station in Baclaran to parts of Parañaque, Las Piñas, and Cavite.
The NEDA has approved the bidding process for three new PPP projects.
The Laguna Lakeshore expressway and dike project which is the biggest PPP project approved so far. The total investment for this project is estimated at P123 billion (US$2.8 billion).
The approval gives the DPWH the go-signal to start the bidding process and possibly bid it out before year end.
President Aquino also approved the projects involving the development, operations, and maintenance of the Laguindingan airport and the new Bohol airport.