Philippines DOTC recommends LRT award to single bidder

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Philippines DOTC recommends LRT award to single bidder

The Philippine Bids and Awards Committee (BAC) of the Department of Transportation and Communications (DOTC) has recommended the awarding of the Manila LTR Line 1 extension PPP project to the Light Rail Manila Consortium.

The agency's BAC met Monday, July 21, and approved the bid submitted by Light Rail Manila, DOTC spokesperson Michael Arthur Sagcal said. He said:

"The BAC met and resolved to recommend the award of the project to Light Rail Manila Consortium."

The Light Rail Transit Authority (LRTA) Board has yet to award the project. LRTA spokesperson Atty. Hernando Cabrera said the LRTA Board is scheduled to meet again on Friday because it didn't have time to discuss the item on Tuesday.

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 consortium is owned by Metro Pacific Investments Corporation (55%), Ayala Corporation (35%) and  Macquarie Group Ltd (10%).

An earlier bidding process for the project failed after most firms that were pre-qualified 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.

Additionally, 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 extension project will also 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.

The LRT-1 expansion project includes the operation and maintenance of the entire LRT-1 system for a 35 year concession period.

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