DOTC eyes rebidding of LRT-1 with revised terms
MANILA, Philippines - The Department of Transportation and Communications (DOTC) is looking at possibly rebidding the Light Rail Transit Line 1 (LRT-1) Cavite extension project but with revised terms to address the concerns of the bidders who withdrew their participation.
"The bids and awards committee is looking at the possibility of extending the bidding process and reevaluating the existing terms to further address the commercial issues raised by the pre-qualified bidders," Transportation Secretary Jun Abaya said in a statement.
This after only one group, the Light Rail Manila Consortium, submitted a technical proposal, which was non-compliant, for the project. Three other pre-qualified groups, MTD-Samsung Group, San Miguel Infrastructure Resources Inc., and DMCI Holdings Inc., did not participate in yesterday's auction.
Abaya said the committee will decide in a week if it will declare a failed bidding and conduct a re-bidding, and if it will revise the terms of the project.
“The evaluation would be completed in a week, after which next steps in the bidding process will be announced. The goal of the evaluation and the next steps is to ensure that the construction of the LRT1 Cavite extension will proceed in the second half of 2014, as scheduled,” he said.
The potential bidders had cited the low fares and the responsibility for paying real property taxes as reasons why the project is risky and unprofitable.
San Miguel president Ramon S. Ang said SMC Infra Resources Inc. decided to withdraw from the bidding because the project was not viable.
"In as much as we previously expressed great interest, we have determined that the risk profile of the project, based on the existing terms, is such that it will not be economically viable to the company," he said.
Th project is the DOTC's first public-private partnership (PPP) project. It will extend the current LRT-1 line from its present end-station in Baclaran to parts of Parañaque, Las Piñas, and Cavite.
Of the project's P60 billion cost, the government is spending P30 billion for the acquisition of 39 new light rail vehicles for the project through an official development assistance loan from Japan International Cooperation Agency (JICA). The civil works cost, estimated at P30 billion, is being auctioned to the private sector.