Gov't to revise bid terms for LRT 1 Ext project
MANILA, Philippines - The government is looking at revisions in the terms of the proposed Light Rail Transit (LRT) Line 1 extension project.
Public Private Partnership (PPP) Center executive director Cosette Canilao said in a press conference yesterday they are securing approval from the National Economic and Development Authority (NEDA) Board for the revisions of the terms of the project.
“We need to get approval of the NEDA Board. We are looking at taking away the variability in the project such as RPTs (real property taxes). (We are) getting approval that RPTs will be absorbed by the government and then, that the DOTC (Department of Transportation and Communications) be allowed to accept negative bids, meaning subsidy,” she said.
The DOTC said earlier it plans to rebid the proposed P60 billion LRT 1 extension project after only one firm submitted a bid on Aug.15.
The project involves extending LRT 1, which currently runs from Roosevelt in Quezon City until Baclaran in Pasay City, up to Cavite.
Out of the four prequalified bidders, only the Light Rail Manila Consortium submitted a bid.
The consortium is led by First Pacific’s infrastructure conglomerate Metro Pacific Investments Corp. and Ayala Corp. (through AC Infrastructure Holdings Corp.) with a combined stake of 45 percent.
AC Infrastructure, however, did not to participate in the bidding.
Other bidders that were prequalified last November such as the MTD-Samsung Group, San Miguel Infrastructure Resources Inc., and DMCI Holdings Inc. withdrew their participation in the bidding process.
Among the concerns raised in the bidding were the low fares and having to shoulder the real property taxes as these were seen to be risky and unprofitable.
Canilao expressed optimism that the government would still be able to bid out the project within the year.
Apart from the LRT Line 1 extension project, she said the government also expects to bid out three other projects within the year such as the Mactan Cebu International Airport Passenger Terminal Building, the Automatic Fare Collection System and the Cavite-Laguna Expressway.