LRT 1 Cavite Extension awaits DoTC and LRTA approval

Light Rail Transit Authority (LRTA) Board’s approval of the awarding of the P65-billion Light Rail Transit (LRT) 1 Cavite Extension project to the lone bidder.

Lawyer Hernando Cabrera yesterday said a date has not yet been set for the LRTA Board meeting to discuss the awarding of the public-private partnership (PPP) project to the Ligh Rail Manila Consortium (LRMC) of Metro Pacific Investment Corp., Ayala Corp., and Macquire Infrastructure Holdings Philippines Pte. Ltd.

The LRTA Board consists of the chiefs of government agencies on Transportation and Communication, Budget and Management, Public Works and Highways, Finance, Metro Manila Development Authority, LTFRB, National Economic Development Authority, Light Rail Transit Authority, and a representative from the private sector.

“It’s difficult to have a quorum but the LRTA Board approval is a prerequisite for the awarding of the project,” he said.

Cabrera, who is also the LRTA Board corporate secretary, said a separate approval from Transportation Secretary Joseph Emilio Abaya is also necessary before the notice of award is issued.

“The project needs approval from both DoTC and LRTA Board. It doesn’t matter which of the two agencies gives its nod first,” he added.

To recall, only the LRMC was able to beat the deadline of submitting technical and financial proposals for the P64.9 billion project to extend the LRT 1 from Baclaran, Pasay City to Bacoor City in Cavite as well as to operate and maintain the entire rail system for 32 years.

The National Economic and Development Authority (NEDA) has approved the lone bidder’s offer to undertake the project and to remit P9,350,103,900 premium payment to the government. If awarded the project, the MPIC-led consortium said 20 percent of the premium payment will be paid upfront at the concession agreement signing and the rest will be spread over the life of the 32-year concession period.

The LRMC was also the lone bidder during the first auction of the project last year but offered a non-compliant bid, forcing the DoTC to declare a failure of bidding.

The LRT 1 Cavite Extension Project—original priced at P60 billion—is touted as the single most-expensive infrastructure project of the Aquino Administration to date. While private sector invests P30 billion for the civil works on the extension to Bacoor, the government will spend another P30 billion to procure 39 new train sets for the mass transit line, apart from acquiring and delivering the required right of way, constructing satellite depots and implementing the automatic fare collection system that will lead to a unified ticketing system for all rail lines.

The NEDA has approved an increase in the project cost from P60-billion to P64.9 billion due to the addition of several components to the project’s terms. The new components include “some remedial and rehabilitation works for the existing system such as repairing the carriage viaduct, rehabilitating existing trains especially their roofing, as well as making the LRT-1 system compliant with laws and regulations,” as well as “installation of equipment which will be part of the common ticketing system called the Automatic Fare Collection System.

Other components include contingency costs, on account of the interface risk with related projects such as the Automated Fare Collection System, the construction of the Common Station which will link LRT-1 with Metro Rail Transit (MRT) Lines 3 and 7 in the EDSA-North Avenue area, and the LRT-1 Cavex components procured under the project’s Official Development Assistance (ODA) portion.