DOTC to Expedite Bidding for Improved P65-B LRT-1 Cavite Extension Project

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Contrary to recent reports of delays in the re-tender of the country’s largest railway Public-Private Partnership (PPP) project, the Department of Transportation and Communications (DOTC) is expediting the bidding process for the improved P 65 Billion Light Rail Transit Line 1 Cavite Extension (LRT-1 Cavex) Project.

“The only delay was in the schedule of the NEDA Board meeting. Otherwise, we are still following the same 4- to 6-month timeline from obtaining approval to set the bid submission deadline,” said DOTC Spokesperson Michael Arthur Sagcal.

“In fact, we are expediting it. We will adopt the single-stage bidding process, and we will set the bid submission date in the earlier part of Q2 2014,” Sagcal added.

The single-stage bidding process means that interested groups will submit their qualification documents simultaneously with their technical and financial proposals, instead of having a separate pre-qualification phase. This will do away with the two-stage process, effectively cutting the entire period by around two (2) months.

After the original bid for this project failed last August, the transport agency improved certain economic terms in the concession, which required NEDA Board approval.

These involve government absorbing the obligation to pay real property taxes (RPT), ensuring the integrity of the facility’s structure for a two (2)-year period, permitting a five-percent (5%) fare increase upon completion of the project, and allowing the submission of negative bids.

The said improvements were approved last November 21.

The LRT-1 Cavex project retains the major components of the original scope of works, namely the operation and maintenance of the entire LRT-1 system for a 32-year concession period, and the construction of an 11.7-kilometer southward extension from the Baclaran station to Bacoor, Cavite.

It entails the construction of eight (8) new stations, plus two (2) future stations, in Parañaque City, Las Piñas City, and the province of Cavite, opening up more convenient, efficient, and faster access to education and employment opportunities in Metro Manila to a total of around four (4) million people who live in the area.

Pursuant to the Build-Operate-and Transfer (BOT) Law, the DOTC will publish its invitation to bid for the improved LRT-1 Cavex project for three (3) consecutive weeks during this month of December, beginning tomorrow.

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