DOTC Optimistic for P 64.9-B LRT-1 Cavite Extension Bid: 4 Original Bidders Plus 2 New Groups Join Bid Activities

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Following a pre-bid conference and the first round of one-on-one meetings held earlier this week, the Department of Transportation and Communications (DOTC) is optimistic that the bidding for its biggest Public-Private Partnership (PPP) project will receive the same resounding response as its tenders in 2013.

All four (4) original bidders from last year’s failed bidding of the Light Rail Transit Line 1 (LRT-1) Cavite Extension (CAVEX) Project joined the bid activities and reaffirmed their continuing interest in the project. These are: DMCI Holdings, Inc., Light Rail Manila (LRM) Consortium, MTD Philippines, Inc., and SMC Infra Resources, Inc.

In addition, the Ayala group has rejoined Metro Pacific in the LRM Consortium. New players Globalvia Inversiones of Spain and Megawide Construction Corporation have also indicated interest in the tender.

“These developments signify confidence in the improved terms of the project. We look forward to more groups joining the bid,” said DOTC Spokesperson Michael Arthur Sagcal.

No major issues have been raised by the bidders, although updates since the original bid failed last August were sought. Among the more contentious issues in the previous tender had to do with the progress of government’s right-of-way (ROW) acquisition for the project.

During the pre-bid conference conducted on Monday, 13 January 2014, the transport agency reported that government has already completed 92.34% of the ROW acquisition requirement for the Baclaran-Dr. Santos segment; 69.2% of the Dr. Santos-Zapote segment; and 84.2% of the Zapote-Niog segment.

The DOTC also highlighted the impending tender for the construction of a Common Station to connect LRT-1, the Metro Rail Transit (MRT) Line 3 (MRT-3), and the future MRT-7 in the EDSA-North Avenue area, as well as the Integrated Transport System (ITS) Southwest Terminal – another PPP project currently in the bidding stage – which will be constructed on Coastal Road and will connect to the LRT-1 system.

“The Common Station and the ITS terminal will boost the Project’s viability due to interconnectivity with other transport services, and more importantly, they will improve passenger experience in terms of convenience, efficiency, and comfort,” added Sagcal.

The DOTC is hopeful that the LRT-1 Cavex Project will follow the footsteps of its first two (2) PPP tenders from last year: the Mactan-Cebu International Airport (MCIA) Project which yielded seven (7) bidders, resulting in a best offer of P14.4 Billion payment to government; and the Automatic Fare Collection System (AFCS) Project which netted five (5) bidders, resulting in a best offer of over P 1.8 Billion payment to government.

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