DOTC Awards LRT-1 Cavex PPP; Starts Bid for LRT-2 O&M

Wazzup Pilipinas!

The Department of Transportation and Communications (DOTC) awarded its biggest Public-Private Partnership (PPP) project so far, the P 65-Billion Light Rail Transit Line 1 (LRT-1) Cavite Extension (Cavex) Project, to the Light Rail Manila Consortium (LRMC) yesterday, 12 September 2014.

“We are pleased to push the project forward for the sake of the riding public, especially those who live in the southern part of Metro Manila such as Pasay, Parañaque, Las Piñas, and Muntinlupa, as well as Cavite. This project will level the playing field for them, giving them convenient access to employment and educational opportunities in the metropolis,” said DOTC Secretary Jun Abaya.

LRMC now has twenty (20) days to comply with post-award requirements, including the payment of 10% of its P 9.35-Billion premium bid amount, after which the Concession Agreement may be executed by the parties.

The award is subject to the final decision of the Supreme Court (SC) with respect to the Common Station project, which will connect LRT-1, Metro Rail Transit Line 3 (MRT-3) and MRT-7 at the EDSA-North Avenue area.

The LRT-1 Cavex bid included a component for the design of the Common Station in front of Trinoma, the original site for the infrastructure project. SM Prime Holdings, Inc. is contesting this location and has obtained a Temporary Restraining Order (TRO) from the SC, in its bid to move the Common Station next to its mall, SM North EDSA, despite the National Economic Development Authority’s (NEDA) approval of the Trinoma site in 2013. Construction of the Common Station will be procured separately once the case is resolved.

LRMC may begin construction works and take over LRT-1 operations within a maximum of one (1) year from the signing of the Concession Agreement, or by October 2015. The project should be fully operational within 54 months, or by May 2019.


Bidding for LRT-2 O&M PPP Begins

Meanwhile, the DOTC today launched the tender for another PPP project with the publication of its invitation to pre-qualify and bid for the LRT-2 Operations and Maintenance (O&M) contract, pursuant to the transport agency’s thrust to modernize the country’s railways and to provide the public with convenient, safe, affordable and reliable mass transport systems.

The 13.8-kilometer long LRT-2 traverses the cities of Manila, San Juan, Quezon City, Marikina, and Pasig, and caters to around 200,000 passengers daily.

The winning bidder will take over the O&M of all 11 stations of the existing line, as well as the 4.19-kilometer LRT-2 Masinag Extension, the construction of which is scheduled to begin in January 2015. The concession period will be between 10 to 15 years.

The deadline for submission of pre-qualification documents is on 20 November 2014, while bidding for the project is scheduled for the second quarter of 2015.

“This will vastly improve LRT-2’s services, by tapping private sector efficiency and customer service orientation, similar to the LRT-1 project. Meanwhile, government will retain its role as regulator to ensure that the interests of the riding public are protected,” Abaya remarked.

About "WazzupPilipinas.com"

WazzupPilipinas.com is the fastest growing and most awarded blog and social media community that has transcended beyond online media. It has successfully collaborated with all forms of media namely print, radio and television making it the most diverse multimedia organization. The numerous collaborations with hundreds of brands and organizations as online media partner and brand ambassador makes WazzupPilipinas.com a truly successful advocate of everything about the Philippines, and even more since its support extends further to even international organizations including startups and SMEs that have made our country their second home.