Saturday, September 13, 2014

DOTC awards P65-B LRT 1 extension project to LRMC

THE Department of Transportation and Communications (DOTC) awarded late Friday its largest key infrastructure deal to date following the conclusion of reviews on the grant’s legal implication.
Transportation Secretary Joseph Emilio A. Abaya said the Office of the Solicitor General (OSG) approved the awarding of the P64.9-billion Light Rail Transit (LRT) Line 1 Cavite Extension deal to the Light Rail Manila Consortium (LRMC), composed of Metro Pacific Investments Corp. (MPIC) and Ayala Corp., as lawyers saw no legal impediment to the award of the project.
State lawyers were asked for their legal opinion, as a component of the project was subject to a stay order issued by the Supreme Court (SC) early on.
The High Tribunal issued a temporary restraining order (TRO) against the agency’s move to relocate the P1.4-billion Common Station Project, the design of which is a component of the P65-billion railway-expansion deal.
“The TRO is in the transfer of the station. There is no restraint in the award of LRT 1 Cavite Extension. In our notice of award, it is conditioned on the fact that the common station issue is subject to the eventual Supreme Court decision,” Abaya said, citing the legal opinion of the OSG.
At the heart of this legal tussle is the claim of SM Prime Holdings Inc. on the location of the common hub that will link the three overhead train systems in Metro Manila.
Maintaining that he does not want anymore delays on the construction of the much-needed infrastructure, Abaya said that SM Prime has the right to contest the decision.
“The SM Group can contest anything, but they have said they don’t want to obstruct the award and construction of LRT 1 South Extension Project. They are merely interested in the location of the common station. The SC decision, of course, will bind us all,” he pointed out.
He added that the LRMC may start with the P65-billion project even without the decision of the High Court on the common station.
“The building of the common station is the obligation of the government. Thus, an early SC decision will be appreciated by our people,” the Cabinet official said.
The government and the parties involved will sign the concession agreement next month, pending the completion of post-award requirements.
“LRMC now has 20 days to comply with post-award requirements, including the payment of 10 percent of its P9.35-billion premium bid amount, after which the concession agreement may be executed by the parties,” Abaya explained.
The consortium may begin construction works and take over LRT 1 operations within a maximum of one 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.
“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,” Abaya said.
Officials from the consortium were not available for comment.
The multibillion-peso railway-expansion project aims to extend the existing Line 1 by 11.7 kilometers, adding eight new stations, where approximately 10.5 km of the extension will be elevated and 1.2 km will be at-grade.
The winning bidder will also serve as the operator and the maintenance provider of the railway line.
It took the government two years before successfully auctioning the deal off.
Aside from the P65-billion Cavite Extension deal, the MPIC-Ayala tandem also won the P1.72-billion Automated Fare Collection System Project, which will effectively integrate the ticketing system in all three train systems in the Philippines.
Including the two aforesaid projects, the government has awarded eight public-private partnership (PPP) contracts since the flagship infrastructure program was launched in late-2010, involving:
• P1.96-billion Daang Hari-South Luzon Expressway project bagged by Ayala Corp. in 2011;
• P16.42-billion first phase of the PPP School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as well as the BF Corp.-Riverbanks Development Corp. Consortium;
• P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013; and
• P3.86-billion PSIP Phase II contract, partially awarded last year to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium;
• P5.69-billion Modernization of the Philippine Orthopedic Center project that went to the Megawide-World Citi Inc. consortium also last year.
• P17.5-billion Mactan Cebu International Airport New Passenger Terminal project bagged in April by Megawide Construction Corp. and GMR Infrastructures Ltd.
The government aims to sign at least 15 contracts by the time President Aquino steps down from office in 2016.

source:  Business Mirror

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