Rappler, 7 September 2013
SUBSIDY. The government may shoulder P2-billion-worth of real property taxes in the LRT-1 Cavite extension project. Photo courtesy of the PPP Center
MANILA, Philippines – After several delays and the failed bidding for the P60 billion LRT-1 Cavite extension project, the government is mulling a P2 billion subsidy to get the rail project going.
This is among the changes in the project’s terms of reference that the Department of Transportation and Communications (DOTC) is seeking approval for, according to Public-Private Partnership (PPP) Executive Director Cosette Canilao.
Canilao said the DOTCâ€™s Special Bids and Awards Committee is working on getting the nod of the National Economic and Development Authority (NEDA) Board for government to subsidize the real property taxes (RPT) to be included in the new concession agreement.
â€śWe need the approval of the NEDA Board, but we’re still taking away the variables. RPTs will be absorbed by government, â€ś she added.
Canilao has earlier said RPTs amount to almost P2 billion.
She explained that payment of the real property taxes, which will be imposed by the local government units, was the deal breaker when 4 of the pre-qualified bidders withdrew.
â€śFor LRT-1, the RPT really became an issue,â€ť she explained.
Three out 4 firms withdrew their participationÂ shortly before the opening of the technical proposals last August 15.
The lone bidder, Light Rail Manila ConsortiumÂ of Pangilinan-led Metro Pacific Investments Corp., however, failed to meet the requirements of the bidding, which resulted in aÂ failure of bidding.
Canilao said rebidding for the railway project will be conducted before year-end.
The LRT-1 Cavite Extension project is among the biggest PPP projects under the Aquino administration.
The project will extend the existing 20.7-kilometer LRT-1 by 11.7 km, with a new south endpoint in Bacoor, Cavite.
The new line is expected to increase the ridership of LRT-1 from 500,000 to 700,000 passengers per day, and provide faster and more convenient mode of transportation to residents of Cavite, Las PiĂ±as and ParaĂ±aque.Â â€“ Rappler.com
25 October 2012, Philippine Information Agency (PIA)
The bidding for the P60-billion LRT 1 Cavite Extension Project will push through in January 2013, as originally scheduled.
In a statement, the DOTC said that during the prequalification conference held recently in Mandaluyong City six companies submitted their prequalification documents, but two were rejected for arriving late at the event.
â€śBeing transparent is the rule of the game. We are here to ensure a clean, fair, and open bidding process for the DOTCâ€™s largest single transport infrastructure program,â€ť Transportation Secretary Joseph Emilio Aguinaldo Abaya said in a statement.
The four companies who successfully filed their bid documents were Light Rail Manila Consortium (MPIC-Ayala), San Miguel Infra Resources, Inc., DMCI and MTD-Samsung.
DOTC had to extend the deadline for the submission of prequalification documents three times to encourage more participants. It wants to ensure that the companies or even the consortia to be formed have the required financial, technical and management capability to carry out the project.
â€śThe change in the prequalification dates did not delay the whole process since the submission date of the financial bids will happen sometime in January next year. In essence, the project has not been delayed by this encouragement of a few more bidders,â€ť Abaya added.
The existing Line 1, with endpoints in Roosevelt in the North and Baclaran in the South, services about 500,000 commuters daily.
The Cavite Extension will increase the span of Line 1 from 20.7 kilometers to 32.4 kilometers and will have a new south endpoint in Niyog, Bacoor, Cavite, and possibly extended up to Dasmarinas City and Imus.
Eight passenger stations with a provision for two additional stations, one satellite depot and three intermodal facilities is part of the project. Approximately 10.5 kms of the Cavite Extension System will be elevated and 1.2 kms will be at grade.
The passenger stations will tentatively be constructed in the following areas: Redemptorist Station on Redemptorist Road near Roxas Boulevard; MIA Station near the Coastal Mall along Roxas Boulevard; Asia World Station near Asia World Development (Roxas Boulevard); Ninoy Aquino Station, east side of Ninoy Aquino Bridge over the Paranaque River; Dr. Santos Station, south of Dr. Santos Road; Las Pinas Station, east of Quirino Avenue and south of Las Pinas River; Zapote Station, north of the Alabang-Zapote flyover; Niyog Station, south of the Niyog Road bypass and Aguinaldo Highway intersection.
Two provisional stations in Manuyo Uno in Las Pinas City and Talaba in Cavite are also being considered.
Once complete, the new line will increase ridership of LRT1 from 500,000 to 700,000 passengers per day. It will provide faster and more convenient alternative to residents of Cavite, Las Pinas and Paranaque.
The construction will be divided into two phases: from Baclaran to Dr. Santos Avenue (Phase 1A) and from Dr. Santos Avenue to Niyog Station (Phase 1B).
Once the bidding process is complete by January next year, DOTC is looking at issuing a notice of award to the winning bidder by the second quarter of 2013. (DOTC/RJB/JCP/PIA NCR)
23 October 2012, Philippine Daily Inquirer
Four groupsâ€”three local and one foreignâ€”are vying for the contract to extend the Light Rail Transit (LRT) line 1 from ParaĂ±aque to Cavite, currently the largest infrastructure project being bid out by the Aquino administration.
Conglomerate San Miguel Corp., a consortium led by the group of Manuel V. Pangilinan and the Ayala family, and Consunji-led DMCI Holdings were among the five local groups that submitted prequalifying documents for a significant portion of the P60-billion project.
Two other local firmsâ€”EcoRail of the Romeros and Light Rail Transit Systemsâ€”submitted the required documents but were later disqualified as they failed to meet the 2 p.m. deadline on Monday.
Pangilinanâ€™s Metro Pacific Investments Corp. and Ayala Corp. submitted their documents as Light Rail Manila Consortium. The San Miguel group was represented by subsidiary SMC Infra Resources.
MTD Samsung, a consortium between Malaysiaâ€™s MTD group and South Koreaâ€™s Samsung, was the sole foreign bidder.
A total of 33 companies bought prequalification documents for the project but only six actually submitted the required documents, the Department of Transportation and Communications said.
The prequalification documents went through initial screening by the DOTCâ€™s special bids and awards committee on Monday. A more detailed assessment of the documents will be done in the coming weeks, officials said.
â€śThe evaluation of documents will be done under circumstances that will not create any doubts on the process,â€ť Transportation Undersecretary Jose Perpetuo â€śJujuâ€ť Lotilla said Monday.
â€śThe DOTC does not believe that mysteries are part of the government,â€ť he said.
The six companies seek to be qualified, based on their technical and financial capabilities, to bid for the private-sector portion of the LRT Cavite extension project. The final list of qualified bidders will be released on a later date.
The project involves the construction of 12 kilometers of tracks and the installation of electromechanical and signaling systems. This portion is worth P30 billion and will be funded entirely by the private sector.
The winning bidder will also be responsible for the operation of the entire LRT line 1 once the extension is completed.
The other half of the projectâ€”the acquisition of new train carsâ€”will be handled by the government and will cost another P30 billion. This will be financed through an overseas development assistance (ODA) loan.
The three-decade-old LRT line 1 runs from Baclaran, ParaĂ±aque, to Roosevelt, Quezon City, along Taft and Rizal Avenues and Epifanio de los Santos Avenue.
23 October 2012, ABS-CBN News
Four companies, including San Miguel Corp. and a consortium led by Metro Pacific Investments Corp. and Ayala Corp., on Monday submitted documents to qualify as bidders for the P60-billion Light Rail Transit line 1 Cavite extension project.
The LRT project will extend the existing 20.7-kilometer Line 1 system, which currently runs from Roosevelt Avenue in Quezon City to Baclaran, by an additional 11.7 km to Bacoor, Cavite.
The Light Rail Manila Consortium of MPIC and Ayala groups, San Miguel’s SMC Infra Resources Inc., DMCI Holdings, Inc. and MTDC-Samsung Consortium submitted the qualification requirements, which will be evaluated by the Department of Transportation and Communications (DOTC) bids and awards committee.
However, two companies, Ecorail and Luzon Rail Transit System, were disqualified from the bidding since they submitted the documents after the 2 p.m. deadline.
“There are very clear provisions in the invitation to prequalify. It’s an all-or-nothing proposition. We decided not to accept the two bids of Ecorail and Luzon Rail for failure to submit their requirements on time,” said DOTC Undersecretary Jose Perpetuo Lotilla.
The DOTC bids and awards committee opened the pre-qualification documents submitted by the firms to check whether they have complied with the requirements, and were later resealed. The committee will evaluate the documents and finish within 2 weeks.
The Light Rail Manila Consortium is composed of MPIC, Ayala Corp., AC Infra Holdings Corp., Macquarie Infra Holdings (Phils) Pte Ltd., Metro Pacific Light Rail Corp. and RATP Devt. S.A.
MTDC-Samsung is led by Malaysia’s MTD Capital Bhd of Malaysia and South Korea’s Samsung. Other members include Union Equities Inc., DM Wenceslao & Associates Inc., Primewater Infra Corp.
10 October 2012, Business Mirror
by Lenie Lectura
A transportation official said on Wednesday that interested bidders of the P60-billion Light Rail Transit (LRT) Line 1 Cavite extension project are expected to submit their bids by March next year.
â€śWe have received a number of interested bidders and we expect the bid submission by March 2013, and to start construction soon after that,â€ť said Undersecretary for Planning Rene Limcauco during the 38th Philippine Business Conference.
The agency maintains that it is on track in meeting the original timetable despite delays in the deadline for the submission of prequalification documents. Originally set on August 22, the Department of Transportation and Communications (DOTC) has moved the deadline twice to September 28, then again on October 22.
â€śThe fact that the pre-qualification has been deferred does not mean to say that the actual bidding will be deferred,â€ť said Transportation Undersecretary Jose Perpetuo Lotilla.
Based on the preliminary information memorandum of the LRT Line 1 Cavite extension project released by the agency in June, the issuance of the notice of award to the winning bidder was supposed to take place March of this year, while actual construction was slated in October 2013.
Former Transportation Secretary Mar Roxas had said construction of the LRT Cavite extension project is expected to be half completed â€śby late 2014 and the other half by late 2015.â€ť
The firms that already purchased pre-qualification documents are San Miguel Infra, Macquarie Group, Mitsubishi Corp., D.M. Consultant Inc., Hanjin Heavy Industries & Construction Co. Ltd., Sumitomo Corp., Leighton Contractors, SyCip Salazar Hernandez & Gatmaitan, FSG Capital Inc., EFC Enterprises, FF Cruz & Co. Inc., Marubeni Corp., BPI Capital Corp., ING Bank, Jorgman Planning & Development Corp., RATP Development, Benchtel Overseas Corp., Comm Builders & Technical Philippines Corp., Lenvoisa Construction Inc., APT Global Inc., Makati Development Corp., Tranzen Group, SERCO Group, Cathay Energy Service Corp. and Systra Group.
This railway project will extend the existing 20.7-kilometer (km) LRT Line 1 system, which runs from Roosevelt Avenue in Quezon City to Baclaran in Paranaque, by an additional 11.7 km southward to Bacoor, Cavite.
Once completed, the new line will increase ridership of LRT 1 from 500,000 to 700,000 passengers per day thus provide faster and will serve as a more convenient alternative to residents of Cavite, Las PiĂ±as and ParaĂ±aque.
The project cost will be equally split between the private sector and the government, which will spend for the purchase of up to 39 new car train sets, construction of the satellite depot, among others.
11 October 2012, The Philippine Star
by Lawrence Agacaoili
The Department of Transportation and Communications (DOTC) moved by two months the submission of the bids for the P60 billion light rail transit (LRT) 1 extension project to Bacoor in Cavite from Baclaran in Pasay City.
In a speech during the 38th Philippine Business Conference at the Manila Hotel yesterday, DOTC undersecretary Rene Limcaoco said the government has received a number of interested bidders for the project.
â€śWe have received a number of interested bidders and it is now under prequalification,â€ť Limcaoco stressed.
He pointed out that the schedule for the submission of bids is in March or two months delayed than the January schedule announced earlier by Transportation undersecretary Jose Perpetuo Lotilla.
â€śWe expect bid submission by March 2013,â€ť Limcaoco stressed.
He stressed that the deadline for the submission of bids is originally scheduled in March but the bid bulletin showed that the submission of bids is either on January or February and the notice of award is scheduled in March.
The Cavite Extension project would increase the span of Line 1 from 20.7 kilometers to 32.4 kilometers with a new south endpoint in Niog, Bacoor, Cavite instead of Baclaran. The extension project includes eight stations (with provision for two future stations), 10.5 kilometers of viaduct, support beams, and 3 intermodal facilities.
Approximately 10.5 kilometers of the Cavite Extension System would be elevated and 1.2 kilometers would be at grade level serving nearly four million residents of ParaĂ±aque, Las PiĂ±as, and the Province of Cavite.
Limcaoco said the government has set aside P30 billion to acquire up to 39 new Light Rail Vehicles for this project that would be financed through an official development assistance (ODA) scheme of the Japanese government.
He added that the civil works including the construction of the tracks, the stations and all its attendant facilities, as well as operation and maintenance worth about P30 billion would be auctioned to interested investors.
Bidders were given more time to finalize their pre qualification documents as the deadline was moved anew to Oct. 22 instead of Sept. 28. This was the second extension given by the government to interested parties as the original deadline was last Aug. 22.
Conglomerates led by the tandem of Metro Pacific Investment Corp. (MPIC) and Ayala Corp, and SMC Infra Resources Inc. are among the interested bidders for the civil works of the project worth P30 billion that would extend the LRT 1 from Baclaran all the way to Bacoor in Cavite.
Aside from the conglomerates, also present during the investorsâ€™ briefing and pre-qualification conference last July 10 were Ayala-controlled Makati Development Corp, FF Cruz, DM Consunji Inc. as well as Japanese-owned Marubeni, Sumitomo, Mitsubishi, Itochu as well as French transportation contractors RATP Dev and Systra Group as well as Ecorail and Leighton Contractors.
Also interested were Hanjin Heavy Industries & Construction Co. Ltd., SyCip Salazar Hernandez & Gatmaitan, FSG Capital Inc., EFC Enterprises, Jorgman Planning & Development Corp., RATP Development, Bechtel Overseas Corp., SERCO Group, Comm Builders & Technical Philippines Corp., Lenvoisa Construction Inc., APT Global Inc., Tranzen Group, and Cathay Energy Service Corp.,
Banks present during the conference were Ayala-controlled Bank of the Philippine Islands (BPI), BDO Universal Bank of retail magnate Henry Sy, PNB Capital of banking and beverage tycoon Lucio Tan, China Bank, and Dutch financial giant ING Bank, American-owned Citi, and the Macquarie Group of Companies.