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.