Philippine Daily Inquirer, 06 September 2013
The Philippines remains keen on bidding out within the year at least four more public private partnership (PPP) deals valued at about P115 billionâall of which are related to transport infrastructureâdespite a string of setbacks seen last month, the head of the PPP Center said Friday.
These include the P60-billion Light Rail Transit (LRT) Line 1 extension, the P1.72-billion automated fare collection system, the P17.5-billion Mactan-Cebu International Airport and the P35-billion Cavite-Laguna Expressway, PPP Center executive director Cosette Canilao said in a briefing.
But a key part of the plan means working on setbacks that delayed or derailed at least three auctions, the biggest of which was the LRT-1 extension to Cavite province, which was declared a failure after bidders pulled out or did not comply with the bidding requirements last August 15.
Canilao said the government was moving to revise the bidding terms for this project. She said they were now allowing the government to absorb costly real property taxes, or RPTs, estimated at P2 billion, and provide a subsidy component during the bidding process.
Canilao reiterated that they have also decided to proceed to rebid the project, noting that the National Economic and Development Authority board would have to approve these actions.
The failure of the LRT-1 auction was believed to have prompted the DOTC to defer the bidding and refine the concession agreements for both the Mactan-Cebu Airport and the AFCS, originally scheduled to be auctioned last Aug. 28 and Aug. 30, respectively.
Canilao said the draft concession agreements for both projects were already released to bidders and that these would likely be auctioned by the end of October.
The submission for prequalification documents for Cavite Laguna Expressway, meanwhile, is scheduled on Sept. 23 with bid submissions set on December 27. Assuming there are no delays, the 47-kilometer expressway would be the last PPP deal to be bid out in 2013, Canilao said.
The PPP Center was also looking to roll out seven more projects, possibly within the second half, Canilao said.
These are the P5-billion integrated transport system project, the P297-million grains central project by the Department of Agriculture, and the New Centennial water supply project and Bulacan bulk water supply project, both under the Metropolitan Waterworks and Sewerage System.
The remaining three that could be rolled out are operations and maintenance contracts for the Panglao and Laguindingan provincial airports as well as prison facilities.
These deals are part of about 45 projects the government wants to auction under its PPP program. So far, three projects have been awarded since 2011.Â Miguel R. Camus
ABS-CBN News, 25 April 2013
MANILA — The Department of Transportation and Communications will be meeting with the pre-qualified bidders for the P60-billion Light Rail Transit (LRT) Line 1 Cavite Extension project.
“The conferences will give bidders the chance to bring up their questions and comments on the draft Concession Agreement which will eventually be awarded to the winning bidder,” the DOTC said in a statement.
“[T]his will enable the bidders to better prepare their respective bid proposals, which are due for submission on June 17,” the department added.
The agency said its Special Bids and Awards Committee and the Light Rail Transit Authority has scheduled the conferences from April 25 to 30. The government offices will be meeting with the consortium of DMCI Holdings Inc., the Light Rail Manila consortium, the consortium of SMC Infra Resources Inc., and the MTD Samsung consortium.
Last year, thirty-three companies bought invitation documents for said project. However, only six groups submitted their qualification documents and only four were declared qualified.
The LRT-1 Cavite Extension project will add additional stations to the existing line, allowing it to reach passengers in Niyog in Bacoor, Cavite. The government is also mulling to further extend this to DasmariĂ±as City and Imus.
17 September 2012, GMA News
Investors from China, Japan and the UK have expressed interest in two of the governmentâs public-private partnership (PPP) infrastructure projects, the head of the PPP Center said Monday.
âThey have expressed interest in the [Ninoy Aquino International Airport] and [Light Rail Transit] projects,â the Center’s executive director Cosette V. Canilao said in a press conference after the mid-year Philippine Economic Briefing among the country’s economic leaders.
The PPP Center is preparing to bid out the $1.4 billion LRT Line 1 Cavite Extension and Operations & Management contract as well as the $377.5 million Ninoy Aquino Expressway Phase II road project that would improve access to the airport.
The LRT and NAIA projects are two of the PPP projects that the government is set to roll out this year.
âWeâll launch at least eight projects this year. Weâve resolved most of the bottlenecks already,â Finance Secretary Cesar Purisima said.
So far, the government has been able to bid out the Daang Hari Project and the $239 million-worth PPP For School Infrastructure Project’s (PSIP) Phase I.
The Department of Education is set to bid out PSIP’s Phase 2 before the end of the year.
Three of this year’s eight PPP projects are still waiting for the National Economic and Development Authority (NEDA) Board’s approval: the $466.8-million Cavite-Laguna Expressway; the $128.3-million modernization of the Philippine Orthopedic Center; and the $11.3-million Vaccine Self-Sufficiency Project Phase II.
One project is up for review by the Investment Coordination Committee: the $38.1-million rehabilitation, operation and maintenance of Angat Hydro-Electric Powerplant’s Turbines 4 and 5. â BM, GMA News
Business Mirror, 30 August 2012
By Max De Leon
The government will offer to investors five more projects under the administrationâs Public-Private Partnership (PPP) Program within the year.
The Aquino administration already rolled out three such projects this year, and even with just four months to go, PPP Center Executive Director Cosette Canilao expressed confidence her office would be able to meet the governmentâs goal of starting the bidding process for a total of eight projects this year.
âWe are still positive that we would be able to meet that target,â Canilao said.
The government has started the selection process for private-sector investors for $239-million School Infrastructure Project Phase I, the $1.4-billion LRT Line 1 Cavite Extension and O&M (operations and management), and the $377.5-million Naia Expressway Phase II.
Canilao said the National Economic and Development Authority (Neda) Board, which is chaired by President Aquino, is now reviewing three of the remaining five projects to be rolled out this year.
These are the $128.3-million Modernization of Philippine Orthopedic Center Project, the $11.3-million Vaccine Self-Sufficiency Project Phase II and the $466.8-million Cavite-Laguna Expressway Project.
The Nedaâs Investment Coordination Committee (ICC), meanwhile, is still studying the $38.1-million O&M of Angat Hydro-Electric Power Plant Turbines 4 and 5.
After going through the ICC, the project would then be submitted to the Neda Board for final approval before it is offered to private investors. The paperwork for the $480.5-million Nlex-SlexÂ Â ConnectorÂ Â project, on the other hand, as proposed by interested proponent Metro Pacific Investment Corp. MPIC, is expected to be submitted by the Department of Public Works and Highways (DPWH) within the week or next week, Canilao said.
âThe Neda will take one month to study it and then have it ready for publication for possible Swiss challenge, most likely in October,â Canilao said.
If the MPIC offer is challenged, Canilao said the DPWH would have to consider both proposals. The government currently has 22 PPP projects in the pipeline.
17 August 2012, Business World Online
by Cliff Harvey Venzon
Submission of pre-qualification documents for the project to expand and operate the Light Rail Transit Line 1 (LRT-1) has been moved to accommodate bidder request, an official said on Friday.
Moving the submission date to Sept. 28 from Aug. 22 will âallow more bidders to participate [in the auction] and because many asked for extension,â Transportation Undersecretary Jose Perpetuo M. Lotilla said in a text message.
A special bid bulletin dated Aug. 16 and uploaded in the Transportation departmentâs Web site, meanwhile, said: âIn response to the request of several request from prospective bidders for more time to prepare the qualification documents and in light of the recent revisions to the instructions to prospective bidders, the qualification documents is extended to Sept. 28.â
According to a list provided by Transportation Secretary Manuel A. Roxas, 25 parties have purchased bid documents for the project, which is under the Public-Private Partnership (PPP) program, as of July 10, namely: SMC Infra Resources, Inc., Macquarie Group, Mitsubishi, D. M. Consunji, Inc., Hanjin Heavy Industries & Co., Ltd., Sumitomo Corp., Leighton Contractors, Sycip Salazar Hernandez and Gatmaitan Law Offices, FSG Capital, Inc., E. F. C. Enterprises, F. F. Cruz & Co. Inc., Marubeni Corp., BPI Capital Corp., ING Bank, Jorgman Planning & Development Corp., RATP Development, Benchtel Overseas Corp., Lenvoisa Construction, Inc., APT Global, Inc., Makati Development Corp., Tranzen Group, SERCO, Cathay Energy Service Corp. and Systra.
The P60-billion project involves the extension of the railway by 11.7 kilometers to Cavite from the Baclaran end-point. The project involves the operation and maintenance (O&M) of the railway, design/construction/ integration of the Cavite extension, and program for continued system enhancements.
According to a preliminary information memorandum released on June 4, the winning bidder will be named next year, with the contract to be awarded in March or April.
Turnover of the existing lineâs O&M, meanwhile, is in May 2013. Approval of the extensionâs detailed engineering is scheduled for September of the same year, with construction to start the following month. Partial operations are set for the third quarter of 2015.
The government will also bid out the purchase of additional rolling stock via a separate contract exclusively with Japanese firms, the memorandum said without specifying the date.
Delivery of new carriages and full operation of the extended LRT-1 is being eyed for the third or fourth quarter of 2017. Turnover of the system to the government is targeted in 2042-2047. Under the build-transfer-operate format, the winning bidder will assume the risks of construction and operation even as ownership is transferred to the government.
Only one PPP project — the P1.96-billion Daang Hari-Southern Luzon Expressway link won by Ayala Corp. last December — has been awarded since the centerpiece infrastructure program was launched in late 2010.
On Thursday, the government named BF Corp.-Riverbanks Development Corp. and Citicore Investments holdings, Inc.-Megawide Construction Corp., Inc. as winners for the PPP project to build 9,031 classrooms in three regions in Luzon.
Meanwhile, pre-qualification for the Ninoy Aquino International Airport Expressway Project Phase II, which is a P15.52-billion contract to construct a four-lane, 7.15-kilometer elevated road, has been set for Sept. 18. –Â Cliff Harvey C. Venzon
Philippine Star, 18 August 2012
By Lawrence Agcaoili
MANILA, Philippines – The Aquino administration is giving interested bidders in the proposed P60 billionLightÂ RailÂ TransitÂ extension to Cavite more time to prepare their bids as the deadline for the bidding has been extended by a month.
In a special bid bulletin,Â theÂ DepartmentÂ ofÂ TransportationÂ and Communications (DOTC) has moved the deadline for the submission of qualification documents to September 28 instead of the original schedule of August 22.
âIn response to the request of several prospective bidders for more time to prepare the qualification documents and in light of the recent revisions to the instructions to prospective bidders, the qualification documents submission date is extended to September 28,â the DOTC said.
The Cavite extension project would increase the span of Line 1 from 20.7 kilometers to 32.4 kilometers and will have a new south endpoint in Niog, Bacoor, Cavite. The extension 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. The government has set aside P30 billion to acquire up to 39 new Light Rail Vehicles for this project.
The extension would open up the Line 1 services to the nearly four million residents of ParaĂ±aque, Las PiĂ±as, and the Province of Cavite.
Conglomerates present during the investorsâ briefing and pre-qualification conference last July 10 included First Pacific and affiliate Metro Pacific Investments Corp. (MPIC), San Miguel Infrastructure, Ayala-controlled MakatiÂ DevelopmentÂ Corp, FF Cruz, and DMCI.
Foreign companies represented during the meeting were Japanese-owned Marubeni, Sumitomo, Mitsubishi, Itochu as well as French transportation contractors RATP Dev and Systa as well as Ecorail and Leighton Contractors.
Banks present during the conference were Ayala-controlledÂ BankÂ ofÂ thePhilippineÂ IslandsÂ (BPI), BDO Universal Bank of retail magnate Henry Sy, PNB Capital of banking and beverage tycoonÂ LucioÂ Tan, China Bank, and Dutch financial giant ING Bank, and American-owned Citi.
The Manila Line 1 project would bid out the operations and maintenance of the existing LRT Line 1 system, the construction of the Line 1 Cavite Extension, and the O&M of both existing and extension as an integrated system.
The construction of the tracks, the stations and all its attendant facilities, as well as O&M, worth about P30 billion, would be bidded out. The other half of the P60-billion project, which includes the purchase of the coaches, would come from the government through official development assistance (ODA).
GMA Network, 17 August 2012
Philippine Embassy – Tokyo, 16 August 2012
Japanese investorsâ keen interest in the Philippinesâ Public-Private Partnership (PPP) Program was once again affirmed with the successful staging of the PPP Seminar at the ASEAN-Japan Center in Tokyo last 02 August.
Organized by the Public-Private Partnership (PPP) Center and the Department of Transportation and Communication (DOTC) in cooperation with the Philippine Embassy in Tokyo, the Seminar was attended by around fifty participants representing major Japanese companies, as well as partner institutions such as the Japan International Cooperation Agency (JICA).
Philippine Embassy ChargĂ© dâAffaires Gina A. Jamoralin formally opened the proceedings with welcome remarks that highlighted the Philippine Governmentâs vigorous pursuit of infrastructure development, as well as the excellent investment opportunities offered by the Philippines, which has outperformed other regional economies and whose strong and sustained growth has placed it high on the radar of investors around the globe.
DOTC Assistant Secretary Jaime Raphael Feliciano gave a well-received presentation on the Manila LRT1 Extension, Maintenance and Operations Project, one of the latest PPP projects to be rolled-out by the Aquino Administration and to be opened to pre-qualification and bidding by prospective investors. PPP Center Executive Director Cosette V. Canilao followed with an overview of the Philippine Governmentâs PPP Program and a summary of the status of pipeline PPP projects that drew enthusiastic reactions from the participants.
The presentations were followed by an open forum and one-on-one consultations that enabled participating Japanese firms and organizations to engage the visiting Philippine PPP team in discussions on specific aspects of the LRT1 project and the PPP Program as a whole.
The top source of foreign direct investments and ODA in the Philippines, Japan has expressed strong support for the Aquino Administrationâs infrastructure development initiatives under the PPP scheme, both at the level of its government and business sector. It regards the PPP program as providing an attractive window for Japanese investments in the country, and for furthering Japanese collaboration with the Philippine government in boosting infrastructure growth using Japanese innovations and systems.
Infrastructure development and the PPP are both key pillars of the Aquino Administrationâs strategy towards promoting and attaining inclusive growth.
Manila Times, 01 August 2012
The Manila Metro Line 1 Extension, Maintenance and Operations Project Investorsâ briefing was successfully held in Madrid on July 23 at the headquarters of the Spanish Confederation of Business Organizations (CEOE in Spanish) with about 50 participants from about 27 Spanish companies in attendance.
The briefing was organized by the Philippine Embassy and Philippine Trade and Investment Center (PTIC) in Madrid.
Among the major Spanish companies in the transport industry in attendance were, Metro de Madrid, Renfe, CAF, Indra, Centunion, Ineco, Getinsa, IDOM, Cemex, OHL, Abengoa, AEDIP, Seopan and Talgo, among others
The briefing started with the delivery of opening remarks by the CEOE President of the Council for Trade Promotion, JosĂ© Luis Gonzalez VallvĂ©, the Director General for Commerce and Investment of the Spanish Ministry of Economy and Competitiveness, Antonio FernĂĄndez-Martos, and Philippine Ambassador to Spain Carlos Salinas.
The Ambassador, at the beginning of his welcome remarks, stressed that fprogress requires a strong collaboration and the concerted effort of all sectors of societyâthe government, people, and the private sector.
He also underscored that infrastructure development is vital in the economic growth of a country. The Philippine Development Plan 2011-2016 recognizes the critical role that infrastructure plays in the economic development of the Philippines.
In his speech, Martos highlighted the recent visit of Queen Sofia to the Philippines as an indication of the strong bilateral relations between Spain and the Philippines. He said that he was delighted of the visit of the Philippine delegation and the opportunity given to the Spanish companies to hear about and participate in the pipeline transportation and infrastructure projects in the Philippines.
He further said that six of 10 global players in the transport industry are based in Spain and that Spanish companies are leaders in the sectors that are being promoted under the public-private partnership (PPP) Program of the Philippine Government. He was also glad to announce to the Spanish audience that a PPP project was awarded last year to Spanish company GETINSA, who is part of a consortium who tendered a bid for the said project.
After the briefing, the Philippine delegation composed of Department of Finance Undersecretary John Philip Sevilla, Department of Transportation and Communication Assistant Secretary Jaime Raphael Feliciano, PPP Center Executive Director Cosette Canilao, Development Bank of the Philippines Manager for Banking Investment Nicolas Chua and International Finance Corp. Counsel Adviser Lulu Baclagon, divided themselves into three groups to accommodate requests for one-on-one consultations.
Two discussed the Metro line 1 extension, maintenance and operation project, and another one discussed the other PPP projects. A total of 19 consultations were arranged with the participation of 11 Spanish companies.
In closing, Salinas invited the audience to visit the Philippines to see for themselves the opportunities that are available to them, or to talk to Spanish companies doing business in the Philippines and inquire on how the business goes in the country.
Manila Bulletin, 11 June 2012
MANILA, Philippines — Chinaâs biggest railway builder and operator China Railway Construction Corp. Ltd. (CRCC) has renewed its commitment in building the $1.3-billion LRT Line 1 extension to Cavite province under PNoyâs Public-Private Partnership Program.
This was bared by Jerome Canlas, executive vice president of Ecorail Transport Services, Inc., the original proponent for the construction of LRT-1 Extension, who said that its foreign partner China Railway Construction Corporation Limited, one of the worldâs leaders in railways construction and technology, has relayed to the consortium that that it wants to pursue the project under the PPP.
Canlas said Ecorail is already in the third stage of its unsolicited proposal to design, finance, build, transfer and manage has the advantage over the project proponents considering its track record in railway and train construction and its strong financial capability is readily available once the government gives the final for the project to proceed.
CRCC is one of the biggest in the world with assets of more than US$1 trillion and ranked 6th consistently for a period of nine years in the 225 largest contractors and among the top 500 enterprises in the world by Forbes magazine. CRCC is the operator of the worldâs fastest train that traverse the Wuhan-Guangzhou line. CRCC, has already built 34,000 kilometers of railway tracks in 60 countries all over the world, including the 1,200-km Qing Hai-Tibet railway line. In 2008, CRCC listed its shares in the Shanghai and Hong Kong Stock Exchanges, raising the second largest initial public offering (IPO) in the world with US$ 5.71 billion second only to the IPO of Visa with US$19.65 billion.
âWe hereby affirm our interest to cooperate with your esteemed organization to jointly pursue the above project which not only further underscores our mutual long term relationship but also progression of the framework of cooperation agreement entered into by both our organizations in Tianjin in June 2009, Hu Zhenyi, CRCC Executive Director and Vice President, said in his letter to Ecorail.
Cost-wise, the infrastructure development of Ecorail proposal is a lot cheaper at US$ 42.165 M per kilometer as against the other proposals at more than US$ 45 M per kilometer. The proposal for electro-mechanical works inclusive of the provision for rolling stocks sufficient to accommodate the peak ridership at 25 minutes headway over a period of time is also cheaper at US$409.14 million as against other proposals.
Ecorail is composed of well-experienced and experts in the fields of project financial packaging, project development inclusive of Engineering, Procurement and Construction as well as Operations and Maintenance Management at par with international standards.
Ecorail proposition will reduce the governmentâs balance of payment deficits and/or reduce subsidies which are advantageous to the Philippine Government, which is expected to minimize exposure to the project because it has no government guarantee.
Length-wise, the alignment of the LRT Line 1 South Extension proposed by ECORAIL is longer by more than 4 kilometers with its terminal point in Imus, Cavite as against the other proposals with terminal stations in Bacoor, Cavite. The project provides the much-needed link between the southern cities and municipalities of Cavite province and northern cities of Metro Manila. The railway system is intended to provide an efficient and reliable mode of transportation to help decongest the main arteries of Metro Manila.
LRT 1 extension will supplement the LRT 1 by extending it from Baclaran to Imus, Cavite; It will pass NAIA, Sucat, both in Paranaque Las Pinas, Zapote in Muntinlupa, and Talaba, Bacoor, Aguinaldo and finally Imus, all in Cavite.
Canlas said Ecorail has a âprogrammed solutionâ for system enhancement and full integration provided by its designated team of specialists covering the North Line 1 Extension, the Existing Line 1 and the proposed South Line 1 Extension into a ââseamless operation.ââ