MRTC, a consortium composed of the Ayala group, Fil Estate, Greenfields, Anglo Phil and Ramcar, has been negotiating with government for the last two weeks over the terms of a build-transfer (BT) contract for the second phase of the project covering North Avenue to Monumento. The first phase covers Taft Avenue in Manila to North Avenue in Quezon City.
According to DOTC Undersecretary Wilfredo Trinidad, they were given by Alvarez until Oct. 15 to finalize the negotiations, after which the proposed terms will be submitted to the NEDA Investment Coordinating Council (ICC) for approval.
"Our agreement is if they are unable to comply, then we will bid out the project by November this year," Trinidad said.
MRT3 project director Mario Miranda of the DOTC said that the consortium was given the first crack at undertaking the second phase of the project so as to ensure a smooth connection between that and the first phase.
Among the issues that have yet to be ironed out are certain technical details, the termination clause, the inclusion of a performance undertaking, the cost of the project, and the amortization schedule.
Unlike an outright guarantee which begins upon the signing of the loan agreement, a performance undertaking will begin only once the project is finished.
Miranda said government is prepared to make a counteroffer by today on the $311 project cost given by the consortium. "We also have to decide on their proposal on a 48 rail car system. The number has to be reviewed in the light of projected demand. Otherwise, we might have an underutilization of capacity," he said.
The consortium is also suggesting a 25-year time period within which government will amortize the project.
Miranda, meanwhile, denied reports that the consortium was pushing for a build-lease-transfer (BLT) scheme similar to the one adopted for the first phase.
Also yesterday, LRT and MRTC revealed that construction of the $900,000 elevated walkway project that will link MRT3 and LRT 1 will begin in three weeks’ time.
The project is expected to be finished by March 31 next year. It is funded by MRTC from savings realized from the first phase, Miranda said.