JBIC wants LRT project started immediately

Japan Bank for International Cooperation has asked Finance Secretary Cesar Purisima to clear the immediate start of the P8-billion LRT 1 expanion project won by Sumitomo of Japan.

JBIC chief representative Osamu Murata, in a strongly worded letter of Purisima, characterized the delay in the project as "avoidable and meaingless (and) never in the interest of (the government) and the Philippine people."

Sumitomo won the contract but some parties, including congressmen, have been pushing for a re-bid. Marubeni was the losing bidder. Newly installed LRTA administrator Mel Robles awarded the contract to Sumitomo based on bidding results.

The project is strategically important to improving the 20-year old LRT 1 service from Monumento to Baclaran by modernizing all equipment and installing computerized signaling systems for safer and efficient travel. It will also allow the line to carry more passengers.

Murata also asked for an "official explanation" from the Philippine government, if Manila "delays further the project." JBIC agreed five years ago to fund the LRT-1 expansion with a soft loan.

He effectively told DoF that there are no hurdles to the project, contrary to the claims by some congressmen and other unidentified parties who are pushing for a rebid. DoF is the borrower for the soft loan from JBIC for the project and the oversight agency as well.

He said it is the government and the public that stand to lose from any further delay in the project that should be in place by this year had the original scheduled been followed.

The capacity expansion project includes additional 48 new air-conditioned trains as well upgrade of platforms and construction of escalators in some stations.

Any delay in this capacity expansion project will also further delay in LRT Line 1 extension from Baclaran to Cavite.