MANILA, Philippines - The governments of the Philippines and Japan are set to ink a P30- billion loan agreement next month to bankroll the acquisition of trains for the P60.6-billion Light Rail Transit line 1 (LRT-1) extension to Bacoor in Cavite.
DOTC Undersecretary Jose Lotilla said in an interview with reporters on the sidelines of the pre-bid conference of the Cavite LRT-1 extension project that the tentative date of the signing of the loan package with Japan International Cooperation Agency (JICA) is on March 15.
“We expect to sign the loan denominated in Japanese yen worth roughly about P30 billion on March 15,†Lotilla stressed.
He added that the terms of the concessional loan are still being finalized but it would be include a provision requiring Japanese companies to be involved in the deal.
Proceeds of the loan through an official development assistance (ODA) scheme of the Japanese government amounting to P30 billion would be used to acquire up to 39 new Light Rail Vehicles (LRVs) for the project.
The Cavite extension project would increase the span of LRT-1 to 32.4 kilometers from 20.7 kilometers with a new south endpoint in Niog, Bacoor, Cavite instead of Baclaran. The extension project includes 10 stations, 10.5 kilometers of viaduct, support beams, and three 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 Parañaque, Las Piñas, and the Province of Cavite.
The cost was placed at about P30.6 billion.
Lotilla said the DOTC has decided to pursue the construction of 10 stations instead of an option of only eight stations. The stations would include Redemptorist church in Baclaran, MIA Road, Asiaworld, N. Aquino, Dr. Santos, Manuyo Uno, Las Pinas, Zapote, Talaba, and finally Niog.
Last November, the DOTC’s special bids and awards committee has cleared the participation of the Light Rail Manila Consortium, MTD-Samsung Group, San Miguel Infrastructure Resources Inc., and DMCI Holdings Inc. after beating the Oct. 22 deadline.
The Light Rail Manila consortium is led by First Pacific’s Metro Pacific Investments Corp. (MPIC) with 33 percent followed by diversified conglomerate Ayala Corp. with 33 percent, AC Infra Holdings Corp. with 12 percent, Macguarie Infra Holdings Philippines PTE Ltd with 10 percent, and RATP Development SA with one participation unit.
The group’s railway infrastructure would be handled by Bouygues travaux Publics SA, Obrascon Huarte Lain SA, and Leighton Contractors Asia Ltd. while the railway system would be handled by Alstom Transport Sa and Ansaldo STS s PA. The operation and maintenance would be handled by RATP Development SA.
On the other hand, the MTD-Samsung group is composed of MTD Capital Bhd. with 33 percent followed by Samsung C&T Corp. with 20 percent, Union Equities Inc. with 15 percent, DM Wenceslao & Associates with 12 percent, and Primewater Infra Corp. with 20 percent.
The railway infrastructure would be handled by MTD Capital and Samsung C&T and system by Hyundai Rotern Co. The operation and management will be handled by Seoul Metro.
Diversified conglomerate San Miguel Corp. through San Miguel Infra Resources Inc. lead the group composed of GS Engineering and construction Corp. and POSCO Engineering and Construction Co ltd. The railway set would be taken care of POSCO Engineering Co Ltd. and the railway system would be handled by Korea Railroad Corp.