Add’l components of LRT 1 Extension to cost P5 B more

MANILA, Philippines - The additional components for the Light Rail Transit (LRT1) Cavite expansion project is expected to cost P5 billion after the National Economic and Development Authority (NEDA) approved the changes to the concession agreement to make it more attractive to prospective bidders.

Michael Arthur Sagcal, spokesperson of the Department of Transportation and Communications (DOTC), said the addition of several components entailed an increase in the cost of the public private partnership (PPP) project to P 64.9 billion from P60 billion.

Sagcal said the new components would now form part of the winning concessionaire’s obligations.

He pointed out that the DOTC originally intended to pursue the additional components as separate projects but decided to include it in the project to make it more robust.

The additional components include some remedial and rehabilitation works for the existing system such as repairing the carriage viaduct, rehabilitating existing trains especially their roofing, as well as making the LRT-1 system compliant with laws and regulations.

Other components include the installation of equipment that would be part of the common ticketing system called the Automatic Fare Collection System (AFCS) that is also being auctioned by the DOTC.

Sagcal said other components include contingency costs, on account of the interface risk with related projects such as the AFCS PPP, the construction of the common station linking LRT-1 with Metro Rail Transit (MRT) Lines 3 and 7 in the EDSA-North Ave. area, and the LRT-1 Cavite extension project components procured under the project’s Official Development Assistance (ODA) portion.