MPIC-Ayala tandem expects award of LRT 1 Ext project this week

MANILA, Philippines - The highest bidder for the P65-billion Light Rail Transit Line 1 Cavite Extension project said it is confident the Department of Transportation and Communications (DOTC) would award the Public-Private Partnership (PPP) project amid the decision of the Supreme Court on the location of the common station.

John Eric Francia, managing director of conglomerate Ayala Corp., said in a text message the Light Rail Manila Consortium is confident the DOTC would issue the notice of award for the PPP project soon.

“We don’t think this will delay the LRT-1 project, and we look forward to the awarding,” he said.

Ayala, through AC Infrastructure Holdings Corp., has a 35-percent stake in the group led by MPIC Light Rail Corp. of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) with 55 percent, and Macquaire Infrastructure Holdings (Philippines) Pte Ltd. with 10 percent.

Transportation Secretary Joseph Emilio Abaya said they would try to issue the notice of award to the Light Rail Manila Consortium within this week after failing to do so last week.

Abaya said the agency is now seeking an opinion from the Office of the Solicitor General on how to proceed with the awarding amid the cases involving the common station.

Abaya added that the LRTA board resolution approving the award of the PPP project to the Light Rail Manila Consortium is still awaiting signatures of two more board members.

“We are still awaiting a couple of signatures from the board of directors because of some issues raised to us by some stakeholders. We have referred the item to OSG (Office of the Solicitor General) so we are awaiting that,” Abaya said.

The consortium was the lone bidder that submitted a bid last May 28 while other bidders, including diversified conglomerate San Miguel Corp. (SMC) through SMC Infra Resources Inc., construction giant DMCI Holdings Inc., Filipino-owned Megawide Construction Corp., Spanish-owned Globalvia

Inversiones SAU, Eco Rail Services Inc. of businessman Reghis Romero II, and Malaysian-owned MTD Philippines Inc., did not submit bids.

The group offered a premium payment of P9.35 billion to undertake the PPP project extending the span of the existing LRT-1 along Taft Ave. to 32.4 kilometers from 20.7 km all the way to Niog in Bacoor, Cavite from Baclaran in Parañaque.

The Supreme Court has issued a temporary restraining order (TRO) preventing the government from implementing the transfer of the location of the proposed P1.4-billion common station interconnecting the Metro Rail Transit (MRT) and the LRT to Trinoma Mall instead of SM North EDSA.

“We will continue working on the award unless and until we receive any TRO or injunctive writ from the SC. As we have said before, the DOTC will respect court issuances, but as long as we have not been legally prohibited from doing our work, we will continue pushing for our infrastructure projects since this is our commitment to the public,” DOTC spokesperson Michael Arthur Sagcal said.

SM Prime Holdings Inc. of retail and banking magnate Henry Sy elevated the case to the SC after it failed to get a TRO from the Pasay City Regional Trial Court.

In its petition, SM Prime Holdings said the location of the common station is in front of SM City North EDSA and should be named SM in exchange for P200 million. However, the DOTC argued that the MOA has lapsed as the National Economic and Development Authority (NEDA) already approved the construction of the proposed MRT-LRT common station at the Trinoma Mall.