MPIC-Ayala raring to start LRT 1 Ext

MANILA, Philippines - The tandem of infrastructure giant Metro Pacific Investments Corp. (MPIC) and conglomerate Ayala Corp. is raring to start work on the P65-billion public private partnership (PPP) project extending the Light Rail Transit line 1 (LRT-1) all the way to Bacoor in Cavite from Baclaran in Paranaque City.

John Eric Francia, managing director of Ayala Corp., said the Light Rail Manila Consortium has 20 days to fulfill the post award requirements including the 10-percent down payment after which a concession agreement would be signed with the Department of Transportation and Communications (DOTC).

 “We expect to make the 10-percent down payment along this process. We have been preparing for this and eager to hit the ground running,” Francia said.

MPIC president Jose Maria K. Lim earlier said the consortium is ready to make a payment of P935 million equivalent to 10 percent of the premium offer before the signing of the concession agreement for the PPP project.

Lim explained that the balance of 90 percent would be paid during the 32-year concession period.

 “We are expecting the right of way to start in 2015,” he said earlier.

The lead member of the group is MPIC Light Rail Corp. with 55 percent while other members include Ayala’s AC Infrastructure Holdings Corp. with 35 percent and Macquaire Infrastructure Holdings (Philippines) Pte Ltd. with 10 percent.

Transportation Secretary Joseph Emilio Abaya said the Light Rail Manila Consortium could take over the operations of LRT-1 and begin construction works by October next year or within a maximum of one year from the signing of the concession agreement.

Abaya said the PPP project should be fully operational within 54 months or by May 2019.

 “We are pleased to push the project forward for the sake of the riding public, especially those who live in the southern part of Metro Manila such as Pasay, Parañaque, Las Piñas, and Muntinlupa, as well as Cavite. This project will level the playing field for them, giving them convenient access to employment and educational opportunities in the metropolis,” he added.