Six more firms eye LRT-2 O&M contract

MANILA, Philippines – Six more companies have expressed interest in the Light Rail Transit Line 2 (LRT-2) operation and maintenance (O&M) Public-Private Partnership (PPP) project of the Department of Transportation and Communications (DOTC).

The PPP Center said the new prospective bidders include Miescorrail of electricity giant Manila Electric Co. (Meralco), Hyundai Rotem Co., TUV Rheiland, Aboitiz Equity Ventures, SMRT International and MTR Hong Kong.

This brought to 12 the number of companies eyeing the bidding of the O&M PPP project. 

The firms that earlier bought bid documents for the project include the tandem of conglomerate Ayala Corp. and infrastructure giant Metro Pacific Investments Corp. (MPIC) through Light Rail Manila Consortium (LRMC), GT Capital Holdings of taipan George SK Ty, diversified conglomerate San Miguel Corp., Marubeni Corp. of Japan, RATP Development and DMCI Holdings Inc.

DOTC Undersecretary Jose Perpetuo Lotilla said the government is pushing PPP projects that would make the transportation system in the country more efficient and safe.

“In line with the government’s objective to make everything more efficient, more nimble and address the needs of the people in Metro Manila — this project was conceived and being offered to the private sector to do the operation and maintenance”, he said.

The winning bidder would operate and maintain the existing 13.8-kilometer LRT-2 from C. M. Recto Ave. in Avenida, Manila to Santolan in Pasig City with 11 stations, as well as the proposed P9.7-billion extension project covering an additional 4.19 kilometers and two stations all the way to Masinag in Antipolo City.

The winner would also operate and maintain other future extension of the LRT-2 system. The extension is expected to further increase the current 200,000 daily passenger volume of the mass transit system that traverses the cities of Manila, San Juan, Quezon City, Marikina and Pasig.

The concession period for the operation and maintenance of LRT-2 would be between 10 years and 15 years.

The DOTC and LRTA has already signed a concession agreement with the LRMC for the P65 billion extension project of the LRT-1 all the way to Niog in Bacoor, Cavite from the Baclaran station in Paranaque City.

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.