BCDA weighs bidding options for Clark rail project

MANILA, Philippines - The Bases Conversion and Development Authority (BCDA) will decide on the form of procurement to be used for the Clark Rail Transit System this year.

BCDA president and chief executive officer Arnel Paciano Casanova told reporters on the sidelines of the 13th Hitachi Young Leaders Initiative the state-run firm wants to determine the concrete procurement method for the Clark Rail Transit System within the year.

“(We want) at least to have something that is concrete or terms of reference that we can bring to the attention of President Aquino,” he said.

While the BCDA is considering to bid out the project, it is also open to receiving unsolicited proposals from a group of companies that would form a consortium for the railway system.

“Our target really is to do it (decide) within the year,” Casanova said.

He said the BCDA would want to enter into a joint venture for the project instead of a civil works contract so the risks could be shared both by the government and the private sector.

The P200-billion Clark Rail will link with the North-South Commuter Railway project of the Department of Transportation and Communications.

It will connect Clark Green City, Clark International Airport, Clark Special Economic Zone and Tarlac to Manila through the construction of a railway from Tarlac City to Tutuban.

Hitachi Asia Ltd. and two other Japanese firms have expressed interest in the railway project.

Casanova said the BCDA has entered into a memorandum of understanding and non-disclosure agreement with Hitachi so the firm could study the Clark railway system.

While BCDA is open to partner with Hitachi for the Clark railway system, he clarified both parties have not made commitments.

“Of course, we are open to partnership with them but well, we don’t have anything definite yet,” he said.

For his part, Ichiro Iino, Hitachi chief executive for Asia Pacific, told reporters the firm is currently in talks with the government as well as local companies to address transport needs in the development of Clark Green City.

“Clark development is one of the project(s) we are currently trying to engage in…Clark Green City, they need transportation. They need ecosystem,” he said noting the firm could provide the light rail transit system and monorails.

Aside from Clark Rail, Mitsuhiko Shimizu, general manager for Hitachi’s Philippine branch, said the firm would also be interested to participate in railway and airport projects under the government’s flagship public private partnership (PPP) program.

“Depending on the project, we assess the potential and the right partners for each particular projects,” he said.

Among the PPP projects under procurement are the operation and maintenance of the Light Rail Transit (LRT) Line 2; development, operations and maintenance of the regional airports New Bohol (Panglao), Laguindingan, Davao, Bacolod and Iloilo; and the North-South Railway Project (South Line).