MPIC open to partnership with Ayala for P171-B railway PPP

MANILA, Philippines - Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) is open to partner with Ayala Corp. for the P171-billion South Line of the North-South Railway Project (NSRP), the biggest project under the government’s public private partnership (PPP) program to date, its top official said yesterday.

“We’re open,” MPIC chairman Manuel V. Pangilinan told reporters when asked about a possible partnership with Ayala for the project.

Earlier, Ayala managing director Eric Francia said the company is in discussions with firms including MPIC to form a consortium for the railway project.

“We’re talking. Nothing has been formalized yet in terms of our consortium but we’re definitely talking to partners and MPIC is the most advanced in that regard,” he said.

The proposed South Line of the NSRP under the PPP covers the construction of the 56-kilometer (km) commuter rail service from Tutuban, Manila to Calamba, Laguna and the 478-km long-haul rail service from Tutuban to Legazpi in Albay.

The long-haul service will have the following possible extensions: 58 km from Calamba, Laguna to Batangas City; and 117 km from Legazpi to Matnog, Sorsogon.

Aside from design, construction and financing, the winning bidder for the project will also be handling the operations and maintenance of the commuter rail service.

The Philippine National Railways currently operates the commuter line service from Tutuban to Calamba. The line serves around 75,000 commuters daily.

The Department of Transportation and Communications published the invitation to interested bidders for the project last month.

The pre-qualification date for the project is targeted within the fourth quarter of this year, while bid opening will likely be held in January next year, to be followed by the awarding in March.

Aside from the South Line of the NSRP, Pangilinan said MPIC is also interested in other PPP projects in the pipeline such as the Ninoy Aquino International Airport (NAIA) development project and the Light Rail Transit (LRT) Line 4 project.

“I’m not saying we will bid, but we will look at them,” he said.

The two projects need to secure the approval of the National Economic and Development Authority Board chaired by President Aquino before roll out.

The NAIA development project will cover the upgrade and enhancement of operational efficiencies of all existing terminals of the country’s main gateway to meet the International Civil Aviation Organization standards.

The LRT Line 4, meanwhile, involves the construction as well as operations and maintenance of an 11-km rail that will run from SM City Taytay to the intersection of Ortigas Avenue and EDSA.

Earlier, MPIC, in partnership with Ayala, bagged PPP projects such as the LRT Line 1 Cavite Extension and the Automatic Fare Collection System for the country’s railway systems.