LRMC scouts new rail projects

MANILA, Philippines — The Light Rail Manila Corp. (LRMC) plans to compete in the bidding of future rail developments as the government pivots to funding its big-ticket projects through public-private partnerships (PPP).

LRMC president and CEO Juan Alfonso told reporters the firm would look into opportunities in the rail sector under the Marcos administration, but has yet to identify which rail proposals it would keep an eye on once opened to a Swiss challenge.

He said LRMC would examine the costs and benefits of each rail project offered by the government for PPP given the capital requirements of completing them. In particular, it would evaluate the difficulty level of right of way acquisition, one of the leading causes of project delays.

“If it makes sense, then we will consider it. It is difficult to commit anything right now because we have to see it [proposal] first,” Alfonso said.

“The capex requirements are huge. I guess for us it will depend on if they make sense. Right of way is something that might be too difficult,” he added.

For now, Alfonso said LRMC would focus on completing the Cavite Extension of the Light Rail Transit Line 1 (LRT-1) scheduled for operation in late 2024.

Alfonso said LRMC spent an additional P4 billion for the Cavite segment due to pandemic delays, highlighting the capital demands of maintaining, operating and upgrading a railway.

The LRMC missed its target of opening LRT-1 Cavite Extension to the public by the end of 2021 due to construction delays caused by pandemic restrictions. The concessionaire has since caught up with its work backlog and has completed 83 percent of the first segment of the extension.

As it stands, the initial portion of the project from Redemptorist Station to Dr. Santos Station will be opened to commuters by September 2024. Once built in its entirety, the P64.92 billion LRT-1 Cavite Extension is expected to cut travel time between Pasay City and Cavite to just 25 minutes.

Under the Marcos administration, the government is evaluating unsolicited proposals to construct at least six new railways around Metro Manila and in Cavite and Cebu.

Last week, Transportation Secretary Jaime Bautista announced that his agency received a revised proposal to build the P81.79 billion Metro Rail Transit Line 11 that will run from Balintawak in Quezon City to San Jose del Monte in Bulacan.