By Azer N. Parrocha
MANILA, Oct. 2 (PNA) — The concession agreement for the Php65-billion Light Rail Transit Line 1 (LRT-1) Cavite Extension and Operations and Maintenance Project was finally signed by the Light Rail Manila Corporation (LRMC) during a formal ceremony on Thursday.
This signing event came after the Department of Transportation and Communications (DOTC) on Sept. 13 awarded the project to the consortium after undergoing multiple delays.
LRMC is composed of the Metro Pacific Investments Corp., (MPIC) Ayala Corp. (Ayala) and Macquire Infrastructure Holdings Philippines Pte. Ltd (MIHPL).
Under the 32-year concession agreement, the consortium will operate and maintain the existing LRT-1 and construct an 11.7 km extension from the present end-point at Baclaran to the Niog area in Bacoor, Cavite. A total of eight new stations will also be built along this route.
A total of Php35-billion will be invested by the consortium in the project, which aims to help ease the worsening traffic conditions in the Paranaque-Las Pinas-Cavite corridor.
It is also expected to enhance commercial development around the rail stations.
Signing the concession agreement were President and CEO of MPIC Jose Ma. K. Lim, President and CEO of Ayala’s AC Infrastructure Holdings Corp. (AC Infra) John Eric T. Francia, and DOTC Secretary Joseph Emilio A. Abaya.
Meanwhile, witnessing the signing were MPIC Chairman Manuel V. Pangilinan, Ayala President and COO Fernando Zobel de Ayala, MIHPL Managing Director Michael Rodriguez, DOTC Asec Jaime A. Caringal, and PPP Center Executive Director Cosette V. Canilao.
MPIC’s Pangilinan expressed gratitude upon formally receiving the award from the DOTC and the Light Rail Transit Authority (LRTA).
“Let me just say that it is a commitment of this consortium to deliver a safe reliable and world-class rail system to Metro Manila,” Pangilinan said.
“We are committed as well to bring value for what the commuter will pay for eventually. We look forward to a smooth transition on the LRTA (Light Rail Transit Authority) and to working with them closely,” he added.
Ayala, for his part, congratulated the DOTC, LRTA and the PPA for the successful bidding of the LRT-1 project and expressed delight for having reached another milestone.
“We are grateful for handling the process so professionally and transparently at each stage of the process. I also congratulate all the members of the working team LRMC for hard work,” Ayala said.
“We are delighted to be working with the MPIC. We cannot imagine a better group to partner with for a project of this scale and complexity. We are also glad to have Macquire as investment partner,” he added.
The DOTC chief meanwhile said that the signing of the concession agreement is proof of the firm determination to bring much needed transport services to Filipinos despite the many obstacles along the way.
“It’s no secret that there was a failed bidding last year and although we have to revisit the terms of this contract to arrive at the point that is genuinely fair to both the government and to the private sector,” Abaya said.
“It’s also no secret that there were legal challenges that we had to smooth out before finally awarding this project to LRMC,” he added.
He said that however, having made it to this point showed that DOTC is strongly committed to the infrastructure development of this country which, he said, for too long had been hampered.
“It is only during the Aquino admin that we are finally making the (project) a reality and at no cost to the taxpayers who have waited too long for the project to happen,” he added.
DOTC had said that LRMC may begin construction works and take over LRT-1 operations within a maximum of one year from the signing of the concession agreement.
The PPP project is expected to be fully operational within 54 months or by May 2019, the agency further said. (PNA)