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DOTC eyes rebid of LRT 1 extension deal


The Department of Transportation and Communications (DOTC)  may rebid the P60-billion deal to extend the Light Rail Transit (LRT) Line 1 to Cavite province after three bidders withdrew Thursday while the only remaining bidder, Metro Pacific Investments Corp.-led Light Rail Manila Consortium, failed to comply with the auction requirements, officials said.

Still, the DOTC stopped short of declaring a failed bid. It said it would review all its options for the public private partnership deal, one of the DOTC’s largest, said Transportation Undersecretary and head of the bids and awards committee Jose Lotilla.

Cosette Canilao, executive director of the PPP Center, told reporters that a rebidding was one of the options that would be considered.

Only Light Rail submitted its technical and financial proposals on Thursday even after Metro Pacific’s partner, Ayala Corp., backed out of this project.  The two have an exclusive alliance to bid for railway projects in Metro Manila.

Consortiums led by San Miguel Corp., DMCI Holdings and MTD-Samsung of Malaysia and South Korea, withdrew their bids, Lotilla said.

The DOTC did not share their reasons for pulling out.

“Remember, the bidders are commercial entities, their primary concern is financial,” said Lotilla without elaborating.

He also declined to call Thursday’s exercise an outright rejection of Light Rail’s proposal even as he noted that the company’s offer did not comply with the government’s requirements.

“The terms of the bidding are such that it is required that the bidder must accept all of the terms and conditions of the government. They had certain conditions,” Lotilla said.

“Basically they are saying the terms and conditions today are not what they are willing to accept,” Lotilla added.

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Tags: Business , DoTC , LRT 1 extension , rebidding

  • oldsong23

    The problem this bidders are pulling out is because of the bureaucracy in the govt. The bidders know that it is very difficult to deal with this govt because of politicking and corruption…remember the Czech’s experience….? This project has been delayed so many times….the more the delays the more it becomes costly…but I tell you…the people in the govt will do its can to pursue and bid out this project…there’s money in it….

  • RealityCheckX

    Why not attend to the lack of cars in LRT1 and 2 first? It’s already an emergency that deserves the diversion of Noy2′s pork and Congress’ too. Then stop further delay by negotiating a reasonable deal with MVP’s firm. Third, stop all other PPP projects. They make things more expensive for the people. Let’s not forget the electricity disasters that Cory, her senate and then FVR saddled us with.

  • sigena

    laki kasi hingi sa patong. kaya umayaw

  • http://www.yellowmythbusters.gov.ph/ Weder-Weder Lang

    Whatever you do with the LRT / MRT bidding, just make sure to keep out PNoy’s relatives out of it. Relatives such as Ballsy Aquino-Cruz and her husband Eldon. And Pnoy’s first cousin Jorge Aquino Lichauco, too. Once these presidential relatives get involved, they make a whole lot of mess.

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