Ayala-Metro Pacific wins first PPP contract

FILE PHOTO

MANILA—A consortium made up of Ayala Corp. and Metro Pacific Investments Corp. has bagged a P1.72-billion deal to develop and operate a common ticketing system for elevated railways in Metro Manila under government’s so-called public private partnership program, PPP Center executive director Cosette Canilao said Friday.

The awarding of the project, formally known as the Automated Fare Collection System, had been delayed for about a month mainly due to issues raised by disqualified bidder E-Trans Solutions Joint Venture.

The AFCS deal is the first PPP project to be awarded by the Department of Transportation and Communications, which has been strongly criticized for the pace at which it has been rolling out projects considered a key part of the Aquino administration’s cornerstone infrastructure program.

Canilao said in a text message that the notice of award was issued to Ayala and Metro Pacific’s AF Consortium late Thursday. Metro Pacific chief financial officer David Nicol confirmed the award separately on Friday.

Canilao said the signing of the concession agreement was expected within 20 days.

Sought for comment on Friday, E-Trans Solutions’ legal counsel Conrad Tolentino said they remained keen on pursuing the project.

“Based on our latest discussions (before the awarding Thursday), we will pursue all legal remedies,” Toletino said.

The AFCS aims to provide a “tap and go” system for the Light Rail Transit Lines 1 and 2 and the Metro Rail Transit Line 3 by the third quarter of 2015. The winning bidder will operate the system for a period of 10 years.

The DOTC opened three financial proposals—from AF Consortium, SM Group and Comworks-Berjaya—for the AFCS last Dec. 9 after two other groups—E-Trans Solutions and Megawide-Suyen-Eurolink Consortium—were disqualified during the technical evaluation stage. E-Trans later filed a motion for reconsideration, saying its proposal should be considered.

AF Consortium submitted the best offer via a premium bid of P1,088,103,900 against SM’s premium  bid of P1.088 billion—a difference of P103,900 or 0.01 percent.

The premium will be paid to the government to operate the system over the 10-year concession period.

Comworks-Berjaya had sought a subsidy of P2.05 billion.

The AFCS deal, the second PPP project for Ayala but a first for Metro Pacific, brings to six the number of PPP deals awarded by the Aquino administration.

The other five are the Daang Hari-South Luzon Expressway link road ( Ayala), the Naia Expressway Phase II ( San Miguel), two classroom building projects and the upgrade of the Philippine Orthopedic Center, all bagged by Megawide Construction Corp.