Conglomerates vie for LRT-2 deal

MANILA, Philippines–Local and foreign conglomerates are expected to submit documents today signifying their interest in the Light Rail Transit Line 2 long-term operations and maintenance contract, the  government’s second railway public-private partnership (PPP) deal on offer.

Michael Sagcal, spokesperson of the Department of Transportation and Communications, said the submission and opening of qualification documents for the LRT-2 deal, the smallest and newest of three overhead railways in Metro Manila, would push through today.

The qualification process is meant to determine which groups will be allowed to submit technical and financial offers. The deadline was pushed back from last month after several bidders sought more time.

The bidding process for the 10-year operations and maintenance contract, extendable by five years, is likely to draw the participation of frequent PPP participants, based on companies that bought bid documents earlier.

These include San Miguel Corp., the Ty family’s GT Capital Holdings Inc., D.M Cosunji Inc., Aboitiz Equity Ventures Inc. and Light Rail Manila Consortium, a venture between Ayala Corp. and Metro Pacific Investments Corp. that already won the P65-billion LRT-1 Cavite extension PPP in 2014.

Foreign companies that bought bid documents include France’s RATP Group, Spain’s Globalvia and Japan’s Marubeni Corp., Sagcal said.

At stake is the chance to operate the existing 13.8-kilometer LRT-2 line from Recto Avenue to the Depot on Santolan Street along Marcos Highway.

The railway line handled almost 200,000 people a day in 2014, latest data from the Light Rail Transit Authority showed.

The DOTC will separately build a 4.19-km “East extension”, or from Santolan to the Masinag market in Antipolo City along Marcos Highway.

The DOTC said construction would be completed “by the end of 2016” and would be turned over to the LRT-2  concessionaire.

“This project would enhance the Metro Manila and Antipolo regions’ competitiveness and quality of life, fostering sustainable, transit-oriented development in Metro Manila and the surrounding provinces,” it added.

The department said other extension projects for the LRT system were being studied, including the viability of a so-called West extension to the Divisoria area of Manila.

The  LRT-2 line started commercial operations in 2003.