Gov’t starts bidding process for P30B LRT 1 extension deal

The project extending the LRT Line 1 to Cavite province makes a forward stride with the publication Monday, June 4, 2012, of the invitation to interested parties to prequalify to bid for the P30-billion contract.

The process to find the private contractor for the biggest project in the government’s pipeline has finally begun, as the Aquino administration tries to live up to expectations of faster growth and lower poverty through higher infrastructure spending.

The Department of Transportation and Communications (DoTC) on Monday published its invitation for interested parties to prequalify to bid for the P30-billion Light Rail Transit (LRT) Line 1 Extension contract. The project aims to extend the 21-kilometer Roosevelt-to-Baclaran line by 12 more kilometers to Cavite.

The contract to be bid out will have four components: the operations and maintenance of the existing line; design and construction of the new viaducts and stations for the extension; the integration of the existing system with the new section, operation and maintenance of the integrated line; and system enhancement works covering “whole-of-life investments” for the integrated system.

The five components to be handled by the private sector will cost P30 billion. This excludes the acquisition of electromechanical components such as train tracks, power supply units and new coaches to accommodate the expected increase in traffic. This part of the project—worth another P30 billion—will be handled by the government.

“The project will be awarded through a competitive bidding following the procurement rules and procedures prescribed under the Philippine BOT (build-operate-transfer) law,” the DoTC said.

The department, led by former Senator Mar Roxas, has appointed International Finance Corp.—the World Bank’s private sector investment arm—and state-run Development Bank of the Philippines (DBP) as its advisers for the transaction.

The existing line from Baclaran to Roosevelt serves an average of 488,000 passengers per day. The highest passenger traffic on record was 659,000 passengers.

Interested parties were given until August 22 to secure bid documents from the DoTC. Both local and foreign groups are welcomed to join.