Bidder for LRT-MRT single ticketing system seeking transparency

MANILA, Philippines—E-Trans Solutions Joint Venture Inc. (E-Trans), a bidder for the Automated Fare Collection System (AFCS) project of the Department of Transportation and Communications (DOTC), is asking the agency to open its financial proposal for the LRT-MRT single-ticketing system.

E-Trans made the request in the wake of the DOTC’s announcement that it would consider only the bids of the SM group and the AF consortia, which submitted bids of P1.088 billion and P1.0881 billion, respectively.

“E-Trans feels that the DOTC’s consideration of only these two bidders withholds crucial information from taxpayers and the intended beneficiaries of the AFCS—the one million commuters who use the system every day,” said Conrad Tolentino, lawyer for the E-Trans consortium.

DOTC did not open E-Trans’ financial bid after the department rated its technical proposal as failed in an evaluation process that E-Trans is questioning due to the lack of procedural transparency.

The AFCS project seeks to have a single ticketing system for all light rail systems (LRT and MRT). The AFCS consists of a contactless smart card (similar to Hong Kong’s Octopus Card) that can be tapped onto entry and exit gates at LRT/MRT stations; the corresponding fare is then deducted from the card.

The winning bidder will supply contactless smart cards to the LRT/MRT operators, supply, install and maintain equipment that will “read” the cards and operate and maintain the clearinghouse for all AFCS transactions.

According to Tolentino, E-Trans raised with the Bids and Awards Committee its concerns over the application of unwritten rules in DOTC’s assessment of technical qualifications, as well as the waiving of other rules that resulted in the qualification of the final two bidders. The opacity of procedures left unopened E-Trans’ financial proposal, which the consortium believes will positively impact the project’s financial and operational sustainability, he said.

“Such opacity begs the question as to whether artificial barriers to entry were placed on small but dynamic new players to benefit the usual big fish,” Tolentino added.

The SM consortium is composed of several companies owned by the Sy family while the AF Consortium is led by Ayala Corp. and Metro Pacific Investments Corp.

E-Trans is a consortium of information technology and financial companies, and is a partner of Kentkart, a leading provider of AFCS services in countries across Europe and the Middle East.