Saturday, September 13, 2014

LRT-1 South Extension Project

LRT1 Extension to Bacoor, Cavite Project
A southern extension of Line 1, also known as the Southern Extension Project or LRT Line 6 in the Metro Manila Rail Plans, has been proposed and would aim to serve the areas of Parañaque to Cavite. Such an extension would take Quirino Avenue (Road from Parañaque to Bacoor), then would travel on the side of Seaside Drive to the Coastal Road, and from there would travel down the side of Kabihasnan street to Quirino Avenue (again) to its extension, General Emilio Aguinaldo Avenue from the Las Pinas-Bacoor Boundary of Zapote Bridge to Niog. The extension would add 10+8 stations over some 11.7+15 kilometers  of new line and would be the second rail line extending outside the Metro Manila area (after the planned MRT-7 line).

An unsolicited bid to conduct this work from Canada's SNC-Lavalin was rejected by the Philippine government in 2005. In 2006, the government worked with advisers (International Finance Corporation, White & Case, Halcrow and others) to conduct an open-market invitation to tender for the extension and for a 30-year concession to run the extended LRT-1 line. President Gloria Macapagal Arroyo subsequently withdrew the project.

The following stations would proposed to compose the Southern Extension:
  • Redemptorist - Parañaque City
  • Manila International Airport - Parañaque City
  • Asia World - Parañaque City
  • Ninoy Aquino - Parañaque City
  • Dr. Santos - Parañaque City
  • Manuyo Uno - Las Piñas City
  • Las Piñas - Las Piñas City
  • Zapote - Bacoor City
  • Talaba - Bacoor City
  • Niog - Bacoor City
The line would be extended from Parañaque City southwards, connecting Las Piñas City and Bacoor City to the LRT network.

Ten new stations will be constructed after LRT's Line 1 Baclaran Station, enabling the train system to go all the way to Bacoor, Cavite. From Roxas Boulevard, it will also go through the airport area, making it more convenient for travellers to use the LRT to go to NAIA. The coaches will also have provisions for baggage and luggage.

Although two months later as expected, the LRT Line 1 Cavite Extension Project finally got approved by the board of the National Economic and Development Authority (NEDA) together with 11 more projects amounting to a total of PhP133 billion in a meeting held yesterday with President Aquino.

The said project will extend the 20.7 kilometer long LRT Line 1 from the existing Baclaran station all the way down to Bacoor, Cavite. The 11.7 kilometer extension will pass through key areas like Paranaque and Las Piñas City and is expected to add eight more stations plus two provisional station once completed, the proposed stations are: Redemptionist, MIA, Asia World, Ninoy Aquino, Dr. Santos, Manuyo Uno(provisional), Las Piñas, Zapote, Talaba(provisional), and Niyog. Along with the extension, a sattelite depot for maintenance and storage of light train vehicles will be placed at the end of the said line. Several intermodal facilities will also be included in the project.

The $800-million light rail extension project linking Metro Manila and Cavite will be dangled before international investors gathered at roadshow sessions in London, Madrid, Tokyo and Seoul this August, the Department of Transportation and Communications (DOTC) said Tuesday.

Four million residents of Parañaque, Las Piñas and Cavite provinces are expected to be served by the LRT Cavite Extension.

“We want the countries in Europe and Asia to know about this project. How many projects worldwide amount to about $800 million?” DOTC Secretary Mar Roxas said.

He said the P60-billion LRT 1 Extension to Cavite is the largest infrastructure project the Aquino administration will undertake so far.

The DOTC has conducted a pre-qualification bid conference wherein global contractors Marubeni, Sumitomo, Itochu, Mitsubishi, Leighton Contractors, Systa and RATP Dev. were in the same room with local conglomerates San Miguel Infrastucture, First Pacific and Metro Pacific Investments Corp. FF Cruz, DMCI, San Miguel Infrastructure, and Makati Development Corp.

Possible project financiers were also present: the Bank of the Philippine Islands, BDO Universal, the ING bank China Bank and Citibank. The Development Bank of the Philippines hosted the pre-bid conference.

“We are here to ensure a clean, fair, and transparent bidding process. You can now reduce your risk premium for topsy-turvy bidding processes,” Roxas said.

Target time frame for the awarding of the contract is the second quarter of next year.

The DOTC chief said pre-qualification screening processes will be applied to make sure the companies and consortia that will take on the project have the needed financial, technical, and management capacity to get the project done.

Apart from the construction, operation and maintenance of the Cavite Extension line, the DOTC will also bid out the operation and maintenance of the Line 1 that runs from Baclaran to Monumento, which is 20.7 kilometers long.

The Cavite Extension will add 11.7 kilometers, eight to ten stations, and will end in Bacoor, Cavite. Some 10.5 kilometers of the extension line will be elevated tracks.

Roxas said the project will have official development assistance financing amounting to about P30 billion while the remaining P30 billion will be bid out to contractors who will build, operate and maintain the stations, rail tracks, support facilities.

New LRT coaches –39 in all—will be added to the LRT 1 line fleet.

DOTC also said the extension line will also have 10.5 kilometers of viaduct, support beams, and three intermodal facilities. Approximately 10.5 kms of the Cavite Extension System would be elevated and 1.2 kilometers would be at grade level.
The Department of Transportation and Communications has extended by a month the deadline for submission of qualification documents for the P60 billion Light Rail Transit Line 1 Cavite Extension Project auction.

"In response to the request of several prospective bidders for more time to prepare the qualification documents and in light of the recent revisions to the instructions to prospective bidders, the qualification documents submission date is extended to September 28, 2012," the DOTC said in a special bid bulletin.

The original deadline fell on August 22 this year.

Companies that purchased pre-qualification documents include: San Miguel Infra, Macquarie Group, Mitsubishi Corporation, Hanjin Heavy Industries & Construction Co. Ltd., Sumitomo Corporation, Leighton Contractors, Makati Development Corporation, SyCip Salazar Hernandez & Gatmaitan, FSG Capital Inc., EFC Enterprises, D.M. Consunji Inc. and FF Cruz & Co. Inc.

Other firms interested to join the bidding include BPI Capital Corporation, ING Bank, Jorgman Planning & Development Corp., RATP Development, Benchtel Overseas Corporation, SERCO Group, Comm Builders & Technical Philippines Corp., Lenvoisa Construction Inc., APT Global Inc., Tranzen Group, Cathay Energy Service Corp., Marubeni Corporation and SYSTRA Group.

Costing P30 billion, the southbound extension of LRT 1 will increase the train's span from 20.7 kilometers to 32.4 kilometers, with approximately 10.5 kilometers of the extension elevated and 1.2 kilometers at grade. The remaining P30 billion will be used to acquire up to 39 new light rail vehicles to avoid the need for raising fares.

DOTC said more than 500,000 commuters use LRT 1 everyday. At present, the existing line runs from Baclaran in Pasay City to Roosevelt Avenue in Quezon City. The southern part of Metro Manila and neighboring Cavite province is home to nearly four million people.

The DOTC tapped International Finance Corporation and state-owned Development Bank of the Philippines as transaction advisors. The project has five components:
  • Operation and maintenance of the existing system, which includes operation and maintenance of depot, electrical and mechanical system, rolling stock, station, track, and other related assets;
  • Design, procurement, engineering, construction, installation, completion, testing, and commissioning of the Cavite extension facilities;
  • Integration of the existing system and the Cavite Extension System, including train control and signaling, communications, and traction power supply;
  • Operation and maintenance of the integrated system; and
  • System enhancement works covering whole-of-life investments.
President Aquino on Monday, September 23, 2012 laid down the national government’s road and infrastructure projects in Cavite with the appointment of former Cavite district congressman Joseph Emilio A. Abaya to the Department of Transportation and Communications (DOTC).

Speaking in the proclamation rally of the Liberal Party here on Monday, Aquino announced that the National Economic and Development Authority (Neda) has approved the construction of the Light Rail Transit (LRT) line 1 extension to Cavite by January 2014.

“A good news is that the LRT line 1 Cavite extension has already been approved by NEDA. We expect the bidding to close by April 2013 and the construction to begin by January of 2014,” Aquino said in his speech.

With Abaya in the DOTC, Aquino said, “if this will be implemented ahead of schedule, I will never complain.”

Four firms, including the Metro Pacific Investments Corporation (MPIC)-Ayala tandem and San Miguel Corporation, submitted on Monday the required documents that formally marked their entry as bidders for the P60-billion Light Rail Transit (LRT) Line 1 Cavite Extension Project.

The four are Light Rail Manila Consortium of MPIC and Ayala groups, SMC Infra Resources Inc., DMCI Holdings Inc. and MTDC-Samsung Consortium.

The groups submitted the qualification requirements, which will be evaluated by the Special Bids and Awards Committee of the Department of Transportation and Communications (DOTC).

The DOTC did not accept the bids of Ecorail and Luzon Rail Transit System because they submitted their pre-qualification beyond the 2 p.m., deadline.

Luzon Railway Transit System submitted its requirements at 2:20 p.m., or 20 minutes beyond the 2 p.m. deadline. Ecorail, on the other hand, submitted eight out of 10 requirements on time but the remaining two envelopes were submitted after 2 p.m.

“There are very clear provisions in the invitation to prequalify. It’s an all or nothing proposition. We decided not to accept the two bids of Ecorail and Luzon Rail for failure to submit their requirements on time,” said Transportation Undersecretary Jose Perpetuo Lotilla during the opening of the pre-qualification documents.

There were a total of 33 firms that bought the bid documents.

The committee opened the pre-qualification documents submitted by all firms to check whether they have complied with the requirements, which were later resealed. Evaluation will be done by the committee, which could be finished within the next two weeks, said Lotilla.

MPIC is the lead member of the Light Rail Manila Consortium. Its other members are AC Infra Holdings Corporation, Macquarie Infra Holdings (Philippines) Private Limited, Ayala Corporation, Metro Pacific Light Rail Corporation and RATP Development S.A.

Of the four firms, only MTDC-Samsung is led by foreign entities.

MTDC is MTD Capital Berhad of Malaysia, while Samsung is based in South Korea. Its other members include Union Equities Inc., DM Wenceslao & Associates Inc., Primewater Infra Corporation

This railway project will extend the existing 20.7-kilometer (km) LRT Line 1 system, which runs from Roosevelt Avenue in Quezon City to Baclaran in Pasay City, by an additional 11.7 km southward to Bacoor, Cavite.

Once completed, the new line will increase ridership of LRT 1 from 500,000 to 700,000 passengers per day, thus providing faster and a more convenient alternative to residents of Cavite, Las Piñas and Parañaque.


The project cost will be equally split between the private sector and the government, which will spend for the purchase of up to 39 new car train sets and construction of the satellite depot, among others.

The government’s obligation include the turnover of its possession of the existing Line 1 assets for rail operation and maintenance, acquisition and delivery of right of way, implementation of the automated fare collection system (AFCS) project, and ensure the application of periodic fare adjustments.

Meanwhile, the winning bidder will be obligated to finance, design and construct the Cavite extension; undertake immediately the operation and maintenance of existing system, as well as the integrated system upon completion of the extension project; undertake future system maintenance and upgrades; assume ridership risk; receive fare box; and undertake an approved commercial development.

The government will hold another auction for the centralized AFCS. “For the LRT fares, we will move from zone-based fare to boarding plus a distance fare scheme. There will also be periodic fare adjustments over the concession period. But the government will hold a separate bidding for the AFCS. This project shall be tendered parallel to line 1,” according to former Transportation and Communications and now Interior and Local Government Secretary Manuel “Mar” Roxas.

The DOTC has tapped the IFC (International Finance Corporation) as its transaction advisor, which in turn, hired URS and Pinsent Masons as its technical and legal specialists.

President Benigno Aquino III on Thursday, February 7 brought good news to the people of Cavite as he announced that the Light Rail Transit (LRT) Line 1 Cavite Extension will be operational in 2015.

In his speech during the launch of the program "Alay sa Mamamayan" held in Imus City, Cavite, he said the train line will benefit about 250,000 commuters daily.

The LRT Line 1 Cavite Extension Project aims to provide convenience for people living in Cavite and other nearby areas.

The Department of Transportation and Communications (DOTC) is scheduling the bid submission deadline for the P65-billion Light Rail Transit Line-1 (LRT-1) Cavite extension within the second quarter of next year.

The National Economic Develop-ment Authority (NEDA) Board recent approved the terms of the county’s biggest public-private partnership (PPP) project.

“This timeline is meant to foster competitive bids. We believe that the improved terms will attract more players, who will need a reasonable period to study the project and prepare their proposals,” said DOTC spokesperson Michael Arthur Sagcal.

The DOTC also said that, “In order to foster more competitive bids for the Light Rail Transit Line-1 Cavite Extension PPP project [LRT-1 Cavex] the DOTC aims to give roughly four to six months’ time from the start of the bidding process to allow new players to come into the picture.”

The bidding process begins upon the publication of an invitation to bid, which the transport agency will do within December 2013.

The improvements in the terms of the project involve government absorbing the obligation to pay real property taxes (RPT), ensuring the integrity of the facility’s structure for a two-year period, subsidizing unexpected surges in power rates beyond a particular range, permitting a 5-percent fare increase upon completion of the project, and allowing the submission of negative bids.

The NEDA Board’s approval also entailed an increase in the project cost to P64.9 billion due to the addition of several components to the project’s terms.

These new components, which the DOTC originally intended to pursue as separate projects, will now form part of the winning concessionaire’s obligations, making the LRT-1 Cavex bid more robust.

These new components include: some remedial and rehabilitation works for the existing system such as repairing the carriage viaduct; rehabilitating existing trains especially their roofing; and making the LRT-1 system compliant with laws and regulations;

It also includes the installation of equipment which will be part of the common ticketing system called the automatic fare collection system (AFCS), which is being bid out by the DOTC separately, for the Cavite extension portion of LRT-1 only.

The South Extension Project involves the extension of the existing LRT Line-1 South. Currently, Line 1 covers 21 stations from Roosevelt Avenue in Quezon City to Monumento (north link) to Baclaran in Pasay City.

The total length of service line is 20.7 kilometers. The extension project extends the service line by 11.7 kilometers covering 10 more stations that will pass through the cities of Parañaque and Las Piñas up to Bacoor, Cavite.

Other components including contingency costs, on account of the interface risk with related projects such as the AFCS PPP, the construction of the Common Station which will link LRT-1 with Metro Rail Transit (MRT) Lines 3 and 7 in the EDSA-North Avenue area in Quezon City, and the LRT-1 Cavex components procured under the project’s Official Development Assistance portion.

The Department of Transportation and Communications on Monday said it is expediting the bidding of the P65 billion Light Rail Transit Line 1 Cavite Extension project.

"The only delay was in the schedule of the NEDA (National Economic Development Authority) Board meeting. Otherwise, we are still following the same four to six-month timeline from obtaining approval to set the bid submission deadline," DOTC spokesperson Michael Arthur Sagcal said following reports of delay in the project.

He added that the DOTC is facilitating the bidding process of the country's biggest Public Private Partnership project.

"We will adopt the single-stage bidding process, and we will set the bid submission date in the earlier part of second quarter of 2014," Sagcal said.

In a single-stage bidding process, interested groups will submit their qualification documents simultaneously with their technical and financial proposals, instead of having a separate pre-qualification phase.

The process will do away with the two-stage process, effectively cutting the entire period by around two months, Sagcal said.

After the original bid for this project failed last August, the DOTC improved certain economic terms in the concession, which required NEDA Board approval.

These improvements include a provision that would oblige the government to pay real property taxes, ensuring the integrity of the facility’s structure for a two-year period, permitting a five-percent fare increase upon completion of the project, and allowing the submission of negative bids.

The NEDA Board approved the improvements in the terms of the project last November 21.

The LRT-1 Cavex project retains the major components of the original scope of works, such as the operation and maintenance of the entire LRT-1 system for a 32-year concession period, and the construction of an 11.7-kilometer southward extension from the Baclaran station to Bacoor, Cavite.

It entails the construction of eight new stations, plus two future stations, in Parañaque City, Las Piñas City, and the province of Cavite, which would open up access to education and employment opportunities in Metro Manila to a total of around four million people who live in the area, the DOTC said.

Based on the Build-Operate-and Transfer law, the DOTC will publish its invitation to bid for the improved LRT-1 Cavex project for three consecutive weeks this December, beginning tomorrow, December 3.

The government has approved a P6-billion viability gap funding (VGF) for the Light Rail Transit (LRT) Line 1 Cavite Extension project, the country’s largest railway public-private partnership (PPP) project, the Department of Transportation and Communications (DOTC) announced.

In a bid bulletin issued on February 10, Jose Perpetuo Lotilla, chairman of the Bids and Awards Committee of the DOTC, said “pursuant to the Neda [National Economic and Development Authority] Board approval obtained on November 21, 2013, the LRT Line 1 Cavite Extension project has received approval for a VGF in the amount of approximately P6 billion.”

A VGF in a PPP project means the government would fund the gap and give the money to the concessionaire, Lotilla said, when sought for comment.

“VGF actually means subsidy. It means that standing alone and without external subsidy or funding assistance, the project is not viable as a purely commercial concern. That is why it’s called VGF. There is a financial gap, which is filled in by external funding because the project revenue is not enough,” added Lotilla, who is also the agency’s undersecretary for legal affairs.

The deadline for the submission of bids has been set for April 28. The bidders are DMCI Holdings Inc., Light Rail Manila (LRM) Consortium, MTD Philippines Inc., SMC Infra Resources Inc., Globalvia Inversiones of Spain, Megawide Construction Corp. and Ecorail Services Inc.

The DOTC has set a second round of one-on-one meetings with the bidders starting with SMC and Globalvia on March 3; LRM and Megawide on March 4; MTD Philippines and DMCI on March 5; and Ecorail on March 6. Last month the DOTC said it was nearing the completion of the right-of-way (ROW) acquisition for the P64.9-billion LRT Line 1 Cavite Extension Project. It has so far completed 92.34 percent of the ROW acquisition requirement for the Baclaran-Dr. Santos segment; 69.2 percent of the Dr. Santos-Zapote segment; and 84.2 percent of the Zapote-Niog segment.

The Department of Transportation and Communications (DOTC) has decided to bundle the design of the proposed Metro Rail Transit - Light Rail Transit (MRT-LRT) common station to the rebidding of the P65-billion LRT line 1 Cavite extension project next month.

DOTC undersecretary Jose Perpetuo Lotilla said the winning concessionaire of the public private partnership (PPP) project would also get the right to design the common station.

“They will be allowed to present their plans because they want to design the common station,” Lotilla said.

The DOTC has decided to extend the deadline for the submission of bids for the P65 billion LRT1 Cavite extension project by another month to May 28 instead of April 28.

The groups interested in joining the bidding include the tandem of infrastructure giant Metro Pacific Investments Corporation and conglomerate Ayala Corporation through the Light Rail Manila Consortium, construction giant DM Consunji Inc., Filipino-owned Megawide Construction Corporation, Spanish-owned Globalvia Inversiones SAU, SMC Infra Resources Inc. of diversified conglomerate San Miguel Corporation, Eco Rail Services Inc. of businessman Reghis Romero II, and Malaysian-owned MTD Philippines Inc.

Lotilla clarified that the government would have to bid out a separate contract for the construction of the proposed P1.4 billion common station.

“We have to bid out the contract for the construction because the government will shoulder the construction costs,” he added.

It would be recalled that the DOTC and the Light Rail Transit Authority (LRTA) declared a failed bidding after only one of the four prequalified bidders - Light Rail Manila Consortium - submitted a bid last Aug. 15 while other major proponents backed out due to concerns about the viability of the project.

DOTC undersecretary Rene Limcaoco earlier said the agency is set to issue a bulletin naming the Trinoma Mall owned by property giant Ayala Land Inc. in Quezon City instead of the SM North Edsa as the site of the proposed common station.

Limcaoco said the government could save as much as P1 billion if the MRT-LRT common station is constructed near the Trinoma Mall instead of the earlier planned SM City North Edsa.

The DOTC originally picked SM North EDSA as the site of the proposed common station but later revised the plan and transferred the site near the Trinoma Mall.

Mall giant SM Prime Holdings Inc. of retail magnate Henry Sy already paid P200 million to state-run Light Rail Transit Authority (LRTA) for the naming rights of the common station.

SM Prime could keep its naming rights despite the transfer of the station to Trinoma.

The Light Rail Manila Consortium's lone bid of P9.35 billion ($213.15 million) to undertake the Light Rail Transit Line 1 (LRT-1) Cavite extension project was approved Thursday, June 19 by the National Economic and Development Authority (NEDA) Board, chaired by President Benigno “Noynoy” Aquino III.

Light Rail Manila is led by Metro Pacific Investments Corporation (MPIC), with a 55% stake, and Ayala Corporation, with 35%. Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. holds the remaining 10%.

The Cavite extension project will increase the span of Line 1 from 20.7 km to 32.4 km with a new south endpoint in Niog, Bacoor, Cavite. Approximately 10.5 km of the Cavite Extension System would be elevated and 1.2 km would be at grade level. The extension would serve nearly 4 million residents of Parañaque, Las Piñas, and Cavite.

The construction of the tracks, the stations and all its attendant facilities, operation and maintenance worth about P30 billion ($683.91 million) comprised the contract bid out by government. The other half of the P65-billion project ($1.48 billion), covering the purchase of the coaches, will be funded by the government through official development assistance.

Approved in November 23, 2013, the LRT 1 Cavite extension project will provide focal points for transit-oriented development in the area and spur economic activity along its alignment such as the reclamation area facing Manila Bay, the NEDA Board said.

“The project will improve access to central Manila through providing off-street public transport connections to the rapidly growing southern portion of Metro Manila and the province of Cavite,” the Board said in a statement.
THE TRANSPORTATION department is looking at awarding the P65-billion Light Rail Transit Line 1 (LRT-1) Cavite Extension project to the sole bidder as early as this week, with its legal team intent on ironing out potential issues with guidance from the government’s chief counsel, a Cabinet official said.

Department of Transportation and Communications (DoTC) Secretary Joseph Emilio A. Abaya yesterday said that his agency is just awaiting the opinion of the Office of the Solicitor General on whether or not the government could grant the contract for the project to its lone bidder -- the Light Rail Manila Consortium -- despite the pending temporary restraining order (TRO) on the location transfer of the planned P1.4-billion LRT-Metro Rail Transit (LRT-MRT) common station project.

The LRT-1 extension project -- the DoTC’s biggest public-private partnership (PPP) deal to date -- is bundled with the preliminary design of the halted proposed common station, hence the agency’s inability to sign the deal.

The planned common station, once completed, will connect the LRT-1, MRT-3, as well as the proposed MRT-7, a 14-station railway between EDSA corner North Avenue, Quezon City and Araneta-Colinas Verdes Subdivision, San Jose del Monte, Bulacan.

“We are waiting for the opinion of the Office of the Solicitor General... finalizing all the loopholes," Mr. Abaya told reporters at the sidelines of a briefing in Mandaluyong City yesterday.

“Hopefully, we could get it (the opinion) within the week and award,” he said.

“This could mean we have an avenue to award the LRT-1 PPP [project]because we don’t have a restraint on awarding it,” Mr. Abaya added.

The Transportation chief last week said that his agency is expediting the awarding of the LRT-1 deal but is still clarifying and studying the concerns of all stakeholders.

The Light Rail Manila Consortium, led by Metro Pacific Investment Corp. (MPIC) and Ayala Corp., was the sole bidder for the LRT-1 extension project that was auctioned off by the government in late May. It offered to build, operate, and manage the railway system by paying the government a P9.35-billion premium on top of the project cost.

After weighing the legal implications for weeks, LRT-1 Cavite extension PPP was awarded to the Light Rail Manila Consortium, said Michael Sagcal in a text message.

The project, which will link Metro Manila and Cavite province via an elevated train, went through two biddings, said Sagcal.

A Light Rail Manila source privy to the negotiations confirmed the awarding of the project to the Manuel V. Pangilinan-led Metro Pacific Investments Corporation and Ayala Corporation.

The decision marks the 8th and largest PPP deal to be awarded by President Benigno Aquino III, whose administration has been working to bolster infrastructure investments under a keystone PPP Program to support gains in the broader economy.

It is also the third to be won by Ayala, which bagged the government’s first PPP, the 4-kilometer Daang-Hari South Luzon Express Link Road, and the second PPP project of Metro Pacific.

Sagcal said Light Rail Manila Consortium has 20 days to comply with the post award requirements, after which a concession agreement can be signed.

With the awarding of the project, this means that the legal challenges the DOTC had been worried about had been cleared.

Light Rail Manila had been poised to win the LRT-1 PPP deal in late July before the SM Investments Corporation obtained a Supreme Court of the Philippines order temporarily halting the transfer of the location of a common station mentioned on the PPP contract.

SM Prime Holdings said it was not interested in stopping the PPP process, as it was only protecting its interests based on a 2009 agreement. Nevertheless, DOTC took a step back and decided to review whether it could award the project despite a temporary restraining order (TRO).

The Light Rail Manila can now start the process that will allow the construction of a new 11.7-kilometer extension of the LRT-1, currently one of Metro Manila’s busiest railway lines serving about half a million people daily.

Light Rail Manila, under the PPP deal, will also operate the entire LRT-1 line for a period of 32 years.

The Ayala-Metro Pacific group is set to sign on Thursday the 32-year contract for the P64.9 billion LRT1 Cavite Extension Project.

"We're about to sign the PPP contract for LRT Line 1," Transport Secretary Joseph Emilio Abaya told reporters on the sidelines of the Philippine Economic Briefing today.

Melody M. Del Rosario, vice president for corporate communications of Metro Pacific Investments Corp (MPIC) confirmed that the signing of the concession agreement is set on Thursday at Edsa Shangrila.

Last September 12, the Department of Transportation and Communications (DOTC) awarded the LRT1 Cavite Extension Project to Light Rail Manila Consortium despite a Supreme Court stay order on the common station design component of the project.
LRT1 Extension to Dasmariñas, Cavite Project
Project Background

  • The Manila Light Rail Transit Number 1 (LRT Line 1) is the oldest of the three existing lines in Metro Manila. It facilitates over 500,000 person/trips per day over its twenty (20) kilometer network. The current network extends from Baclaran, Pasay City in the south to Roosevelt Avenue, Quezon City in the north (with 20 stations).
  • The first extension project for the LRT 1 is the LRT 1 Cavite Extension and Operation and Maintenance (O&M) Project (the LRT1 Cavite Extension Project). This project will bring a private operator for the system who will undertake operations and maintenance for the entire LRT-1 line plus this planned extension. 
  • The operator will take over operation early in the project implementation, and the extension will be built concurrently. The proposed extension is 11.7 km, running from Baclaran station in Pasay City on the existing LRT1 line to Niyog, Bacoor, Cavite.
  • The LRT 1 Extension to Dasmariñas, Cavite Project (LRT 1 Dasma Project) will provide a second southward extension to the existing LRT 1 urban rail line.
  • The second extension (and the subject of this project) is the LRT 1 Extension to Dasmariñas Cavite, which will run from the terminus of the LRT 1 Cavex Project (Niyog) southwards to Dasmariñas City. This extension is approximately fifteen (15) kilometer long and is expected to have six to eight stations.
  • The objectives of the LRT 1 Dasma project are: 
    • enhancing Metro Manila and Cavite regions’ competitiveness
    • spur economic development along the extension corridor.
Location
Cavite is currently experiencing rapid growth of its residential areas. A huge number of Cavite residents travel to Manila for their work. The trip can take 1.5 hours by bus. In addition, there are several educational facilities (including one university) in Dasmariñas City. The LRT 1 Dasmariñas Extension will reduce travel time to these destinations, thus increasing mobility and economic!competitiveness for the residents of Cavite.
Alignment selection, feasibility analysis and PPP structuring for the project is currently underway. While the alignment has not yet been chosen, it will likely utilize the ROW of either General Aguinaldo Highway. Along with area residents who would be within proximity of the stations. It should be noted that Aguinaldo Highway is also a transit corridor for commuters both south and west of the catchment area; these commuters will also be considered as part of the ridership development.

DESCRIPTION/PARTICULARS:

Construction of approximately 11.7-kilometers railway line from its tie in point at the terminus of LRT Line 1 at the Baclaran Terminal, Pasay City to Niyog Station at Bacoor, Cavite; approximately 10.5 kilometers will be elevated & 1.2 kilometers will be at grade.
  • Construction of eight (8) stations with provision of two (2) additional stations & satellite office and depot at the south end of the line. 
  • Installation of inter-modal facilities at high-demand stations, namely Niyog, Zapote, and Dr. Santos Stations. 
  • Supply and installation of 120 light rail vehicles (30 trains)* 
  • Operations and Maintenance of the integrated line by the concessionaire with systems enhancement works throughout the concession period. 
  • Expansion of existing depot in Pasay to accommodate new fleet that need to be added to the system with expanded services.

PROJECT SCOPE/COMPONENTS 

  • Civil Works Components
    • Construction of the south extension of LRT Line 1, including eight (8) passenger stations with provision for two (2) additional stations; 
    • Development of one (1) satellite office and railway depot; 
    • Expansion of existing railway depot in Pasay; and 
    • Development of three (3) intermodal facilities.
  • Electro-mechanical (E&M) Works
    • Train control, signalling and communications;
    • Traction power and other miscellaneous systems.
  • Rolling Stock
    • Rehabilitation/refurbishment of existing 52 light rail vehicles (LRVs);
    • Procurement of additional 120 LRVs (30 four-car trains).
  • Operation and Maintenance (O&M)
    • O&M of Existing LRT Line 1 upon contract award; and 
    • Subsequent O&M of the integrated LRT Line 1 system.
  • Consultancy Services for the Rolling Stocks, Depot Construction/Expansion, EMS & Civil Works.
    • ROW and preparatory works
Note: * Based on Minutes of Discussion dated August 17, 2012
PPP CONCESSION STRUCTURE:
  • Legal Framework: Philippine BOT Law and its IRR
    • Build-Transfer-Operate (BTO) variant under the BOT Law
  • Counterparties to the Concession
    • Contracting Party: Philippine Government represented by DOTC and LRTA
    • Contracted Party: Concessionaire Company 
References:

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