Government gives go-signal for P8.5-B LRT-1 expansion project

It’s all systems go for the planned construction of the P8.5-billion ($156.2 million) Light Rail Transit-1 expansion project as the government has given the winning bidder the go-signal to start the project.

The expansion project, one of the top projects of the Light Rail Transit Authority (LRTA), forms part of President Arroyo’s 10-point priority national agenda.

LRTA administrator Mel Robles has issued the notice to proceed to the winning bidder, the Sumitomo-Itochu joint venture, last March 15.

Sumitomo-Itochu had been given 15 days to start the refurbishment of the 25-year old LRT-1. The expansion is a pre-condition to the construction of the South Line extension from the Baclaran station to Bacoor, Cavite.

The project involves the acquisition of 12 new four-car trains and the installation of air-conditioning to non-airconditioned vehicles to better serve the commuting public. The 16-kilometerLRT-1 is the first mass transit in the country, which runs from Baclaran in Parañaque to Monumento in Baclaran.

Funding for the project will come from the Japan Bank for International Cooperation (JBIC) which extended a 40-year soft loan to the Philippine government. The JBIC loan has a concessional rate of 0.75 percent per annum, plus a 10 percent grace period.

Aside from reducing traffic congestion on the roads, the project is expected to result in less air pollution, cleaner environment, and considerable savings in travel time for students, workers, and business people, which, in turn, will bring about greater economic benefits and higher quality of life for Filipinos.

The Japanese government’s assistance is in line with the Philippine Medium Term Development Plan which seeks to accelerate infrastructure development. With the continued growth of highly urbanized areas in Metro Manila, mass transit systems will likely serve as the central mode of transportation for the entire metropolitan area.

The delay in the implementation of the project was due to lack of funds and Congressional hearings questioning the regularity of the bidding process.