Foreign traders push LRT extension to Cavite

The Joint Foreign Chambers (JFC) of the Philippines has asked the government to immediately implement the Light Rail Transit Authority 1 South Extension Project through an international competitive bidding in order to help business in the Cavite area.

In a letter addressed to Department of Transportation and Communications (DOTC) Secretary Leandro Mendoza, the JFC said the foreign community is expecting the immediate implementation of project after it was highlighted during the recent mid-year economic briefing.

In fact, the JFC said it has already received several inquiries from investment banks, project development firms and equipment providers regarding the flagship project.

“First, the LRTA 1 South Extension Project is an essential mass transit project needed if economic growth and job creation is to continue in Cavite, one of the fastest growing provinces in the country,” the JFC letter stated.

“Because roads in Cavite already bear a heavy burden of motorized traffic, commuters will benefit greatly if LRT public transportation is extended to the south,” the group added.

The JFC said many American, European, Japanese, and Korean factories are located at the industrial estates in Cavite and in nearby Laguna province and the project will cut the long travel time.

“Second, this project was conceived and has been under discussion for over a decade. Although the last two administrations were unable to implement it, the time is right for the Macapagal-Arroyo administration to do so, as part of the strong emphasis of the DOTC on modernizing and expanding rail transportation under your leadership.”

The group also cited a proposal from the World Bank has been approved by the LRTA board which incorporates important lessons from previously-implemented rail projects, whether ODA or privately financed, in different countries.

They said the project is one of the very few proposed build-operate-transfer (BOT) projects in the country that is well-prepared and provides for a sound, balanced partnership between the private and public sectors.

With regards to public bidding, the JFC said it will facilitate a healthy, competitive process and will lower the cost of the project for government. This reduces opportunities for corruption and helps the country get the best project at the best price, it added.

It cited that a successfully tendered large-scale multi-billion dollar infrastructure project will send a strong and unequivocal signal to the international and Filipino business community that the Philippine Government can undertake a model PPP/BOT transportation project.

“This is a unique opportunity to pursue internationally-accepted principles to demonstrate the government’s ability to follow competitive, transparent, and predictable processes in promoting PPP/BOTs for major infrastructure projects,” the JFC said.

The group also noted that the corruption ranking of the Philippines has recently rose primarily because of perceptions caused by the intense controversy over a supplier-driven communications project.

“Another controversial project could further damage the country’s rankings, while a properly-bid project could raise them.”