Raising the bar

Many industry and financial observers are keenly watching the new partnership of Ayala Corp. and Metro Pacific Investment Corp. (MPIC), which recently joined forces to bid for the extension of the existing 20.7-km LRT Line 1 system, which runs from Roosevelt Ave in Quezon City to Baclaran in Parañaque, by an additional 11.7 km southwards to Bacoor, Cavite.

It is impressive that two major companies like Ayala Corp. and MPIC have brushed aside their competitive differences, and committed themselves to help the Philippine government raise the bar of service for Metro Manila commuters, primarily because “sila ang tunay na boss ng gobyerno at negosyo sa bansa.”

It shows that both companies are intent on pursuing and developing  light railway transit (LRT) projects in greater Metro Manila, beginning with the ones included in the government’s public-private partnership (PPP) framework, namely the Metro Railway Transit-3 upgrade and rehabilitation, and the LRT-1 extension from Baclaran to Cavite.

It also shows the aggressiveness by which Ayala Corp. and MPIC want to showcase their unique strengths and capabilities that, when combined, create a unique value proposition in rail development.

No less than Transportation and Communications Secretary Mar Roxas has expressed full support for the alliance, explaining that the government welcomes companies with huge capitalization, those which have a good track record of delivering large infrastructure projects, those which clearly have access to the [latest] technology, manpower, management and all the skills necessary to successfully deliver projects.

Because of these positive developments, private sector, including foreign investors, are putting their money where their mouths are to fund vital infrastructure in the country. But they warned the Aquino government to move fast to clear blockages, red tape, and various delays that tend to crop up along the way, and stymie vital projects like these.

Of course, Roxas and the government have good reasons for being cautious and methodical in their approach. They want to separate the charlatans and carpetbaggers out for a quick buck and are willing to pay the obligatory “tongpats”, from the serious players who genuinely want to invest in the country. This is right on track in their crusade towards “Matuwid na Daan”. 

The government wants to avoid, or minimize participation of ‘flippers’ or companies that bid low on a contract,  then sell it to some other groups without the necessary expertise to implement the project. This only delays the project and results in gross inefficiencies in the delivery of the project, a common, if not deliberate, occurrence during the past administration.

Now the ball is in the Aquino government’s court to get the LRT 1 extension and rehab project, and other similar vital infrastructure programs, up and running. The long-suffering Filipino public, and our lagging infrastructure which badly needs upgrading in order to pump-prime our economy (e.g tourism, power, investment, etc.), and help us play catch-up with our ASEAN neighbours, depends on it.

In short, the Aquino government should stop dribbling the ball, and start making the key plays.

For comments, e-mail at [email protected]