DOTC to rebid LRT1 Ext in Q4

MANILA, Philippines - The Department of Transportation and Communications (DOTC) will hold a new bidding for the P60 billion Light Rail Transit line 1 (LRT1) extension project in the fourth quarter of the year after declaring a failed bidding yesterday.

 Transportation Undersecretary Jose Perpetuo Lotilla said in a text message that the joint Bids and Awards committee (BAC) of the DOTC and the Light Rail Transit Authority (LRTA) has issued a resolution declaring the Aug. 15 bidding of the LRT1 Cavite extension project a failure.

Lotilla, who also heads the agency’s BAC, said the rebidding would be conducted in the fourth quarter of the year.  “Most probably in the fourth quarter considering the timing,” he added.

Only one of the four prequalified project submitted conditional technical and financial proposals last Aug. 15. Three bidders–MTD-Samsung Group, San Miguel Infrastructure Resources Inc., and DMCI Holdings Inc.–withdrew from the process due to concerns including on who would shoulder the real estate taxes.

The Light Rail Manila Consortium managed to beat the Aug. 15 deadline and submitted its technical and financial proposals. The consortium is led by First

Pacific’s infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) but its partner Ayala Corp. through AC Infrastructure Holdings Corp. decided not to participate in the bidding.

Transportation Secretary Joseph Emilio Abaya earlier said the government would revise the terms of the LRT1 extension project to address the concerns of prequalified bidders on the viability of the mass transit system.

 â€œThe BAC is looking at the possibility of extending the bidding process and reevaluating the existing terms to further address the commercial issues raised by the pre-qualified bidders,” Abaya stressed.

The DOTC chief pointed out that the primary concern of the government is to make sure that construction works extending LRT1 all the way to Niog in Bacoor, Cavite would start in the second half of the year.

 â€œThe goal of the evaluation and the next step is to ensure that the construction of the LRT1 Cavite extension will proceed in the second half of 2014, as scheduled,” he added.