MPIC-Ayala allots P35 B for LRT 1 Ext

MANILA, Philippines - The tandem of infrastructure giant Metro Pacific Investments Corp. (MPIC) and conglomerate Ayala Corp. has committed to invest P35 billion to undertake the largest public private partnership (PPP) project awarded so far by the Aquino administration.

The Department of Transportation and Communications (DOTC) officially awarded the 32-year concession for the P65-billion Light Rail Transit line 1 (LRT-1) Cavite Extension project to the Light Rail Manila Consortium (LRMC) last Friday.

In a statement, LRMC said it would invest P35 billion to create a convenient, safe, and efficient train system that offers a long-term solution to the worsening traffic conditions in the Paranaque-Las Pinas-Cavite corridor.

It added that the extended rail line would also generate economic benefits in these areas as it opens opportunities for commercial development around the rail stations.

MPIC through MPIC Light Rail Corp. is the lead member of LRMC with 55 percent followed by Ayala’s AC Infrastructure Holdings Corp. with 35 percent and Macquarie Infrastructure Holdings (Philippines) Inc. with 10 percent.

Its partners include Bouygues Travaux Publics, Alstom Transport Pte Ltd., RATP Dev., and MTR Corp. of Hong Kong.

MPIC chairman Manuel V. Pangilinan said the partnership with the government is expected to benefit nearly 500,000 Metro Manila commuters that ride LRT-1 daily.

He said LRMC commends the open and transparent bidding process adopted by the government in selecting and awarding the contract “to us based on our technical and financial strengths in building a highly advanced and modern rail system that would be at par with train systems globally and our neighbours in the region.”

“Through this extension project, MPIC as the lead proponent will ensure the completion of the project and shall continue to help the government in its nation-building efforts by improving transportation means that would spur economic growth and create job opportunities,“ he said.

Pangilinan said that the consortium is committed to providing the public convenient, reliable and safe train service and will work with one of its pre-qualified international rail system operators which has solid experience in developing and operating modern and efficient mass rail transit.

“We envision a state-of-the-art train system that will bring a different rail experience to our commuters, including the introduction of an Automated Fare Collection System in the 11.7 kilometer Cavite Extension that will improve passenger comfort and convenience by cutting queuing time, and allowing seamless transfers from one rail line to another,” he said.

Ayala Corp. chairman Jaime Augusto Zobel de Ayala said the consortium is excited to proceed with the project together with the partners.

“We share a common vision to create a highly efficient rail transport system that is safe and convenient for all the daily commuters of the rail line. Above anything else the riding experience and comfort of the commuters are our prime concern as we build a world-class rail transit system,” Zobel said.

He pointed out that the resources being put together by the group for the rail system attest to the group’s serious commitment to provide a holistic, long-term solution to the transport challenges the country is facing today.