DOTC turning over LRT-1 operations to MPIC-Ayala consortium this month

MANILA, Philippines - The Department of Transportation and Communications (DOTC) intends to turn over the operations and maintenance (O&M) of the Light Rail Transit Line 1 (LRT-1) to private  concessionaire Light Rail Manila Consortium (LRMC) at the earliest, within the month.

DOTC Secretary Joseph Abaya said the agency is looking to transfer the O&M of the LRT-1 “this month or at the latest next month.”

“I think there is mutual interest that they assume earlier which is this month hopefully. We’re working on this month,” he said.

The LRMC composed of Metro Pacific Investments Corp, Ayala Corp. and Macquarie Infrastructure Holdings (Philippines) Pte Ltd., earlier made a request to the DOTC to takeover the LRT-1 which spans Roosevelt station in Quezon City until Baclaran station in Pasay City, by Sept. 5.

LRMC won the P65-billion LRT-1 Cavite Extension project under the public private artnership scheme.

Under the contract, LRMC will be responsible for the O&M of the LRT-1 under a 32-year cooperation period with the government.

LRMC will also deliver the construction of the 11.7-kilometer extension of the LRT-1 until Niog in Bacoor, Cavite.

LRMC has committed to invest P35 billion for the project which is expected to help ease the worsening traffic in the Parañaque-Las Piñas-Cavite corridor.

The consortium has forged partnerships with three leading French companies to deliver a world-class rail transit system.

Abaya said the DOTC wants to ensure a smooth transition for the O&M of the LRT-1 as there were issues on the procurement of the independent consultant for the project after having two failed bids earlier.

He said the issuance of award to the independent consultant is being processed now.

“We’re just making sure everything is smooth on the turnover,” he said.