Senate to probe new LRT project

MANILA, Philippines - Senators will study allegations that the Light Rail Transit 1-South Extension Project was overpriced and awarded to a Chinese firm without public bidding.

Sen. Richard Gordon, chairman of the Senate Blue Ribbon committee, said yesterday he would “check and study” reports that there were irregularities in the project.

Sen. Benigno Aquino III said he received information that the LRT 1 extension project was laden with problems, but they have to validate the data.

“We got some tips about certain aspects of it but we haven’t seen the contracts. Without securing documents, we cannot make conclusions at this point. We have to look into the specifications,” he said.

Aquino said they would actually check on the LRT 1-North Extension Project, aside from the LRT 1-South Extension Project. 

The Department of Transportation and Communications (DOTC) announced the award of the 11.7-kilometer LRT-1 South Extension Project to a Chinese state firm.

STAR columnist Jarius Bondoc earlier said LRT Authority (LRTA) officials originally had budgeted only $683 million, or P32.1 billion at an exchange rate of P47: $1 for the project but “when the China Shanghai (Group) Corp. came in, the rate inexplicably zoomed more than two-and-a-half times to $1.78 billion (P83.66 billion).”

“At $152 million (P7.15 billion) per kilometer, LRT-1 will beat Northrail as the world’s dearest,” Bondoc said, referring to the Northrail project that was allegedly overpriced.

“Again there was no public bidding, only closed-door negotiations at DOTC and lobbying at NEDA (National Economic Development Authority. Again too RP (Philippines) is to borrow construction funds from China EximBank. DOTC Undersecretary Guilling Mamon-diong was silent on whether they will bother to secure Monetary Board assent. He only said in recent press releases that they would soon sign the contract,” Bondoc said.

Election laws in the country bar the government from awarding contracts during the election period, which began last Jan. 10 and ends on June 10.

“Along with the ban on hiring, firing and transferring government personnel, the contracting ban is to prevent election kickbacks. Sitting elective officials are also divested of undue advantage. Violation of the laws would mean disqualification from the campaign, removal from office, and imprisonment of up to six years,” Bondoc said.

The DOTC said the project is aboveboard.

The LRTA said the LRT 1-South Extension Project to Cavite province rose by more than threefold, from $683 million to $1.78 billion because “the revised project cost includes the light rail vehicle (LRV) requirements on account of the Line 1-North Extension Project and the system enhancement works of the entire line during the 40-year concession period.”

The LRTA also recommended to the NEDA the adoption of official development assistance (ODA) as the financing scheme for the implementation of the Cavite extension project.

The LRT 1- South Extension Project aims to extend the existing 15 kilometers LRT Line 1 System southward by an additional 11.7 kilometers, of which about 10.5 kilometers will be elevated and 1.2 kilometers will be at-grade.

The extension will start from the existing line’s last station at Baclaran and will traverse the cities of Parañaque and Las Piñas in Metro Manila and reach the municipality of Bacoor in Cavite.