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SMC also wants in on bidding for P60-B LRT extension project

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DIVERSIFYING conglomerate San Miguel Corp. (SMC) also wants to take part in the planned auction for the design and construction of the P60-billion Light Rail Transit Line 1 extension project.

“SMC will join all government bidding to help our country get the best deal,” said SMC President Ramon Ang in a text message when asked if his group was going to bid for the LRT Line1 extension project.

But Ang noted that government has yet to issue the terms of reference (TOR) for the biding. Once the TOR is issued, he said, SMC will take a look at it and make a definite decision.

The southbound extension of LRT 1 would entail adding 11.7 kilometers and eight new stations. The project would also provide for two more stations, a satellite depot and three intermodal facilities.

Transportation Secretary Mar Roxas earlier said the government will bid out the O&M of LRT Line 1 as well as its extension to Bacoor, Cavite, as one contract.

“Whoever wins the construction and design contract for LRT Line 1 extension project will operate the entire 28-kilometer railway line system. It comes with the O&M bid contract,” Roxas said.

Ang previously said his group was also interested in the bidding for the operation and management (O&M) bid contract for the Metro Rail Transit Corp. (MRT) Line 3.

SMC has been vocal about its desire to participate in the government’s public-private partnership (PPP) program. The company is also eyeing the Metro Rail Transit Line 3. It had previously acquired a 51- percent interest in Universal LRT Corp., the proponent for the 21km MRT Line 7 that is estimated to cost $1.2 billion.

SMC, through unit Optimal Infrastructure Development Inc., previously signed up to bid for the operation and
management (O&M) contract of the Metro Rail Transit Line 3. But the Department of Transportation and Communications (DOTC) has yet to declare if it will auction the maintenance aspect of the MRT 3 and not the operation.

Metro Pacific Investments Corp. (MPIC), which has asserted its “legal right” to operate and develop MRT 3, may also bid for the LRT Line extension project.

“MPIC wants to actively participate in the government’s public-private partnership program and this includes, among other things, the proposed bidding for the extension of LRT 1 from Baclaran to Cavite.

To date, however, no definitive decision has been made, considering that the terms of reference for the bidding of the aforementioned project has not been released,” said MPIC in a disclosure to the stock exchange yesterday.

 MPIC Chairman Manuel V. Pangilinan said last Monday night that although “we would be interested, it is difficult to say whether we would be bidding for it. We don’t know terms of reference but we’d be interested in the Light Rail generally.”

 Before Roxas assumed the DOTC portfolio, the government had planned to bid out the O&M of LRT 1 and Metro Rail Transit Line 3 as a package.

 “We envisioned funding for this to come from the private sector. It will be a straight up, design and build construction project,” Roxas said.

 He said the National Economic and Development Authority was scheduled to complete review of the project by the end of the month for endorsement to President Aquino, who chairs the planning agency.

Roxas said a separate project, the extension of LRT 2, would be sent to Neds for review this month. The planning agency will conduct a passenger demand study.

“The Neda is validating the additional market for the LRT 2 if it is extended to Masinag,” the DOTC chief said.

 


 

 


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