December 10, 2013

AC-MPI consortium submits best bid for PPP railway ticketing project

AF Consortium, the consortium formed by the Ayala and First Pacific groups, submitted the highest financial bid for the automatic fare collection system (AFCS) contract for the country’s Light Rail Transit (LRT) and Metro Rail Transit (MRT) networks. It offered a negative financial bid of P1,088,103,900 vs. the P1,088,000,000 next best offer of the SM Consortium.

The Department of Transportation and Communications set a bid floor of P1.72b. The DOTC will now evaluate further the financial bid with a view of finalizing the decision by 24 Dec 2013 and awarding the contract by the first week of January next year. AF consortium is composed of BPI Card Finance Corp, Globe Telecom (GLO, Buy), Metro Pacific Investments Corp (MPI, Hold), Smart Communications and MeralcoFinServe.

Our take: Members of the AF consortium is looking beyond just the rail ticketing application of the AFCS platform but will expand this to cover bus, toll roads and other rail systems in the country. It is also considering retail and finance transactions that should could provide synergy and enhance the efficiencies of the banking, retail and telecommunications operations of both Ayala Corp (AC, Buy) and MPI. - WealthSec