December 02, 2013

Government streamlines LRT1 Extension bid rules

The Department of Transportation and Communications is adopting a single-stage bidding to expedite the auction for the P64.9b LRT 1 Cavite Extension Project. News website quoted the spokesperson of the DOTC as saying the agency is set to issue today the invitation for the auction which calls for interested parties to submit both technical and financial proposals simultaneously. Government is effectively doing away with the usual pre-qualification phase thereby cutting the bidding process by around two months. The bidding is set for the early 2Q14.

Our Take: We view this move positively in light of the repeated delays that have hounded the auctions of PPP projects. An expedited implementation of government’s flagship infrastructure program should help stem the negative sentiment and disappointment on the much-delayed PPP implementation. Among those which earlier expressed interest in the LRT1 extension project are Light Rail Manila Consortium (of Metro Pacific Investments Corp and Ayala Corp), SMC Infra Resources Inc, DMCI Holdings Inc and MTD-Samsung Consortium.– WealthSec