April 01, 2014

AC-MPIC consortium wins automated rail ticketing PPP contract

Government yesterday signed a P1.72b contract with AF Consortium, an entity formed by Ayala Corporation (AC) and Metro Pacific Investments Corp (MPIC) groups, to develop and implement an automated fare collection system (AFCS) for the Metro Rail Transit Line 3, and the Light Rail Transit Lines 1 and 2. The awarding was made despite a protest lodged by the SM group, the second highest bidder for the contract. The AFCS project is set to commence operations by September 2015.

Our take: While the AFCS appears to be a small contract in terms of project cost, this offers the members of the winning consortium the room to explore opportunities in retail, banking and mobile operations. This is the sixth contract awarded under the Public Private Partnership (PPP) program of the government. Based on the PPP Center website, there are 52 projects that are supposed to be offered under the PPP program.

Of these, government has estimated the cost for 22 projects but only 12 have been approved for bidding by the National Economic Development Authority. Government has yet to issue a notice of award to the winning bidder of the Mactan-Cebu international airport expansion and modernization while it has yet to bid out the Cavite-Laguna Expressway, LRT 1 Expansion and O&M, and Southwest Integrated Transport terminal projects. – WealthSec