May 28, 2014

MPI-led group submits sole bid for LRT1 PPP project

Out of seven groups that signified interest for the LRT 1-Cavite Extension project under the Public Private Partnership (PPP) program, only the Light Rail Manila Consortium submitted a bid for the contract. Light Rail Manila Consortium which is composed of Metro Pacific Investments Corp (55%), AC Infrastructure Holdings Corp (35%) and Macquarie Infrastructure Holdings Phils Pte Ltd (10%).

Details of the bid were not disclosed but government earlier estimated the cost of the project at P64.9b.Bidding rules allow the process to proceed even with a single bidder. Government will now evaluate the bid with a view of making a decision by next month.

 Our take: If the group can clinch this contract, it will be the second PPP deal won by MPI (the first being the automated ticketing system which it won with the Ayala group) and third for the Ayala group (including the Daang Hari toll road).

This bodes well for both groups given the positive synergies with the earlier automated ticketing contract that they won. AC’s property arm Ayala Land Inc can also explore possible opportunities for real estate development especially those pertaining to retail operations. – WealthSec