AYALA Land Inc. (ALI) said it will use a combination of debt and equity to fund construction of the Integrated Transport System (ITS) South Terminal under the government’s public-private partnership (PPP) scheme, a ranking ALI official said Tuesday.
“We will fund the project through a combination of debt and equity.” ALI’s assistant vice president Alfonso Reyes told The Manila Times in an e-mail.
Last Friday, ALI received the Notice of Award (NOA) to build the project from the Department of Transportation and Communications (DOTC) after it presented the lowest annual grantor payment of P277.8 million.
The original cost to construct the ITS South Terminal was set at P4 billion.
The ITS South Terminal will connect passengers from the Laguna/Batangas side to other transport systems such as the future North-South Commuter Railway project (currently the Philippine National Railways), city bus, taxi, and other public utility vehicles that are serving inner Metro Manila.
“This is the second ITS project that we have awarded. Our goal here is to give passengers coming from the south seamless transfers to other modes of transportation, as well as help decongest traffic in the Metro,” DOTC Secretary Jun Abaya said in a statement.
Under the contract, ALI is responsible for the design and construction of the new terminal, which will be built on a 5.57-hectare parcel of land along FTI Compound in Taguig.
The private concessionaire will operate and maintain the terminal for a period of 35 years.
ALI is expected to submit post-award requirements to the Pre-qualification, Bids and Awards Committee (PBAC) no later than 20 days from the receipt of the NOA.
“We received the NOA on November 13,” Reyes said.
Construction is set start mid-2016. The project is expected to be completed by January 2018. Operations of the terminal are targeted to be in full swing by February 2018.