• DOTC speeds up LRT-1 Cavex bidding

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    The Department of Transportation and Communications (DOTC) will publish its invitation to bid for the improved P65-billion Light Rail Transit Line 1 Cavite Extension (LRT-1 Cavex) Project for three consecutive weeks starting December 3.

    “The only delay was in the schedule of the NEDA [National Economic and Development] Board meeting. Otherwise, we are still following the same four- to six-month timeline from obtaining approval to set the bid submission deadline,” Michael Arthur Sagcal, DOTC spokesman, said.

    He added that, “In fact, we are expediting it. We will adopt the single-stage bidding process, and we will set the bid submission date in the earlier part of Q2 2014 [second quarter of 2014].”

    DOTC said that the retender of the country’s largest railway public-private partnership (PPP) project is following the same four- to six-month timeline from obtaining approval to set the bid submission deadline.

    The single-stage bidding process means that interested groups will submit their qualification documents simultaneously with their technical and financial proposals, instead of having a separate prequalification phase. This will do away with the two-stage process, effectively cutting the entire period by about two months.

    Improve economic terms
    After the original bid for this project failed in August, the transport agency improved certain economic terms in the concession, which required a NEDA Board approval.

    These involve government absorbing the obligation to pay real property taxes (RPT), ensuring the integrity of the facility’s structure for a two-year period, permitting a 5-percent fare increase upon completion of the project, and allowing the submission of negative bids.

    The said improvements were approved on November 21.

    The LRT-1 Cavex project retains the major components of the original scope of works, namely the operation and maintenance of the entire LRT-1 system for a 32-year concession period, and the construction of an 11.7-kilometer southward extension from the Baclaran station to Bacoor, Cavite.

    It entails the construction of eight new stations, plus two future stations in Parañaque City, Las Piñas City, and the province of Cavite, opening up more convenient, efficient and faster access to education and employment opportunities in Metro Manila to a total of about four million people who live in the area.

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