The Department of Transportation and Communications (DOTC) is scheduling the bid submission deadline for the P65-billion Light Rail Transit Line-1 (LRT-1) Cavite extension within the second quarter of next year.
The National Economic Develop-ment Authority (NEDA) Board recent approved the terms of the county’s biggest public-private partnership (PPP) project.
“This timeline is meant to foster competitive bids. We believe that the improved terms will attract more players, who will need a reasonable period to study the project and prepare their proposals,” said DOTC spokesperson Michael Arthur Sagcal.
The DOTC also said that, “In order to foster more competitive bids for the Light Rail Transit Line-1 Cavite Extension PPP project [LRT-1 Cavex] the DOTC aims to give roughly four to six months’ time from the start of the bidding process to allow new players to come into the picture.”
The bidding process begins upon the publication of an invitation to bid, which the transport agency will do within December 2013.
The improvements in the terms of the project involve government absorbing the obligation to pay real property taxes (RPT), ensuring the integrity of the facility’s structure for a two-year period, subsidizing unexpected surges in power rates beyond a particular range, permitting a 5-percent fare increase upon completion of the project, and allowing the submission of negative bids.
The NEDA Board’s approval also entailed an increase in the project cost to P64.9 billion due to the addition of several components to the project’s terms.
These new components, which the DOTC originally intended to pursue as separate projects, will now form part of the winning concessionaire’s obligations, making the LRT-1 Cavex bid more robust.
These new components include: some remedial and rehabilitation works for the existing system such as repairing the carriage viaduct; rehabilitating existing trains especially their roofing; and making the LRT-1 system compliant with laws and regulations;
It also includes the installation of equipment which will be part of the common ticketing system called the automatic fare collection system (AFCS), which is being bid out by the DOTC separately, for the Cavite extension portion of LRT-1 only.
The South Extension Project involves the extension of the existing LRT Line-1 South. Currently, Line 1 covers 21 stations from Roosevelt Avenue in Quezon City to Monumento (north link) to Baclaran in Pasay City.
The total length of service line is 20.7 kilometers. The extension project extends the service line by 11.7 kilometers covering 10 more stations that will pass through the cities of Parañaque and Las Piñas up to Bacoor, Cavite.
Other components including contingency costs, on account of the interface risk with related projects such as the AFCS PPP, the construction of the Common Station which will link LRT-1 with Metro Rail Transit (MRT) Lines 3 and 7 in the EDSA-North Avenue area in Quezon City, and the LRT-1 Cavex components procured under the project’s Official Devel-opment Assistance portion.