|
By Darwin G. Amojelar, Reporter
THE World Bank may fund the huge financial requirements of the
planned extension of the Light Rail Transit Line 1 (LRT 1) South
Extension Project if the tight global credit condition continues,
according to the National Economic and Development Authority (NEDA).
In a document, the agency said the $1.1 billion
project, which includes purchasing rolling stocks, consulting
services for design and construction supervision among others, would
be implemented under a build-operate-transfer scheme, adding the
Washington-based lender may fund this if the credit crunch persists.
The current global financial crisis may prevent
private companies from raising money to finance the extension of the
LRT 1 to Cavite.
“However, once financial markets stabilize and
credit eases, the World Bank plans to privatize its
participation,” the NEDA said.
The agency said the Millennium Challenge Corp.
(MCC) may finance the government’s counterpart amounting to about
$675 million, which will basically fund a portion of the civil
works.
The MCC Millennium Challenge Account (MCA) is
the foreign-assistance program that former US President George W.
Bush announced at the 2002 Financing for Development Conference in
Monterrey, Mexico.
From the original $683 million, the cost of the
LRT 1 South Extension Project has climbed to $1.8 billion.
The Light Rail Transit Authority will resubmit
the proposed project for approval, a NEDA official earlier said.
The extension is a priority project of the
Arroyo administration and will pass through the southern cities of
Parañaque and Las Piñas and neighboring municipalities of Bacoor,
Imus and Dasmariñas in Cavite.
The bidding of the project was cancelled early
last year because of the absence of counterpart government funds.
Companies that had expressed interest in the
project were Isolux Corban of Spain, Rites Ltd. of India,
Infrastructure Leasing and Network Services Ltd. of India, DM
Consunji Inc., Sumitomo Corp., China State Construction Engineering
Corp., China Railway South Group Co. Ltd. and Overseas Engineering
Co. of China.
The winning bidder was supposed to fund the
design, construction, installation and integration of the extension
with the existing lines. It would also be in charge of the
integrated operation and maintenance of the entire line and
provision of enhancement works on the integrated system.
The project will have a 40-year concession
period inclusive of four years of construction.
It will include eight new passenger
stations with provision for two additional future stations. It is
expected to serve 800,000 passengers a day and cut travel time from
Bacoor, Cavite, to Monumento, Caloocan City, to
less than an hour.
Earlier, the NEDA approved six projects worth
$935.4 million to be funded by the MCA, and forwarded to MCC for its
peer review by second week of December this year.
The government is also asking MCC to fund the
Household Electrification of Remote Areas in Luzon, the Tabuk
Hydropwer Project, the Feasibility Study for Missionary
Electrification in 29 Selected Islands within Luzon, The Water
Supply Development for Non-Operational/Non-Creditworthy Water
Districts Project and the Rural Water Supply, the Sanitation Sector
Project for Visayas and Mindanao, and Enhancement of Integrity
Platforms in Government.
|
