P4-B ITS transport concession deal signed with ALI unit


CONSTRUCTION of the south phase of the Integrated Transport System (ITS) will begin in September, the Department of Transportation and Communications (DOTC) said on Tuesday after it signed a concession agreement with Ayala Land Inc. (ALI), the private partner for the project.

The DOTC said in a statement that the concession agreement was with winning bidder Arca South Integrated Terminal Inc., which is fully owned by ALI.

“With the South ITS connecting different modes of transportation and services, we can guarantee the public more efficient and seamless transfers. It will also improve traffic flow and reduce congestion in Metro Manila, as it will serve as a transfer point for provincial buses entering the metropolis,” said DOTC Secretary Joseph Emilio Abaya.

The P4-billion public-private partnership (PPP) project grants ALI a 35-year contract to design, construct, finance, maintain and operate the terminal facility that will connect passengers coming from the south to future rail lines, particularly the North-South National Railways.

Construction is set to commence in September 2016, the DOTC said. The 5.57-hectare terminal, which will constructed right in the middle of a land development project by ALI in the FTI compound, is expected to be fully operational by February 2018.

The South ITS is one of the intermodal facilities that will be the end-point for over 2,000 provincial buses currently entering Metro Manila daily, effectively decongesting main thoroughfares.

It is seen to allow convenient in-city public transport transfers as railway lines, city buses, taxis, and other public utility vehicles servicing inner Metro Manila will be made available.

ALI received the Notice of Award (NOA) for the project in November of last year after bagging the concession agreement when it submitted the lowest annual grantor payment of P277.8 million.

In a previous interview, ALI assistant vice president Alfonso Reyes said that their company will be funding the project through a combination of debt and equity.


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