The Philippines said on Saturday it had awarded a 65 billion pesos ($1.5 billion) contract to upgrade and extend Manila's oldest elevated railway line to a consortium comprised of Metro Pacific Investments Corp, Ayala Corp and Macquarie Group Ltd. The three firms submitted the lone bid in August last year for the Light Rail Transit (LRT) Line 1 Cavite Extension Project, so far the country's biggest Public-Private Partnership infrastructure deal offered by the administration of President Benigno Aquino.
The consortium has 20 days to comply with post-award requirements, including the payment of 10 percent of its 9.35 billion peso premium bid amount, after which the concession agreement may be executed, the Department of Transportation and Communications (DOTC) said in a statement. However, the award is subject to the final decision of the Supreme Court with respect to a dispute between Ayala Corp and another Philippine company, SM Prime Holdings Inc, over a common station project that will connect the LRT line with another railway in Manila, the DOTC said.
The consortium may begin construction and take over LRT operations within a maximum of one year from the signing of the concession agreement, the DOTC said. The extended railway should be fully operational by May 2019, it said. Three other groups, including San Miguel Corp, had planned to bid for the project but withdrew or did not participate in the auction, citing unattractive returns.