The Philippine government is expected to
formally award the 65-billion-peso (US$1.5 billion) Light Rail Transit Line 1
(LRT-1) project next week, or after the railway regulator holds a key meeting
on July 16, an official said.
The
approval of the Light Rail Transit Authority (LRTA) board is required before
the contract can be awarded to the sole bidder for the massive public-private
partnership (PPP) deal, LRTA board secretary Hernando Cabrera said in an
interview.
Only
the tandem of Ayala Corp. and Metro Pacific Investments Corp., which are two of
the country's biggest conglomerates, made a bid for the LRT-1 project, which
involves the extension of the railway line to Bacoor in the province of Cavite.
Six other groups that had expressed interest in the project did not participate
in the bidding, which was actually the second attempt of the government to get
investors for the project, citing unattractive financial prospects.
The
LRTA board is chaired by Transportation Secretary Joseph Abaya while its
members include Cabinet secretaries from the Finance, Economic and Road
Infrastructure departments.
The
officials are set to hold their meeting next Wednesday, Cabrera said.
“The
board would have to conduct the necessary due diligence,” he explained.
Transportation
department spokesman Michael Sagcal said in a separate interview that an award
was possible next week.
The
government, in this case, took several more steps in evaluating the offer of
Ayala-Metro Pacific’s Light Rail Manila consortium, given that the group was
the sole bidder.
These
steps included securing the approval of the National Economic Development
Authority, chaired by President Aquino.
Because
the operations of the railway line were included, it would provide fresh
revenue streams for both Ayala and Metro Pacific.
Miguel
R. Camus
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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