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DOTC Bids Out LRT-1 Cavite Extension Project by Next Year

On Monday, the Department of Transportation and Communication (DOTC) confirmed that Light Rail Transit (LRT) Line 1 Cavite Extension Public-Private Partnership (PPP) Project worth P64.9 billion was approved by the National Economic Development Authority (NEDA).  The DOTC plans to move the bidding to the second quarter of next year.

The transport agency explained that the auction will take four to six months to begin inviting new bidders in. The bidding process starts when an invitation to bid is published.

DOTC Spokesman Michael Arthur Sagcal said, “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.”

The NEDA Board’s approval includes improved terms for the project. Under the new terms, the government will shoulder the obligation to pay real-property taxes (RPT), subsidize unexpected power rate hikes, ensure the completion of the project in two years time, allow a 5% fare increase upon completion of the project, and allow submission of negative bids.

NEDA also imposed the project cost to increase to P64.9 billion for the addition of some components regarding the project’s new term such as rehabilitation works on trains and installation of the single ticketing system called Automatic Fare Collection System (AFCS), which is separately being bid out by DOTC.

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