Metro Pacific interested in possible LRT-2 O&M auction
THE METRO Pacific group is open to participating in the bidding should the government decide to privatize the operations and maintenance (O&M) of Light Rail Transit (LRT)-2.
Light Rail Transit Authority (LRTA) Administrator Reynaldo I. Berroya said last week that there are ongoing discussions to privatize the operations and maintenance of LRT- 2 which could be decided in its next “two or three board meetings.”
“I think that’s welcome news, we’d be really interested to take a look at it. They just broke ground on the extension,” Metro Pacific Investments Corp. (MPIC) Chairman Manuel V. Pangilinan said in a chance interview when asked whether the group is open to the possibility of bidding for the project should government pursue that path for the mass rail system.
The government recently broke ground on the LRT-2 East extension project targeted for completion by August 2018, which will extend the rail system by two stations to Antipolo. The two new stations will be built: Emerald station, in front of Robinsons Metro East and Sta. Lucia in Cainta; and the Masinag station, at Masinag Junction in Antipolo City.
On the other end of LRT-2 — which will run from Recto to Pier 4 — the Department of Transportation has a target of starting construction by the end of this year.
MPIC is part of the Light Rail Manila Consortium ( LRMC) which operates and maintains the LRT-1 which runs from Baclaran in Pasay to Roosevelt in Quezon City.
Mr. Berroya said last week that aside from discussions on the possibility of privatizing LRT-2, LRTA is also reviewing the existing concession of LRT-1.
“There are many issues, including many breaches of the concession agreement. The government bears some responsibility, as in the case of the shortcomings of 120 rail cars that have not been turned over to the concessionaire, which is why there is a need for a review, which will cover everything,” the LRTA chief said.
The ongoing review will not however consider any cancellation of existing concessions.
“We haven’t reached that point, we’re carefully studying the advantages to the government since the direction is privatization,” he added.
The 120 new coaches are set to be deployed to the LRT-1 Cavite Extension project. It will be operated in 30 four-car train sets, allowing the line to accommodate 750,000 passengers daily, from just around 500,000 at present, the Transportation department earlier said.
LRMC is a consortium of MPIC, Ayala Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. which bagged in September 2015 the P64.9-billion LRT-1 Cavite Extension publicprivate partnership project, which will extend the train line from Baclaran to Bacoor, Cavite. It will operate and maintain LRT1 for 32 years.
The LRT-1 Cavite Extension project meanwhile involves rehabilitation of the 21-kilometer (km) line and an 11.7-km extension from Baclaran to Bacoor, Cavite.
MPIC is involved in the tollways, water, power, health care, rail, and logistics business.
Its shares slipped to P6.36 from P6.37 previously.
MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.