MPIC assures of uninterrupted train operations

The Metro Pacific Group-led consortium of private companies has given an assurance of uninterrupted train operations during the transition if given the green light to takeover the Light Rail Transit (LRT) 1 next week.

The Light Rail Manila Consortium (LRMC) has offered to takeover the LRT 1 operation and maintenance by September 5, ahead of the contractual turnover scheduled on October 2.

Metro Pacific Investment Corp. (MPIC) President Jose Maria Lim said LRMC is ready to takeover the oldest elevated rail in the capital. MPIC owns 55 percent of LRMC, which won the 64.9-billion LRT 1 Cavite Extension project.

"We're in a state of readiness to takeover so we might as well do it," Lim told reporters at the sidelines of Invest ASEAN 2015 conference held in Makati City yesterday.

"But our number one consideration is to ensure that the takeover does not result in any safety lapses," he clarified.

However, the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) are yet to decide when to allow LRMC to assume the operation and maintenance of LRT 1, which serves at least 500,000 commuters daily.

"We are not insisting on (taking over by) September 5," Lim clarified. "We are trying to work out with LRTA and DOTC a date when we can takeover. We are waiting for a response from them."

In the meantime, Lim said LRMC has "hired a project team to ensure that the physical preparation for the takeover are all covered and properly planned."

To recall, LRMC has offered to undertake the 64.9-billion LRT 1 Cavite Extension project and to remit 9.35-billion premium payment to the government. LRMC paid 20 percent of the premium bid during concession agreement signing last October 2 and will pay the rest over the life of the 32year concession period.

The LRMC is composed of MPIC with 55 percent interest, Ayala Corp.’s AC Infrastructure with 35 percent, and Macquarie Infrastructure Holdings Pte. Ltd. with 10 percent.

Ideally, LRMC should begin construction works and takeover LRT 1 operations one year after the concession agreement signing. Construction of the 12-kilometer LRT 1 extension from Baclaran in Parañaque City to Bacoor in Cavite should be completed and be fully operational within 54 months, or by May 2019.

The LRT 1 runs daily from Roosevelt in Quezon City to Baclaran in Parañaque City. Extending it by 11.7 kilometer up to Niyog in Bacoor and increasing its fleet will increase LRT 1's design capacity to 800,000 passengers.

Apart from the civil works component, the DOTC is set to commence the procurement of 120 brand new light rail vehicles for LRT 1. The 120 LRVs will be assembled into four-car train sets, adding 30 train sets to the LRT 1 fleet.