MANILA, Philippines – The tandem of infrastructure giant Metro Pacific Investments Corp. (MPIC) and conglomerate Ayala Corp. expects to ink next month the concession agreement for the P65-billion Light Rail Transit Line 1 Cavite Extension project.
John Eric Francia, managing director of Ayala Corp., said the corresponding down payment would be made during the signing of the concession agreement. “Payment is expected to be made by concession agreement signing, which will potentially happen next month or so,” Francia said in a text message.
The winning bidder is required to make a down payment of 10 percent of its P9.35 billion premium bid for the PPP project while the remaining 90 percent would be paid during the concession period of 32 years.
Last Sept. 12, the DOTC awarded the LRT-1 extension project to the Light Rail Manila Consortium.
The lead member of the group is MPIC Light Rail Corp. with 55 percent while other members include Ayala’s AC Infrastructure Holdings Corp. with 35 percent and Macquaire Infrastructure Holdings (Philippines) Pte Ltd. with 10 percent.
The DOTC gave the consortium 20 days to comply with the post award requirement.
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Transportation Secretary Joseph Emilio Abaya earlier said the Light Rail Manila Consortium could take over the operations of LRT-1 and begin construction works by October next year or within a maximum of one year from the signing of the concession agreement.
Abaya said the PPP project should be fully operational within 54 months or by May 2019.
SM Prime Holdings Inc. of retail and banking magnate Henry Sy obtained a temporary restraining order (TRO) from the Supreme Court preventing the DOTC from transferring the location of the common train station infront of Trinoma Mall instead of SM City North EDSA based on an agreement in 2009.