DOTC to draft rules on LRT privatization

August 10, 2010 10:45 am 

MANILA, Aug. 9 — The Department of Transportation and Communications (DOTC) said it is drafting a privatization plan for the Light Rail Transit (LRT) Line 1.

"There are two firms that approached us. They asked if there is any way they can possibly help. So, we told them we will hand in our concept paper of privatization to them," Glicerio Sicat, DOTC undersecretary for aviation and rails said.

Sicat did not identified the two interested firms, but he said they are from property sector.

"We will do the concept paper. We will probably hire a consultant to do it for us. After which we will present the paper to interested investors," he said.

Earlier, Reghis Romero 2nd's Ecorail Transport Services Inc. has proposed to manage, operate and maintain the entire LRT Line 1, including the existing north extension and the proposed south extension.

The LRT 1 runs from Baclaran in Pasay City to Monumento in Caloocan City, while the LRT North Extension runs from Monumento to North Avenue in Quezon City.

Ecorail and its foreign partner China Railways 18th Bureau Group Corp. also proposed the construction of the LRT 1 South Extension Project for P56.557 billion.

China Railways is a contractor of railway, road, water conservancy and hydropower, municipal and public construction.

Ecorail has proposed to construct the LRT South Extension under a joint venture (JV) scheme.

The South Extension Project would extend the existing 15-kilometer LRT 1 by an additional 16 kilometers from Baclaran to Imus, Cavite with nine dedicated railway stations and four intermodal stations.

The stations would be built along the Redemptorist Road, Manila International Airport Authority (MIAA), Asiaworld, Ninoy Aquino International Airport (NAIA), Sucat, Manuyo Uno, Las Piñas, Zapote, Talaba, Niog, Bacoor, Aguinaldo and Imus.

Ecorail plans to construct the project in four years and start operations on the fifth year.

Ecorail will charge an average fare of P20.98 per passenger staring on years two and three and increase it to P26 per passenger at the start of year four onwards.

The consortium proposes to pay state-run Light Rail Transit Authority three percent of gross rail revenues, or P27.3 billion in 40 years, and 8 percent of gross non-rail revenues or P7.5 billion. (PNA) LOR/DGA/utb


Comments are closed.