Light Rail Manila Corporation (LRMC) today signed together with the Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) the concession agreement for the P65-billion Light Rail Transit Line 1 Cavite Extension and Operations and Maintenance Project.
LRMC is the joint venture company of Metro Pacific Light Rail Corporation, AC Infrastructure Holdings Corporation, and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. LRMC submitted the lone bid with a premium of P9.35 billion.
Under the concession agreement, LRMC will operate and maintain the existing LRT Line 1 and construct an 11.7-km extension from the present end-point at Baclaran to the Niog area in Bacoor, Cavite. A total of eight new stations will be built along this route, which traverses the cities of Parañaque and Las Piñas up to Bacoor, Cavite.
The extended rail line is envisioned to help ease the worsening traffic conditions in the Parañaque-Las Piñas-Cavite corridor and enhance commercial development around the rail stations.
The International Finance Corporation, Development Bank of the Philippines, Pinsent Masons LLP, and C&G Law (Gatmaytan, Yap, Patacsil, Gutierrez, and Protacio) acted as transaction advisers to DOTC and LRTA in the bidding of this project.
Said Ayala Corporation president and COO Fernando Zobel de Ayala: "We are very pleased to reach this milestone on this important infrastructure project. The LRT Line 1 is a vital component of our city's transport network that will help ease the pressures brought about by the increasing development around the city.
“As we assume the responsibility for the operations of the train line next year, we hope to be able to deliver in due time a much improved riding experience that is safe and efficient for our daily rail commuters."
DOTC, LRTA, and LRMC are expected to complete certain requirements and obligations before LRMC officially takes over the existing operations, which is scheduled no later than one year from the signing of the concession agreement.