Source: Philippine Daily Inquirer, Monday, 13 October 2003
Abigail L. Ho
Keen on finally getting the Light Rail Transit Line 1 extension (LRT 6) project off the ground, the Light Rail Transit Authority (LRTA) last week submitted to the Department of Justice recommendations on how to conduct the bidding for the $841-million contract.
The DOJ issued an opinion earlier in the year that the project should go through a Swiss challenge as Canadian engineering construction firm SNC -Lavalin International's project was unsolicited.
A Swiss challenge will give other interested entities a chance to submit their offers. The original proponent will have the right to match the best offer.
"We feel that the proposed project cost is too big. We're currently working on the amended and restated settlement agreement with SNC-Lavalin. We have also submitted our recommendation to the DOJ so that the bidding can push through as soon as possible," LRTA administrator Teodoro Cruz Jr. told the INQUIRER.
SNC-LAVALIN late last year threatened to pull out of its joint venture agreement with the LRTA as the LRT Line extension project, which will extend the existing LRT Line 1 to Bacoor in Cavite, showed no clear signs of taking off.
But a settlement agreement was reached by the LRTA and SNC-Lavalin on Jan. 9, extending their joint venture agreement for another 90 days.
With the DOJ opinion subjecting the project to a Swiss challenge, the LRTA and the Department of Transportation and Communications will then have to prepare the terms of reference for the project's auction.
In an earlier interview, Transportation Assistant Secretary Robert Castañares said SNC-Lavalin would seek compensation from the government should it lose to another entity in the Swiss challenge auction for the LRT 6.
This compensation would cover what the Canadian firm had spent for feasibility studies on the railway extension project.
The LRT Line 1 extension project will add another 11.7 kilometers to the existing Line 1 running from Monumento in Caloocan City to Baclaran in Parañaque City.
The first phase of the project will extend the line to Bacoor, Cavite which has projected ridership of 400,000 passengers per day. It may later continues to Imus and Dasmariñas.
The 11.7 km. extension project will be started in 2004 and completed in 2007.
Other railway projects in the pipeline are the phase 2 of the $785-million LRT Line 2 project from Cubao in Quezon City to Recto in Manila, the Metro Rail Transit Line 4 from Old Bilibid in Manila to Novaliches in Quezon City, and the $50-million South Commuter Line rehabilitation project.
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