Paris-based Régie Autonome des Transports Parisiens (RATP) signed a 20-year operation and maintenance public-private partnership (PPP) agreement with infrastructure groups Ayala and Metro Pacific International Corp (MPIC) in Manila last week for the P65 billion (€1.2 billion; $1.5 billion) Metro Manila project.
The project, which entails the construction of the line’s 11.7-kilometre (km) eight-station extension into the Niog area in Bacoor, Cavite, is the first of its kind to involve a foreign company in the Philippines and is the largest PPP project awarded under the Aquino administration to date. It is also set to pave the way for the French company’s bid for Metro Manila’s second line extension, expected to come to market by June next year.
“We are looking at other PPP projects with the same partners. We are bidding on the LRT Line 2 operations and maintenance,” Francois-Xavier Perin, president of RATP Dev said during the signing of the agreement at the French residence in Makati alongside Light Rail Manila consortium officials.
The eight new stations will service the cities of Parañaque and Las Piñas up to Bacoor, 25km south of the capital.
The Light Rail Metro Manila consortium is comprised mainly of MPIC’s Metro Pacific Light Rail Corp. and Ayala’s AC Infrastructure Holdings Corp. which hold stakes of 55 percent and 35 percent respectively, with the remaining 10 percent being held by Macquarie Infrastructure's Philippine Investment Alliance for Infrastructure fund.
The P1.15-billion LRT Line 2 project, also run under a PPP model, will last 10 to 15 years and entails the construction of a 4.2 km extension of the line from Santolan station at Marcos Highway, north-east of the capital further out into Sumulong highway at Masinag, Antipolo, as well as the maintenance and operation of the line’s existing 11 stations.
The bidding authority for the project is the Department of Transportation and Communications.
Other companies that purchased pre-qualification documents for the project are APT Global, Inc., Globalvia, Aboitiz Equity Ventures, Inc. San Miguel Corp, GT Capital Holdings Inc, Japan's Marubeni Corp and DMCI.