Page 4 - Hello Philippines February 2016 'B' issue

4 www.hello-philippines.com BUSINESS & FINANCE February 2016 / Fortnightly – No. 4 • UK & Europe Edition

LRMC gets P24B loan for
LRT-1 Cavite extension deal
THE Light Rail Manila Corporation loan amount is allotted to the Cavite The 11.7-kilometer extension will
(LRMC) has signed a P25 billion loan extension project and P8.7 billion to connect into the existing LRT-1 system areas,” the disclosure read. JICA loan. It’s still being bidded out,
to finance the construction of the Light rehabilitate the existing LRT-1 mass will run in a generally southerly Bouygues Travaux Publics, which expected (to arrive) by end-2017 at
Rail Transit Line 1 (LRT-1) and the rail system. direction to Niyog, Cavite. best, or probably early 2018,” Francisco
rehabilitation of the existing LRT-1 will provide the railway infrastructure said.
system. LRMC is a joint venture among The construction works will cover for the Cavite extension, is known
Metro Pacific Investments Corporation’s eight new stations across Pasay City, globally for complex projects involving “We are expecting 120 light rail
The company also signed the Metro Pacific Light Rail Corporation Parañaque City, Las Piñas City and tunnels, engineering structures and vehicles (LRVs) configured into 30
engineering, procurement and (MPLRC), Ayala Corporation’s AC Cavite. The new stations are Aseana, road, port and rail infrastructure, the trains of four LRVs each,” he said.
construction (EPC) agreement for the Infrastructure Holdings Corporation MIA, Asia World, Ninoy Aquino, Dr. most recent of which were the Hong
LRT-1 Cavite extension project, one (AC Infra), and the Philippine Santos, Las Piñas, Zapote and Niyog. Kong–Zhuhai–Macao Bridge, the Once fully delivered, the train
of the country’s largest public-private Investment Alliance for Infrastructure’s Port of Miami Tunnel and the Nîmes- capacity of the system is expected to
partnership (PPP) projects. Macquarie Infrastructure Holdings 60 km per hour. LRMC noted Montpellier rail bypass in France. increase the current daily capacity of
(Philippines) PTE Ltd. (MIHPL). the commercial speed on the Cavite 400,000 passengers.
Both deals were signed on extension would be 60 km per hour. Alstom Transport, on the other hand,
Thursday, Metro Pacific Investments 4-year construction. The will undertake the railway systems “The trains can carry more, shorten
Corp., one of the investors in LRMC, consortium and its EPC contractors, In general, the tracks are designed work, including track work, power queues... We have the tools to make the
noted in a disclosure to the Philippine Bouyges Travaux Publics and Alstom for a train speed of 80 km per hour for supply, train control and signaling service better. We hope that we will
Stock Exchange on Friday. Transport, are set to commence the the mainline track, 60 km/h through system, communications systems and have a little more resources,” Francisco
construction of the 11.7 kilometer stations, and 30 km per hour for the the construction of the Operations added.
“Yesterday afternoon we signed Cavite extension “... once right of way secondary and depot tracks. Control System to provide seamless
a P24-billion loan with three major is delivered by the Department of operation between the existing LRT-1 On October 12, 2014, LRMC signed
Philippine banks,” LRMC President Transportation and Communication The train system currently runs and the Cavite extension. a concession agreement with the
and Chief Executive Officer Jesus P. (DOTC) and Light Rail Transit at 40 km per hour, which is expected DOTC and LRTA for the P65-billion
Francisco told reporters in a separate Authority (LRTA). to be increased to 60 km per hour by LRMC plans to increase the number LRT 1 Cavite Extension, Operation &
briefing Friday. 2018. of trains through a JICA (Japan Maintenance Project.
“Hopefully by the second half of this International Cooperation Agency)
“These milestone agreements give year,” Francisco noted. “We’re targeting within the next loan. The project is part of the 2011-
us significant headway towards the two years we can bring it to 60 km per 2016 Philippine Development Plan to
construction and commissioning of the “We are confident we can start this hour,” Noel Eli B. Kintanar, executive “The new trains we’re hoping to accelerate infrastructure development.
much-awaited Cavite Extension which year... We can start construction when vice president of AC Infrastructure get funded by grantors through a
will benefit an additional 300,000 the ROW for the section 1 has been Holdings said at the same briefing. n with Jon Viktor Cabuenas / VS, GMA News / Published
passengers from four big cities in delivered to us. Based on the latest
southern Manila,” Francisco noted. report we received on January 22, “By the time the extension is / February 12, 2016 / 3:35 pm
there has been a lot of progress. ROW finished, the end station in Niyog going
The 15-year Omnibus Loan 1 will be ready by about the middle of to the Central Station – at 60 km per
and Security Agreement involves the year, by June 1,” he said. hour – you should be able to get there
Metropolitan Bank & Trust Company in 41.5 minutes,” Franciso said.
(Metrobank), Security Bank The extension of the LRT-1 beyond
Corporation and Rizal Commercial the Baclaran south-end station in Pasay “The new stations will be accessible
Banking Corporation (RCBC). City is targeted for completion in four to and from nearby community
years. facilities such as shops, schools,
Around P15.3 billion of the total stadium, park, and be located to suit
passenger flow routes from residential

Cavite to Manila in 40 minutes? That’s promise of LRT 1 Cavite Extension
MANILA - In a few years, commuters LRMC president and CEO Jesus Francisco of way so that the former can begin According to Francisco, the present LRT 1 of its link to the LRT 2, Francisco said.

will be able to get to Manila from Cavite said that at the targeted 60km/h speed construction. system carries over 400,000 passengers All 20 stations will be upgraded

in about 40 minutes, thanks to the LRT of the train, a roundtrip from Roosevelt Construction on the first segment – on weekdays, although it can fit up to over the next two years. Elevator and

1 Cavite extension project. station to Niyog station, the end of the Baclaran to Dr. Santos station, five stations 500,000, which it did during the recent escalator repairs are targeted to be

The Light Rail Manila Corporation Cavite extension, will take a little over two in all – may begin by July, Francisco said. feast of the Black Nazarene in Manila. halfway done by Easter.

(LRMC) on Thursday signed a P24- hours. Two more stations will be constructed To relieve and shorten the queue, The LRMC hopes that its participation

billion, 15-year Omnibus Loan and Presently, the old trains are running afterwards in Las Piñas. The construction Francisco said that they were trying to in the transportation sector will enable

Security Agreement (OLSA) with at the 40km/h limit. Francisco said these will be capped off by one last station in field as many trains as possible. the country to acquire spare parts that

Metrobank, Security Bank, and RCBC, trains – some dating back to the 1980s – Niyog, Cavite. It is unlikely that there will be new light are difficult to find in a faster way.

enabling it to finance the 11.7-kilometer will be repaired so that within the next two The Cavite extension project is targeted rail vehicles (LRVs) this year, as the new “Procurement in government is very

extension from Baclaran, Parañaque to years they will be running at 60km/h. to be completed in four years after the trains funded by the government through challenging,” Kintanar said. “And it’s

Niyog, Cavite. ‘All systems go on our side’. delivery of right of way. a loan from the Japan International really just this whole system of checks

On the same day, the LRMC also The LRMC and its contractors are “We in the private sector are ready,” Cooperation Agency (JICA) are still being and balances within the public sector.

signed the engineering, procurement, simply waiting for the Department of LRMC chief development officer Noel bid out, Francisco said. At best, these And I think, in fairness to the LRTA and

and construction (EPC) contract with Transportation and Communication Kintanar said. “All systems go on our side.” would arrive end-2017, he said. the previous operators, they have always

Bouyges Travaux Publics (in charge of (DOTC) and the Light Rail Transit The Cavite extension is expected to Some 120 LRVs were expected, or 30 been fighting those constraints, both

the civil works) and Alstom Transport (in Authority (LRTA) to deliver the right benefit an additional 300,000 passengers. trains, Francisco added. process and funds available.”

charge of the electromechanical works) For its part, the LRMC was “doing “What we hope will change in the

for the public-private partnership (its) best” to repair the trains that were future is the ability for the private

project. turned over when it took over the line in sector to really focus on procurement

This work includes the construction September last year, Francisco said. of difficult spare parts globally. It’s very

of the Cavite extension, as well as the Of these, about 77 to 78 LRVs or 25 challenging because the Philippines is

rehabilitation of the older line which trains were working upon turnover. The a very small train market compared to

runs from the Roosevelt to Baclaran LRMC had been able to repair more so that other big countries,” he said.

stations. the number increased to 85 to 88 LRVs. Usually, he said, the country takes a very

At least P15.3 billion of the loan The number, Francisco explained, varied low priority when it asks manufacturers to

will be used for the Cavite extension, because many of them were old machines. supply it with train parts.

while P8.7 billion while be allocated for Rehabilitation begins. The The LRMC’s P24-billion loan would

the rehabilitation of the existing LRT 1 rehabilitation of the old system has also hopefully show these manufacturers

system. begun. In December, the Doroteo Jose that the country has the resources to

In a press conference at the Holiday The train platform of the LRT 1 Cavite Extension is envisioned to look this way. Photo courtesy of the Light Rail station began to undergo roofing repairs. pay for them. n Tricia Aquino / InterAksyon.com
Inn and Suites in Makati City on Friday, Manila Corporation (LRMC). It was chosen as the starting point because
/ February 12, 2016 4:01 pm