TRAIN operator Light Rail Manila Corp. (LRMC) vowed to support the government in its railway development program, whether via the build-operate-transfer route.
anchoring its business expansion on the Duterte administration’s massive infrastructure thrust.
“Whatever the government says, if they say they want to build because it is faster—I still have many doubts that they can do it faster— we will dance with the music,” company president Rogelio L. Singson told the BusinessMirror in an interview.
The Duterte administration has lined up several rail infrastructure deals in its huge pipeline of projects: the Mega Manila Subway, the Mindanao Railway, the Philippine National Railways South Long Haul Line and the Light Rail Transit (LRT) Line 2 Extension, among others.
A number of these projects originated from the Aquino administration, mostly under the Public-Private Partnership (PPP) Program. The current administration, however, wanted to place these projects under state funding so as to hasten their construction.
“The future of LRMC is to expand. We will follow what the government wants to build,” he said. “We will be ready for what they want to implement.” The railway company is already preparing to flaunt its qualifications for the future auctions.
“We are gearing up. We are looking at setting a gold standard of excellence —not silver, not bronze. We worked for ISO excellence and luckily we were able to pass two: one for Quality management and another for environmental management,” he added.
The operator of the Light Rail Transit (LRT) Line 1 passed the audit of TÜV Rheinland, with a recommendation or certification in Quality Management Systems (ISO 9001:2015) and Environmental Management Systems (ISO 14001:2015).
ISO 9001:2015 is the international standard that specifies requirements for a Quality Management System (QMS). Organizations use the standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.
On the other hand, ISO 14001:2015 specifies the requirements for an Environmental Management System that an organization can use to continuously improve its environmental performance. It is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability.
“We will receive our certifications in September, and these will make us the only rail operator with ISO certifications in the Philippines,” he said.
‘Correct policy’
Singson, a member of the Aquino Cabinet, noted that the Duterte administration’s policy on rail development is quite ideal, given that such a mode of implementation removes the burden of recuperating capital from user fees.
President Duterte’s economic team are focused on executing infrastructure-development plans—many of which are in the rail sector—under the hybrid mode of implementation.
In a nutshell, a project is considered a hybrid if the government pays for the cost to build it, and a private company will operate and maintain it. The main reason economic managers chose this particular mode of infrastructure development is the speed of construction, aside from seeing less legal hurdles.
The Philippines has a long history of projects being delayed due to legal tussles. Take the construction of a simple common station, for one. It took the government almost a decade to settle the legal issue on such a small project—too small that it is too common in neighboring countries in the Asean—due to cases filed by the private sector. Hence, economic managers are pushing for hybrid projects under the Duterte administration’s flagship infrastructure program—the “Build, Build, Build”.
“If they want to make the fares affordable, that is the correct policy. The question there is if the government can execute—that is another issue that needs to be addressed,” Singson said.
He explained that hybrids can effectively reduce the cost of user fees, as the government’s main mandate is not to make money, but to serve the people through public infrastructure. Also, government loans carry much smaller interest rates, making the facility more affordable to build.
“If they will build the civil works and then privatize the facility, the fare will be based on maintaining, and not on the recovery of capital expenditures, which is ideal, because the government loaned the money at low interest rates,” the official added.
The fare, then, will only cover the cost of operating the facility, and maintaining it. “It is even the obligation of the government to build it. But the operations and maintenance portion, that is what you can pass on to the users,” he said. This, he emphasized, is the ideal way of building infrastructure for the benefit of the public. He cited his own project during his stint as the chief of the public-works department as a concrete example.
“I did this during my time in the public-works department. We built the Subic-Clark-Tarlac Expressway then privatized the operations and maintenance, which is the same with other countries, wherein the government will build, but will not pass the burden to the consumers. It really has to subsidize,” he said.
Singson’s group is currently working on the construction of the Cavite portion of the LRT Line 1, Southeast Asia’s oldest overhead railway system.
Targeted for completion in about four years after the delivery of right of way, the 11.7-kilometer Cavite Extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niyog, Cavite. It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.
Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Cavite. The new stations are Aseana, MIA, Asia World, Ninoy Aquino, Dr. Santos, Las Pinas, Zapote and Niyog. The intermodal facilities shall be located at Dr. Santos, Zapote and Niyog.
The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium, park, etc., and be located to suit passenger flow routes from residential areas.
Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian-cross striping and curb cuts for handicapped access will also be provided.
LRMC holds the concession for the operations, maintenance and the extension of the train line. It signed the agreement with the government in October 2014. The company will operate and maintain the oldest train system in the Philippines for 32 years.
anchoring its business expansion on the Duterte administration’s massive infrastructure thrust.
“Whatever the government says, if they say they want to build because it is faster—I still have many doubts that they can do it faster— we will dance with the music,” company president Rogelio L. Singson told the BusinessMirror in an interview.
The Duterte administration has lined up several rail infrastructure deals in its huge pipeline of projects: the Mega Manila Subway, the Mindanao Railway, the Philippine National Railways South Long Haul Line and the Light Rail Transit (LRT) Line 2 Extension, among others.
A number of these projects originated from the Aquino administration, mostly under the Public-Private Partnership (PPP) Program. The current administration, however, wanted to place these projects under state funding so as to hasten their construction.
“The future of LRMC is to expand. We will follow what the government wants to build,” he said. “We will be ready for what they want to implement.” The railway company is already preparing to flaunt its qualifications for the future auctions.
“We are gearing up. We are looking at setting a gold standard of excellence —not silver, not bronze. We worked for ISO excellence and luckily we were able to pass two: one for Quality management and another for environmental management,” he added.
The operator of the Light Rail Transit (LRT) Line 1 passed the audit of TÜV Rheinland, with a recommendation or certification in Quality Management Systems (ISO 9001:2015) and Environmental Management Systems (ISO 14001:2015).
ISO 9001:2015 is the international standard that specifies requirements for a Quality Management System (QMS). Organizations use the standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.
On the other hand, ISO 14001:2015 specifies the requirements for an Environmental Management System that an organization can use to continuously improve its environmental performance. It is intended for use by an organization seeking to manage its environmental responsibilities in a systematic manner that contributes to the environmental pillar of sustainability.
“We will receive our certifications in September, and these will make us the only rail operator with ISO certifications in the Philippines,” he said.
‘Correct policy’
Singson, a member of the Aquino Cabinet, noted that the Duterte administration’s policy on rail development is quite ideal, given that such a mode of implementation removes the burden of recuperating capital from user fees.
President Duterte’s economic team are focused on executing infrastructure-development plans—many of which are in the rail sector—under the hybrid mode of implementation.
In a nutshell, a project is considered a hybrid if the government pays for the cost to build it, and a private company will operate and maintain it. The main reason economic managers chose this particular mode of infrastructure development is the speed of construction, aside from seeing less legal hurdles.
The Philippines has a long history of projects being delayed due to legal tussles. Take the construction of a simple common station, for one. It took the government almost a decade to settle the legal issue on such a small project—too small that it is too common in neighboring countries in the Asean—due to cases filed by the private sector. Hence, economic managers are pushing for hybrid projects under the Duterte administration’s flagship infrastructure program—the “Build, Build, Build”.
“If they want to make the fares affordable, that is the correct policy. The question there is if the government can execute—that is another issue that needs to be addressed,” Singson said.
He explained that hybrids can effectively reduce the cost of user fees, as the government’s main mandate is not to make money, but to serve the people through public infrastructure. Also, government loans carry much smaller interest rates, making the facility more affordable to build.
“If they will build the civil works and then privatize the facility, the fare will be based on maintaining, and not on the recovery of capital expenditures, which is ideal, because the government loaned the money at low interest rates,” the official added.
The fare, then, will only cover the cost of operating the facility, and maintaining it. “It is even the obligation of the government to build it. But the operations and maintenance portion, that is what you can pass on to the users,” he said. This, he emphasized, is the ideal way of building infrastructure for the benefit of the public. He cited his own project during his stint as the chief of the public-works department as a concrete example.
“I did this during my time in the public-works department. We built the Subic-Clark-Tarlac Expressway then privatized the operations and maintenance, which is the same with other countries, wherein the government will build, but will not pass the burden to the consumers. It really has to subsidize,” he said.
Singson’s group is currently working on the construction of the Cavite portion of the LRT Line 1, Southeast Asia’s oldest overhead railway system.
Targeted for completion in about four years after the delivery of right of way, the 11.7-kilometer Cavite Extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niyog, Cavite. It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.
Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Cavite. The new stations are Aseana, MIA, Asia World, Ninoy Aquino, Dr. Santos, Las Pinas, Zapote and Niyog. The intermodal facilities shall be located at Dr. Santos, Zapote and Niyog.
The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium, park, etc., and be located to suit passenger flow routes from residential areas.
Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian-cross striping and curb cuts for handicapped access will also be provided.
LRMC holds the concession for the operations, maintenance and the extension of the train line. It signed the agreement with the government in October 2014. The company will operate and maintain the oldest train system in the Philippines for 32 years.
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