DOTr asks for immediate completion of LRT-1 Cavite Extension Project

Based on Light Rail Manila Corporation’s (LRMC) original plan, the LRT Line-1 Cavite Extension project is expected to be completed in the last quarter of 2021.

However, transportation Secretary Arthur Tugade wanted to complete the project in 2019 or 2020 for the benefit of thousands of commuters who take LRT-1.

“Their assumption of construction is 8hrs a day, sabi ko pwede ba yung construction gawin nating 24 hrs, without sacrificing quality of construction,” Secretary Tugade said. (Their assumption of construction is eight hours a day. I asked them if construction can be done 24 hours without sacrificing quality of construction.)

LRMC said it will work doubly hard to complete the LRT-1 extension project earlier than its expected completion.

Under the project, eight stations will be constructed linking Parañaque City, Las Piñas City and Bacoor City.

The stations are Aseana, Mia, Asia World, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote and Niog station in Bacoor City, Cavite.

Upon completion of the project, the two-hour travel time from Cavite to Metro Manila will be shortened to 40 minutes.

LRMC added that the project completion might coincide with the arrival of the new trains for LRT Line-1.

At present, the Department of Transportation (DOTr) and Japan International Cooperation Agency are on bidding process for the planned acquisition of new trains.

The LRMC administration assures this will not be the same as what happened to MRT-3 where 48 new coaches bought by the previous administration from China could not be utilized due to technical issues.

“As early as now, we are getting involved dun sa procurement process, sabi kasi namin imagine ang na-inherit namin sa gobyerno is 3 kinds of trains meron galing ng Belgium, merong galing Korea, meron galing Japan, may darating na pang-4 baka iba na naman configuration nito patay kami sa pyesa, patay kami sa maintenance, iba-ibang specifications,” LRMC President Rogelio Singson said.

(As early as now, were are getting involved in the procurement process. As we have said, imagine, we inherited three kinds of trains from the previous government. There are trains from Belgium, Korea, Japan. There are more to come perhaps with different configurations, it will be hard for us. As to the issue on parts, maintenance and other specifications.) — Joan Nano | UNTV News & Rescue

Private capital for public good

An infrastructure summit organized by the local constructors association is ongoing as I write this column. The summit is being held in an atmosphere marked with anxiety and frustration on the part of the local constructors. They can’t figure out the administration’s build build build program, where it is going… or not.

The original conference program looked more promising with Cabinet members making presentations. The final program, however, lists a lot of lower level substitutes. Perhaps the Cabinet secretaries are truly busy or are afraid to answer questions about their programs. Hangang glitzy PowerPoint presentation lang sila.

The private construction companies are worried about the abrupt change of plans from PPP or Private Partnership Program to ODA or official development assistance. The sudden shift delayed the launch and completion of projects during the Aquino watch.

Now, with Japan and China likely to get most of the really big projects via ODA, local construction groups fear they will also be locked out of the projects. ODA financed projects usually specify hiring a contractor from the donor country. At best, Filipino contractors can only hope to be subcontractors.

 It doesn’t matter that many of our local contractors have proven their capability to undertake large infra projects according to world class standards. Indeed, GAA financed projects or those financed by our national budget have been undertaken by some highly capable local contractors like DMCI, EEI and First Balfour. The Balintawak to Trinoma LRT1 and the LRT 2 extension to Antipolo superstructures come to mind.

 PPP projects are open to local and foreign contractors. As we can see in the case of the NAIA Expressway undertaken by San Miguel, DMCI once again proved high capability of a local contractor.

The NLEX-SLEX connector road project, also of San Miguel, is being undertaken by DMCI on the southern approach and EEI from the north. Using two capable contractors working from both ends at the same time shortens the construction time and will enable San Miguel to open the roadway sooner.

TPLEX or the Tarlac Pangasinan La Union Expressway is another example of a totally home grown project done at world class standards.

It is unfortunate the government bureaucracy, notably NEDA, is very biased against PPP. Some sources tell me that is because through the years, a mafia of feasibility study makers have entrenched itself in the bureaucracy. For PPP projects, such studies are undertaken by the winning proponent at their cost rather than government’s.

Sayang. We have through the years developed the concept of using private capital for public good through the PPP to the point that other countries and development institutions look to us for guidance.  Our PPP program has gone a long way from the BOT concept pioneered by Tong Payumo during the FVR watch.

Cosette Canilao, who headed PPP Center during the Aquino watch, is now considered an international authority on PPP.  Cosette is now based in Singapore advising many countries on how to implement their PPP programs. It is ironic that Cosette is more appreciated abroad than in her own country.

The other thing about PPP that our economic officials are disregarding has to do with using excess liquidity in our financial system.  Because of our inequitable economic system, the economic gains of the past few years accrued more to the nation’s one percent at the expense of the 99.

PPP would have been a good way of recycling all that excess wealth of our economic elite to finance massive infra development construction that would benefit all of us. Otherwise, all that excess wealth would find its way abroad.

The big local conglomerates are investing heavily in infrastructure abroad. As one of them quipped, it is easier and friendlier to do such big projects in our neighboring countries.

The Ayalas, Metro Pacific, Alliance Global, among many other local conglomerates are investing capital earned here abroad in building tollways, power plants and water systems.  That is alright for their stockholders. It diversifies risk, political and economic, across more countries. But we are losing capital already here.

In shifting from PPP to ODA, our economic officials are only looking at the low interest rate of loans from countries like China and Japan without accounting for other costs. ODA project costs are usually higher and lack transparency. PPP project costs are competitive as it is to the interest of proponents to keep costs down.

I have read accounts of some studies that warn of hidden costs (like currency losses) inherent in foreign denominated ODA financing.

PPP involves local borrowings that create a bigger multiplier effect – local banks get their funds moving, and local content of project cost are larger. Indeed, government can partner with PPP proponents and create a fund for OFWs to finance government infra projects as a risk free investment option that would give returning OFWs an income stream when they return.

The point simply is, government shouldn’t minimize the contribution of private capital for public good. This also gives Filipinos a sense of ownership for infra projects funded by their own money.

LRT 2 extension 

Lito Madrasto, who has represented the Philippine Constructors Association as an observer in DOTC biddings, made additional comments on the LRT 2-extension project (another horror story of the Abaya DOTC) in reaction to my Facebook post.

“When the Senate asked for projects/contracts to be covered by the requested emergency powers to ease traffic in Metro Manila, those left behind items of LRT2 East Extension should be included. They could also have included LRT2 West Extension (from Claro M. Recto to Port Area).

“An LRT2 line from Masinag to Port Area would have eased traffic considerably for Marcos Highway, Aurora Blvd, Ramon Magsaysay Blvd., Claro M. Recto and Divisoria.

“Commuters can then connect to MRT3 at Cubao and to LRT1 at Claro M. Recto. Hence, commuters from the eastside of Metro Manila will find it easy to go to all directions using the light rail system.” 

Groundbreaking held for LRT-1 extension

CONSTRUCTION of the long-awaited extension of the Lig ht Rail Transit Line 1 (LRT-1) to Bacoor, Cavite finally got underway Thursday, six years after the project was approved by the National Economic Development Board.

“The Cavite Extension will serve an additional 300,000 commuters and will significantly reduce travel time from Bacoor City to Manila from about two hours to about 40 minutes,” Light Rail Manila Corporation (LRMC) President and Chief Executive Officer Rogelio Singson told members of the press at the groundbreaking ceremony.

The additional 11.5-kilometer railway will connect to the existing LRT-1 in Baclaran and extend to Bacoor, Cavite.

The expanded line is expected to be completed by 2021, and will accommodate an estimated 800,000 passengers daily.

Singson was unsure whether the line would be opened in stages as sections are completed, or all at once.

“We are assessing if we can open package one first once it is finished, or if we are going to open it as a whole,” Singson said.

The new stations south of Baclaran will be named Aseana, MIA, Asia World, Ninoy Aquino and Dr. Santos Station, Zapote Station, and Niog Station.

Singson admitted that existing stations would not be able to handle the projected increase of number of passengers, necessitating some upgrades.

“EDSA-Taft (the stations where the LRT-1 connects with the MRT-3 line) cannot handle that volume coming from Cavite,” Singson said.

Singson said LRMC will work with the government to make adjustments to the stations of EDSA, Gil Puyat, Monumento, and the upcoming Common Station.

Transportation secretary Arthur Tugade meanwhile said that he is proposing a 24-hour work schedule to finish the Cavite Extension as soon as possible.

“Let us make it faster without sacrificing the quality of construction and cost,” Tugade said.

“If you have an honest to goodness cooperation between the private sector and government, then things will move,” Tugade added.