Unsolicited proposal for MRT3: MVP group, DOTr holding talks

Pangilinan-led Metro Pacific Investments Corp.’s unsolicited proposal to take over the maintenance and operations of the MRT 3 is now progressing as dialogues have begun between the group and the Transportation department.

MPIC Chairman Manny V. Pangilinan said his group has had meetings with the Department of Transportation in the past week to tackle its unsolicited proposal for MRT 3.

“There have been some meetings between our team which we organized for the MRT3 and the DOTR for the past week or so. It seems that’s some progress on that side, there have been some meetings with the DOTR. So that’s quite an important dialogue in respect of our unsolicited proposal,” Pangilinan said at the sidelines of the NLEX-SCTEx-Cavitex Digital Tollroads launch.

Pangilinan said the MPIC’s proposal to take over the operations and maintenance of the MRT 3 is a concession agreement.

The arrangement is similar to how the Light Rail Manila Corp – MPIC’s consortium with Ayala Corp and Mcquarrie – is running the LRT line 1.

Ayala is also on board in the proposal for MRT 3.

Also indicated in the proposal is a 30-year concession period.

However, Pangilinan said, the group will eventually ask for the buyout of ownership of the MRT 3, which is currently being held by the Sobrepeña group.

Pangilinan cannot provide figures as to how much the MPIC-Ayala consortium will shell out for MRT 3.

The rehabilitation of the train line that runs from Taft Avenue to North Avenue is pegged at P12.5 billion, while cost of acquisition of ownership, concession fees, and other expenses have yet to be determined.

The MPIC-Ayala groups had also submitted an unsolicited proposal in 2012 to then-Transportation Secretary Joseph Emilio Abaya, but negotiations did not prosper.

“We all know, I think, the MRT has had a number of issues for the past many years. Kami lang naman, we want to resolve these issues for the benefit of commuters. I’m sure the government shares that objective as well. So quite how they will approach this is another subject matter,” Pangilinan said.

The MRT 3 is currently being operated by the government and maintained by Busan Universal Rail, Inc. (BURI).

BURI’s maintenance contract is set to end in January 2019.

http://www.interaksyon.com/unsolicited-proposal-for-mrt3-advances-mvp-group-dotr-holding-talks/

Third expressway connecting north-south Luzon proposed

A third expressway that will connect northern Luzon and southern Luzon expressways was proposed by Metro Pacific Tollways Corporation, a subsidiary of Metro Pacific Investments Corporation.

The proposal was submitted to Public Works and Highways Secretary Mark Villar, through Department of Public Works and Highways (DPWH) Public-Private Partnership (PPP) service.

The proposed expressway is a P62.4 billion four-lane toll road, the NLEx-Cavitex Port Expressway Link.

It will connect North Luzon Expressway (NLEX) and the Cavite Expressway (CAVITEX) running through Manila Bay area. Metro Pacific Tollways Corporation is the operator of NLEX and CAVITEX.

The first two north Luzon and south Luzon connectors are Metro Manila Skyway Stage 3 (MMSS3) and NLEX-SLEX Connector Road expected to be online by 2020 and 2021, respectively.

NLEX-SLEX Connector Road will start from NLEX-Harbor Link Segment 10 in Caloocan City to run through Manila crossing Espana towards PUP, Sta. Mesa connecting to Metro Manila Skyway Stage 3.

Metro Manila Skyway Stage 3, on the other hand, will connect South Luzon Expressway (SLEX) to Balintawak in Quezon City before NLEX through Central Metro Manila Area by using predominantly median of Quirino, G. Araneta and A. Bonifacio road networks.

https://www.update.ph/2017/08/third-expressway-connecting-north-south-luzon-proposed/19748

More electronic toll collection options for Metro Pacific's roads soon

For now, motorists traversing the NLEX can pay toll fees using their Easy Trip RFID, Beep cards, as well as Mastercard contactless debit, prepaid, and credit cards

Soon, motorists passing through the North Luzon Expressway (NLEX), Subic-Clark-Tarlac Expressway (SCTEX), and Manila-Cavite Expressway (Cavitex) can pay tollway fees with their contactless debit, prepaid, and credit cards as well as radio frequency identification (RFID).

For now, motorists traversing the NLEX have the option to pay toll fees using their Easy Trip RFID, Beep cards, as well as Mastercard contactless debit, prepaid, and credit cards, including their Smart Mastercard powered by PayMaya.

"The use of digital payments is helping usher a new era of tollways operations in the country where consumers can enjoy faster, more secure, and more convenient electronic transactions," Manuel Pangilinan, chairman of Metro Pacific Tollways Corporation (MPTC), said in a press conference in Quezon City on Tuesday, August 22.

MPTC is the concessionaire and operator of the NLEX, SCTEX, and Cavitex. (READ: PayMaya, Beep to be allowed soon in NLEX, SCTEX)

"This is very much aligned with the National Retail Payment System program of the Bangko Sentral ng Pilipinas (BSP) that aims to transform 20% of the country's payment transactions to electronic by 2020," Pangilinan added.

Mastercard acceptance for the Cavitex and SCTEX will start soon, according to MPTC president and CEO Rodrigo Franco. "Motorists will also be able to pay at MPTC expressways with their Visa contactless debit, prepaid, and credit cards soon," he said.

PayMaya Philippines and AF Payments Incorporated, sister companies of MPTC, are the providers of the electronic toll transaction services.

"The impact of digital transformation in the toll roads space will not only bring a whole new level of convenience to consumers but also place the country at the forefront of the region's digital global economy," said Orlando Vea, president and CEO of PayMaya Philippines.

MPTC said Easy Trip RFID is best for motorists who regularly pass by MPTC toll roads such as the NLEX and Cavitex, while those who already have Beep cards can also now use them at the expressways – aside from railway transit systems and point-to-point premium bus services.

Meanwhile, motorists who prefer to use their existing Mastercard prepaid, debit or credit contactless cards, can soon use them at MPTC's expressways too.

Other than the 3 existing expressways, MPTC's future developments include the NLEX-South Luzon Expressway Connector Road, NLEX-Harbor Link Segment 10, Cavite-Laguna Expressway, C5 Southlink, and Cebu-Cordova Link Expressway.

Light Rail Manila Corp. syncs expansion route with government’s rail plan

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.

PPPs no longer exempt from full project scrutiny

The National Economic and Development Authority (Neda) is an Aquino administration policy public-private partnership (PPP) projects from the Investment Coordination Committee (ICC) Technical Board to speed up the approval process.

Socioeconomic Planning Secretary Ernesto M. Pernia told the BusinessMirror on Wednesday that as long as a PPP project meets the cost threshold of P2.5 billion, it would have to go through the entire ICC evaluation process. PPP was the mode preferred by the Aquino administration in upgrading the state of infrastructure in the country. So in 2014 a memorandum circular issued to then-PPP Center Executive Director Cosette Canilao by former Neda Director General Arsenio M. Balisacan said project appraisal for PPPs would no longer go through the ICC Technical Board but through a Technical Working Group, which would evaluate PPPs in just 10 working days. The recommendation then would go straight to the secretary-level ICC Cabinet Committee.

Critics of this measure, however, expressed concern that the reduction of the number of days for evaluation has compromised the quality of PPP projects.

It can be noted that since the 2014 memorandum circular, several PPP projects have suffered delays and underwent rebidding.

These projects include the Light Rail Transit Line 1 South Extension and, more recently, the Laguna Lakeshore Expressway Dike Project.

Both were initially approved by the ICC and Neda Board in 2014. Other PPPs that have encountered problems were the Davao Sasa Port project and the Cavite-Laguna Expressway, which were also approved in 2014.

Pernia did not say if he would issue another circular to withdraw the order of his predecessor.

Pernia, however, assured stakeholders that the Duterte administration has no plans of abolishing the PPP Center, and that PPP continues to be an option for infrastructure development. This is despite the shift of preference to the “Build, Build, Build” scheme that calls for more financing and government budget in funding projects. BBB projects need to go through the entire evaluation process also.

“We are still experimenting with different combinations of financing,” Pernia said. “ICC Technical Board go through the ICC Cabinet level.” But an industry official, who asked not to be named, said the change in policy would just drag the process further. “An additional layer will tend to delay the much-delayed process.”

The official noted that the PPP projects that suffered delays and underwent rebidding are those implemented under the BOT law and not other modalities. “The rules of the BOT law must be amended to reflect the new process.”

Pernia also said the government still plans to retain the use of the Project Development and Monitoring Facility (PDMF) as a resource for the preparation of PPP projects.

The PDMF is a revolving fund used to procure consultants and technical advisers, as well as conduct prefeasibility studies for PPP projects.

After a PPP project is awarded, the winning bidder is required to reimburse the cost to the PDMF only if the project awarded to them received financing from the fund.

“So far, no [need to use the PDMF for non-PPP projects]. There are available funds to conduct the FS [feasibility studies] for other projects,” Pernia said.

http://www.businessmirror.com.ph/ppps-no-longer-exempt-from-full-project-scrutiny-2/

Pangilinan: MRT-3 buyout talks continuing

METRO Pacific Investments Corp. sees progress in its plan to buy Metro Rail Transit Corporation from the government, MPIC Chairman Manuel V. Pangilinan said.

“When we say progress, it means there are discussions,” Pangilinan told reporters in Quezon City on Tuesday on the sidelines of the launch of a digital tollways program for expressways in Luzon.

Pangilinan said that MPIC was in talks with the Department of Transportation to pursue its buyout plan for MRT-3.

Earlier, undersecretary for rails Cesar Chavez said that he wanted MRT-3 to be privatized then placed under the management of the Light Rail Transit Authority, operator of the LRT-2.

Pangilinan said MPIC had not decided on a specific amount of investment for MRT-3 yet.

“There are no hard estimates because it’s rather complicated,” he said.

Light Rail Manila Corporation president and chief executive officer Rogelio Singson has said that the problem with MRT-3 was that it is owned by the government.

“The difficulty with government is they are governed by very strict procurement laws. In the case of the private [sector], when I need a spare part, I will just buy it,” Singson said in a TV interview.

LRMC is a joint venture of Metro Pacific Investments Corporation’s Metro Pacific Light Rail Corporation (MPLRC), Ayala Corporation’s AC Infrastructure Holdings Corporation (AC Infra), and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) PTE Ltd. (MIHPL).

MPIC President Joey Lim said their company could develop the MRT-3 and make it profitable like the LRT-1.

“If we can make our Light Rail Transit-1 profitable, we are certain we can make our MRT-3 just as efficient,” Lim has said.

Ogie Alcasid releases new album

“Nakakalokal” is not just another album but a dream project for hit songwriter and singer Ogie Alcasid. After all, it’s his first CD as a Kapamilya.

“Nakakalokal” is produced and released under Star Music. The 10 tracks are backed up by the ABS-CBN Philharmonic Orchestra.

It was also his long-time dream to record an album with an orchestra and now that dream has become a reality. “I’ve never had so much fun doing a project and I hope the public enjoys the outcome,” Ogie revealed.

The album features new orchestral versions of his hit songs “Kailangan Ko’y IKaw,” “Ikaw Lamang,” “Ikaw Ang Pangarap” (theme song of “Lobo”), “Pangako,” “Hanggang Ngayon” and “Kailangan Kita.” Completing the tracks are six new compositions of Ogie: “Di Na Muli,” “Di Ka Pababayaan,” “Akala Ko,” “IKaw Ang Tanging Pag-ibig Ko” and the title track.

By the way, Ogie is celebrating his birthday with a special concert also titled “Nakakalokal” to be held at the Kia Theater on Aug. 25. Performers are his close friends among them Angeline Quinto, Erik Santos, Jaya, Yeng Constantino, Solenn Heussaff and Lovi Poe. Also performing is his daughter Leila, who’s out to make a name in the local entertainment world.

Ogie is happy his daughter is showing great promise not only as a singer but as a songwriter as well. With Lara Maigue as voice coach, Leila is now recording with Marion Aunor, whose talent Ogie greatly admires.

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Successful benefit concert

No one could be happier with the big success of the fundraising concert “Awit sa Marawi” than the man who conceptualized it, Aficionado Pres. & CEO Joel Cruz. The project was in collaboration with veteran singer Token Lizares (dubbed the “Charity Diva”) in recognition of her charitable undertakings especially in her hometown Bacolod.

When Joel and Token launched the project through a press conference at the Kiapo Rest. at Okada Manila, he already was optimistic they will earn no less than R3.5-million from the show which featured singing soldiers together with professional performers, including Token. In addition to the proceeds of the concert, Joel also donated R1-million from his own pocket. The proceeds will go to the soldiers affected by the Marawi crisis, and their families.

As he promised during the press launch, the singing soldiers led by ENS Mel Sorillano, did not disappoint the audience with their performance. “Sinabi ko naman na hindi ako mapapahiya dahil magagaling talaga sila,” Joel said while thanking those who supported the fundraising show.

He remembers meeting Generals Bato dela Rosa and Gilbert in a PNP event “na parang film festival where I was one of the awardees as Best Actor for an indie film, I forgot the title, but for schools lang ang film na ’yun. I became close to the AFP and PNP and because of this I became even more enthusiastic about this fundraising project,” Joel said

The professional performers included Token of course who sang “Love Story” and “I Who Have Nothing;” Dessa, The Angelos, Malu Barry, Jona Viray, Gem Mascarinas, and Jonathan Badon. Rounding up the performers were Boobsie Wonderland who provided the comic relief; Haydee Manosca, Capt. Bayani Maxilo, Jr., SSG Federico Agdagan, Jr., Elcid delos Reyes, JV Decena, Josh Marquina, Kiel Alo, and Virna Liza Moreno.

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Tidbits: Happy b-day greetings today, Aug. 24, go to Senators Tito Sotto and Francis Pangilinan, Councilor Star Querubín, Raul Teehankee, Tony Adriano, Atty. Jun Torrente, Zeny Trípoli and Tony Joaquin…Aug. 25: Eddie Ilarde, Liza Gokongwei, Encar Benedicto, Elizabeth Mancao, Lady Salterio, Leah Gordoncillo, Robbie Velasco, Peter Burgos, Raymund Miranda, Rudy Lumugdang and Irah Nicole Refugia of FEU Therapy & Rehab Unit…