The group of Ayala Corp. (AC) and Metro Pacific Investments Corp. (MPIC) is scheduled to finish a due diligence on the proposal to take over the operations of Metro Rail Transit Line 3, the Department of Transportation said Wednesday.
“End of January ‘yung technical due diligence,” Transportation Assistant Secretary for Railways Timothy John Batan said in a press briefing in Quezon City.
The AC and MPIC submitted on July 14, 201 an unsolicited proposal to take over the MRT3 operations.
In September, Transportation Secretary Arthur Tugade said the group has been given an original proponent status which will be subjected to a Swiss Challenge for other companies to make competing offers and the original proponent the right to match the challenge.
Batan said the private sector must first finish the due diligence since the government will not be giving any warranty.
“It’s the first time that we adopted a ‘No warranty, as is, where is’, structure,” he said.
Once the due diligence is completed, the DOTr will discuss the project with the National Economic and Development Authority which has the final say on the matter.
“Our current trajectory is to endorse after that happens kasi the condition of the system will affect their capex (capital expenditure) assumptions, will affect a lot of components of their financial mode,” Batan said.
AC and MPIC operate the Light Rail Transit Line 1 through the Light Rail Manila Corp. (LRMC).
LRMC is a consortium of MPIC’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., and Macquarie Infrastructure Holdings (Philippines) PTE Ltd.
If the group bags the project, it would likely create another special purpose vehicle with a similar ownership structure as LRMC. —VDS, GMA News
“End of January ‘yung technical due diligence,” Transportation Assistant Secretary for Railways Timothy John Batan said in a press briefing in Quezon City.
The AC and MPIC submitted on July 14, 201 an unsolicited proposal to take over the MRT3 operations.
In September, Transportation Secretary Arthur Tugade said the group has been given an original proponent status which will be subjected to a Swiss Challenge for other companies to make competing offers and the original proponent the right to match the challenge.
Batan said the private sector must first finish the due diligence since the government will not be giving any warranty.
“It’s the first time that we adopted a ‘No warranty, as is, where is’, structure,” he said.
Once the due diligence is completed, the DOTr will discuss the project with the National Economic and Development Authority which has the final say on the matter.
“Our current trajectory is to endorse after that happens kasi the condition of the system will affect their capex (capital expenditure) assumptions, will affect a lot of components of their financial mode,” Batan said.
AC and MPIC operate the Light Rail Transit Line 1 through the Light Rail Manila Corp. (LRMC).
LRMC is a consortium of MPIC’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., and Macquarie Infrastructure Holdings (Philippines) PTE Ltd.
If the group bags the project, it would likely create another special purpose vehicle with a similar ownership structure as LRMC. —VDS, GMA News
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