Light Rail Manila Consortium of Ayala Corp. and Metro Pacific Investments Corp. secured a P24-billion loan to rehabilitate the existing line of the oldest metro rail system in Southeast Asia and construct an extension up to Cavite.
The rehabilitation and extension of Light Rail Transit Line 1 is expected to start in the second half of 2016, after LRMC signed a contract worth 450 million euros with French companies Alstom and Bouygues Travaux Publics. The contract with Alstom alone is worth around 160 million euros.
LRMC, which won the bidding for the LRT Line 1 extension project in September 2014, said it signed a 15-year omnibus loan and security agreement with Metropolitan Bank & Trust Company, Security Bank Corp. and Rizal Commercial Banking Corp. to finance the project.
Under the concession agreement signed by LRMC with Light Rail Transit Authority, the consortium is allowed to finance 70 percent of the project cost through borrowings and loans and the 30 percent through equity infusion by the members of the consortium.
The railway operator said of the total P24-billion loan, P15.3 billion would be allocated for the Cavite extension and P8.7 billion for the rehabilitation of the existing LRT 1 system.
The consortium would be spending over P40 billion to rehabilitate and expand LRT Line 1.
“These milestone agreements give us significant headway towards the construction and commissioning of the much-awaited Cavite Extension which will benefit an additional 300,000 passengers from four big cities in southern Manila,” LRMC president and chief executive Jesus Francisco said.
Alstom will provide an integrated metro solution which includes signaling and communication system, traction power supply and track work on the 12-km extended line including one new depot and the extension of the existing depot.
Alstom will also equip Atlas 100 on-board signaling solution for 60 trains and revamp signaling system for the existing 20-km line.
“We are pleased to sign this contract today which aims to offer Manila’s inhabitants a safe, fast and reliable transportation system which takes part in the economic development of the Philippines. Alstom is looking forward to providing customers and partners its expertise in integrated transport solutions,” Dominique Pouliquen, senior vice president Asia Pacific at Alstom said.
Francisco said LRMC expected to start the construction of LRT Line 1 Cavite extension project in the second half of 2016.
He said the government had delivered over 90 percent of the right of way for the project, but the challenge was the relocation of the informal settlers in the area.
“The government targets to transfer the informal setter in April,” Francisco said.
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 and consisting of the satellite depot and new station.
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 commercial speed of the Cavite extension will be 60 kilometers an hour. The horizontal alignment shall be designed for a train speed of 80 kph for the mainline track; 60 kph through stations and 30 kph for secondary and depot tracks.
The extended rail line is expected to help increase the capacity of LRT 1 from 500,000 to 800,000 passengers daily and benefit more than four million residents in the southern part of Metro Manila and Cavite.
LRMC took over the operation and maintain of LRT Line 1 on Sept.12, 2015. LRT 1 currently accommodates a daily average of 400,000 commuters from Baclaran in Pasay City to Roosevelt in Quezon City.
The government, through the Transport Department, will also procure 120 light rail vehicles for the project.
Metro Pacific Light Rail Corp. controls 55 percent of the consortium while AC Infrastructure Holdings Corp. of Ayala Corp. has 35 percent. Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) Pte Ltd. owns 10 percent.