Economy


Japan-content requirement for LRT-1 needs to fall, DoTr says




Posted on November 09, 2016


THE government is looking to reduce the proportion of Japan-sourced components to be used in 120 coaches to be deployed on Light Rail Transit Line 1 (LRT-1), in order for the project to attract more suppliers.

The 30% minimum-content requirement from Japan was set by the Japan International Cooperation Agency (JICA), which is funding the project.

“There are few takers” at 30%, Transport Assistant Secretary Caesar B. Chavez said. “If the content requirement is lowered to 23% or 22% other suppliers will emerge.”

He said final terms of the JICA P30 billion loan will be ready by year’s end, which will pave the way for soliciting new bids from suppliers.

When procured, the 120 coaches will be configured into 30 four-car train sets which will accommodate up to about 750,000 passengers daily.

The first April auction for the coach contract failed.

Mr. Chavez noted that train coach demand in Japan is surging because of building projects associated with the 2020 Tokyo Olympics.

The coaches are set to be deployed to the LRT-1 Cavite Extension public-private partnership project, which will extend the train line from Baclaran to Bacoor, Cavite. The project involves the rehabilitation of the existing 21-kilometer (km) line and an 11.7-km extension to Bacoor.

Construction of the LRT Cavite extension project has been hindered by right-of-way issues, which are expected to be resolved by next year.

Light Rail Manila Corp., the consortium of Ayala Corp., Metro Pacific Light Rail Corp., and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., bagged the Cavite extension deal worth P64.9 billion. -- Janina C. Lim