Metro Pacific and Ayala part ways in P171B south rail project
Consortium partners Metro Pacific Investment Corp. (MPIC) and Ayala Corp. of bilyonaryos Manuel V. Pangilinan and Jaime Augusto Zobel de Ayala, respectively, have decided to pursue the P171-billion North-South Rail Project separately.
Ayala has teamed up with Aboitiz Equity Ventures Inc. led by bilyonaryo Erramon Aboitiz, while MPIC is forming a “very strong” consortium to bid for the south rail project.
MPIC vice president for business development Karim Garcia said MPIC and Ayala have agreed to partner for light rail projects, but since this is heavy rail, the erstwhile partners are allowed to partner with other entities.
Ayala and MPIC jointly signed a memorandum of agreement in 2012 to form an exclusive partnership to pursue and develop rail projects, where each parties will own a 50-stake in the projects and related real estate development undertakings.
The two conglomerates are partners in the P65-billion Light Rail Transit Line 1 extension to Cavite and the Automatic Fare Collection System project.
Both are also jointly pursuing to bid for the LRT Line 2 and LRT Line 6 under the government?s public-private partnership program.
Garcia said MPIC is set to sign a bid development agreement with three potential local partners and two foreign partners this week.
The new company would be named Metro Heavy Rail Alliance Consortium, with MPIC owning roughly a third of the company.
Other interested bidders include bilyonaryo Ramon S. Ang’s San Miguel Corp.
The project will revive the oldest rail system in Southeast Asia, beginning with the Manila-Legazpi section plus additional branch lines spanning 653 kilometers.
It involves the operation, maintenance and upgrade of the south line for 33 years, including the construction period of four years.