Ayala Land Wins Bid for South Terminal PPP
By: KEITH RICHARD D. MARIANO
(Updated 12:31 p.m.) Ayala Land Inc. offered a better bid than Filinvest Land Inc. for the Integrated Transport System’s (ITS) South Terminal Project in Taguig to win the P4-billion public-private partnership (PPP), initial results of the financial bidding for the project on Tuesday showed.”Please be informed that Ayala Land Inc. (‘ALI’) has won today the bid for the Integrated Transport System Project – South Terminal (‘ITS South Project’),” the company told the Philippine Stock Exchange in a separate disclosure.”ALI will be awarded by the Department of Transportation and Communications (“DOTC”) with a 35-year concession agreement to build and operate the ITS South Project and will likewise have the right to develop and operate commercial leasing facilities on the same 5.57-hectare former Food Terminal Inc. property on which the future transport terminal will be built,” it added.
Ayala Land proposed P277.89 million in annual grantor payment – the payments the government must pay the concessionaire for the PPP project – or a third of the P1 billion outlined by Filinvest.”Projects like this would actually help even their other businesses because when you provide a lot of foot traffic for instance and vehicular traffic to a particular location, then it enhances whatever facilities that they might have available for the consumer public,” Jose Perpetuo Lotilla, DOTC undersecretary for Legal Affairs, told reporters.
An estimated 4,000 buses and 160,000 passengers will feed into the terminal from the South Luzon Expressway (SLEX), the company noted.
“This is a very strategic project and it’s a good project also for the country, because this will help declog Metro Manila. We are very happy with the result of the bidding today,” Alfonso Javier Reyes, Ayala’s Transportation and Power Business head, told reporters during the opening of financial bids on Tuesday.
The Department of Transportation and Communications will still have to evaluate the financial bids, but Ayala “should have no problems with the requirements” during the assessment, said Reyes.
The project is next to ALI’s ARCA South,a integrated mixed-use estate the company is developing.
“Construction will begin by May 2016 and is expected to be completed and ready for operation by October 2017,” Ayala Land said.
Of the four qualified bidders that also include Megawide Construction Corp. and Datem Inc., only Ayala Land and Filinvest actually submitted bids for the project.
The South Terminal will connect passengers coming from Laguna and Batangas to other transport systems such as the future North-South Commuter Railway project, city bus, taxi, and other public utility vehicles that are serving inner Metro Manila, according to the PPP Center.
“The project will include passenger terminal buildings, arrival and departure bays, public information systems, ticketing and baggage handling facilities, and park-ride facilities,” it added.
The private partner will design, construct and finance the ITS South Terminal, as well as operate and maintain the whole facility. The concessionaire may also undertake and collect revenues from a separate commercial development.
“Projects like this would actually help even their other businesses because when you provide a lot of foot traffic for instance and vehicular traffic to a particular location, then it enhances whatever facilities that they might have available for the consumer,”Jose Perpetuo Lotilla, DOTC undersecretary for legal affairs, told reporters.
The government aims to award the project within the third quarter of the year. Construction will then start by the second quarter of 2016 in time for the scheduled opening of the terminal in December 2017.”We expect the project to be financially and commercially viable for us. I think the constributions from this project will be… when the commercial development is finished and also when provincial buses really start plying this route,” Reyes said. – with a report by Jon Viktor Cabuenas/VS, GMA News