A property unit of Ayala Corp/ yesterday outbid Filinvest Land Inc. in the auction for the P 4-billion Integrated Terminal (ITS) project after it submitted the lowest amount of subsidy that the government will pay.
Ayala Land Inc. offered P277.89 million annual grantor payments (AGP) better than Filinvest’s P1 billion bid offer .
“The government welcomes the lowest bid amount because that’s the amount that is going to be paid by the government for this particular service,” said Jose Perpetuo Lotilla, undersecretary of the Department of Transportation and Communication.
AGP are payments to be made by the government to the concessionaire.
Lotilla said government is expected to issue the notice of award to Ayala Land within this month.
The DOTC aims to award the project in the third quarter. Construction will begin by the second quarter of 2016, while the terminal is set to open in December 2017.
“We have a good deal. A .project like this would actually help even their other businesses because when you provide foot traffic and vehicular traffic in a particular location, it enhances whatever facilities that they might have for the consuming public,” Lotilla said.
Alfonso Javier Reyes, head of the Transportation and Power Business-ALI-Capital said, said the company expects the project to be financially and commercially viable as it would complement Ayala Land’s real estate project in the South .
“This is an important project for us because we’re developing ARCA South. We feel this a very strategic project for the country to help declog Metro Manila,” Reyes said.
He added the terminal capacity would reach up to 4,000 buses a day that would serve anywhere from 150,000 to 180,000 passengers a day.
The winning bidder will take care of the design, construction, and operations and maintenance (O&M) of the terminal for a concession period of 35 years.
The project covers the construction of terminal within 4.7 hectare lot along FTI Compound, Taguig. It will connect passengers coming from the South, specifically the Batangas and Laguna area, to other public utility vehicles that are serving inner Metro Manila. It involves construction of arrival and departure bays, public information systems, ticketing and baggage facilities and park-ride facilities.