The Department of Transportation and Communications (DOTC) and the winning concessionaire signed the concession agreement for the South Integrated Transport System (ITS) on Tuesday.
The 35-year concession agreement with Arca South Integrated Terminal Inc., a wholly-owned subsidiary of Ayala Land Inc., was signed after the company fulfilled all the post-award requirements.
“Arca South submitted the lowest annual grantor payment at P277.9 million,” the DOTC said.
The grantor payment is what the government must pay the concessionaire for the PPP project, for each year of the concession agreement.
Competitor Filinvest Land Inc. wanted P1 billion a year from the government.
“With the South ITS connecting different modes of transportation and services, we can guarantee the public more efficient and seamless transfers. It will also improve traffic flow and reduce congestion in Metro Manila, as it will serve as a transfer point for provincial buses entering the metropolis,” DOTC Secretary Jun Abaya said.
South Arca will start building the terminal in September 2016.
According to the DOTC, the terminal will be the end-point for over 2,000 provincial buses currently entering Metro Manila daily.
That would effectively decongest the main thoroughfares of the metropolis, the department said. It will allow in-city public transport transfers, as railway lines, city buses, taxis, and other public utility vehicles servicing inner Metro Manila will be made available.
The terminal will occupy a 5.7-hectare property in the FTI Compound along SLEX, and will be connected to the North-South Railway Project.
Ayala Land’s Arca South won the financial bid for the project on August 11, 2015. – VS, GMA News – See more at: http://www.gmanetwork.com/news/story/552697/money/companies/dotc-ayala-land-unit-sign-p4-b-ppp-deal#sthash.vPLHiOYQ.dpuf