DOTr readies LRT-2 PPP bid

The Department of Transportation (DOTr) is expected to soon submit its solicited bidding proposal for the operations and maintenance (O&M) of Light Rail Transit Line 2 (LRT-2) to government scrutiny, as part of a broader privatization effort in the country's railways.

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Transportation Undersecretary Timothy John Batan said on Tuesday, Sept. 23, that the feasibility study for the privatization of LRT-2 through public-private partnership (PPP) will be completed within “the next few weeks.”

The DOTr earlier tapped International Finance Corp. (IFC) as transaction adviser in the PPP deal, tasked to craft the guidelines and terms of reference (TOR) for the bidding process.

IFC, the Washington-based World Bank Group's (WBG) private-sector lending arm, is also in talks with companies that have expressed interest in the project.

Once the feasibility study is completed, Batan said the DOTr will be able to submit the proposed bidding scheme for LRT-2 to the Department of Economy, Planning, and Development (DEPDev) for appraisal.

Under the law, DEPDev reviews the technical, financial, economic, social, and environmental aspects of projects submitted for evaluation, taking into account their potential impact on development.