Saturday, January 17, 2009 [ manilatimes.net ]
By Darwin G. Amojelar, Reporter
THE government is looking at a private investor to fund the Light Rail Transit Line 2 (LRT 2) east extension project as the Department of Transportation and Communication (DOTC) has no budget to implement the project, an official of the National Economic and Development Authority (NEDA) said.
Ruben Reinoso, NEDA assistant director general, said the government would offer the project to private investors to minimize state exposure to the project.
“The [DOTC] cannot accommodate the project. They have no budget to finance it,” he said.
The project was earlier approved by the NEDA for possible Japan Bank for International Cooperation (JBIC) financing, but this failed to push through.
The LRT 2 extension project involves the construction of a 4-kilometer eastern extension from the Santolan Station in Marikina City to Masinag Junction in Antipolo, Rizal.
The project was identified in the Metro Manila Urban Transport Integration Study as one of the priority components of the long-term master plan for transport development of the Arroyo administration.
When constructed, the Light Rail Transit Authority (LRTA) said the project would benefit the fast-growing communities of Marikina, Cainta and Antipolo, the latter being the fastest growing city in the entire Philippines, based on studies conducted by the National Statistics Office.
As of November, the LRT 2 carried 53.73 million passengers, exceeding the 52.93 million passengers registered in 2007.
In terms of revenue, the LRTA earned P674.30 million in the first 11 months of last year.
The existing Megatren, more popularly known by its generic name Line 2, is a 13.8-kilometer mass transit line that traverses five cities in Metro Manila namely Pasig, Marikina, Quezon, San Juan and Manila, along the major thoroughfares of Marcos Highway, Aurora Boulevard, Ramon Magsaysay Boulevard, Legarda and Recto Avenue.
The project was built at a cost of P31 billion in soft loans mainly from the JBIC. This was a concessional loan, with 2-percent interest for three packages, and payable in 30 years with a 10-year grace period.
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