Ayala, MPIC ready rail firm
CONGLOMERATES Ayala Corp. and Metro Pacific Investments Corp. (MPIC) have begun setting up a joint venture that will bid for the expansion and operation of Metro Manila’s Light Rail Transit Line 1 (LRT-1).
“Light Rail Manila Holdings, the MPIC and Ayala joint venture, will submit for the project,” said Melody M. Del Rosario, MPIC vice-president for corporate communications.
“The application is still pending submission to the SEC,” Ms. Del Rosario added, noting that the partnership would vie for all rail projects that are set to be auctioned off by the government under its public-private partnership (PPP) program.
Ayala Managing Director Eric T. Francia also confirmed that Light Rail Manila Holdings would be business entity to be used for the LRT-1 project, pre-qualification for which is set for August.
“It is still in the process of incorporation,” Mr. Francia said. “[It will be incorporated] within a month.”
An expansion like this which will connect Cavite to Metro Manila will surely help for those commuting from Cavite. Mass Rail Transit has been one of the solution to solve problems like high transportation cost, crowded urban area since those who usually stay in Manila for the week and go home in the weekends will now live the whole week in their home in the province, and the problems connected with overpopulation in an area will be resolve.
For the two companies, it will surely benefit both because they are pooling in each others expertise in the transportation industry. And that will surely add to the two companies values making them one of the most coveted stocks.