LRT-2 maintenance deal up for bidding

By Elijah Felice Rosales | The Philippine Star
April 20, 2023

MANILA, Philippines — The government will bid out the three-year, P900-million contract to maintain the Light Rail Transit Line 2 (LRT-2), as it moves forward with its plan to privatize the operations of the rail line.

In an invitation to bid, the Light Rail Transit Authority (LRTA) said it is looking for a contractor to deliver maintenance and janitorial services for LRT-2 for three years.

The LRTA has allocated a total of P893 million for the maintenance deal to be sourced from the General Appropriations Act of 2023.

As part of the agreement, the contractor will be tasked to manage the rolling stock of LRT-2 and provide repair and reconditioning for the units. It will also handle yard management duties such as train dispatching, driving and reception.

The contractor will be mandated to do preventive and corrective maintenance for the tracks and permanent ways, power supply and substation, overhead catenary system, and signaling and telecom system. It will also repair and test the equipment in the electronics laboratory.

The contractor will be assigned to ensure the cleanliness of the LRT-2 depot, equipment rooms, revenue stations and train sets.

The LRTA asked bidders to submit at least 14 documents indicating their plans for maintenance, policy and procedure, emergency response, security, loss prevention, among others.

Further, the LRTA said that subcontracting any of the work required is prohibited and expects the winning bidder to maximize local hires and minimize foreign staff.

As a protocol, bidders must settle the five percent surety bond amounting to P44.65 million and the two percent bank draft worth P17.86 million. They must also pay P75,000 to acquire the bid documents needed for the tender.

Based on the invitation, the LRTA will conduct a pre-bid conference on April 26 to respond to all of the questions that prospective bidders may have. Bidders must file their proposals by May 10, as the LRTA will open all of the bids on the same day.

Under the Marcos administration, the Department of Transportation (DOTr) aims to privatize the operations and maintenance of LRT-2 similar to Light Rail Transit Line 1, which is managed by Pangilinan-led Light Rail Manila Corp.

The DOTr is waiting for the build-lease-transfer contract of the Metro Rail Transit Line 3 to end in 2025, as it plans to bundle that railway with LRT-2 in a privatization package.