SNC-Lavalin Signs Joint Venture Agreement for Light Rail
Transit Extension in the Philippines
VANCOUVER, BRITISH COLUMBIA--SEPTEMBER 7, 2000 - 09:22 EDT
SNC-Lavalin has announced that it has
signed a joint venture agreement with the Light Rail Transit
Authority (LRTA) of the Philippines. This is a major step toward
the implementation of a 12-km extension of the existing 14-km
light rail transit line in Manila. The project carries a capital
cost of approximately CDN$1.0 billion.
SNC-Lavalin will finance, design and construct the 12-km extension
southward. The Government of the Philippines, through the LRTA,
will provide use of existing facilities. The two parties will
jointly operate the system for 25 years. The existing LRT line
carries 450,000 passengers per day, and with the extension, is
expected to nearly double ridership. Financial closure is scheduled for 2001.
"This is an excellent example of innovation in public-private
partnerships," said Robert Tribe, Executive Vice-President of
SNC-Lavalin. Mr. Tribe signed the agreement in Manila with
Vincente C. Rivera, Jr., Secretary of the Department of
Transportation and Communications of the Philippines, in the
presence of Philippine President Joseph E. Estrada. "The public
sector is able to leverage its existing investments to finance new
infrastructure while the private sector can reduce its risks by
working with a revenue stream that is, in part, claimed from knownridership."
The project confirms SNC-Lavalin's leadership position in
infrastructure development through innovative financing and added
value engineering. Recently completed major projects in the mass
transit sector are the Kuala Lumpur light rail system in Malaysia
and the Ankara Metro system in Turkey.
SNC-Lavalin Group is one of the leading engineering and
construction firms in the world, and a key player in the ownership
and management of infrastructure. The group and its companies
have offices across Canada and in 30 other countries, and are
currently working in some 100 countries. The company is listed on
the Toronto Stock Exchange (symbol: SNC). |
