In an official statement released to the press, DOTr Secretary Arthur Tugade said he sat down with top honchos of ALI to forgo the PhP 277 million AGP, which is supposed to be paid on a yearly basis for 35 years.
“Let’s find ways how we can stop the practice and paradigm of government paying the private sector royalty grounds as they operate terminals. Under the contract, the government should pay PhP 277 million for the next 35 years,” Secretary Tugade said.
Tugade explained that the DOTr has engaged in a discussion with ALI since last year, where they were able to come up with a win-win solution that will ultimately benefit the Filipino people. There were two things agreed upon, the P277 million per year for the next 35 years will no longer be paid, saving the government at least P9 billion cashout annually; and two, from the start of its commercial operation, until the end of the concession agreement, ALI will share 2% of their income from the commercial spaces in favor of the government.
The Taguig ITX is considered as one of the big-ticket infrastructure projecs of the Duterte administration in partnership with the private sector, aimed at further decongesting vehicular trffic in Metro Manila’s main thoroughfare, EDSA.
During the ceremony, the transportation head was joined by other members of the BUILDBUILDBUILD Team including DPWH Secretary Mark Villar and BCDA President and CEO Vince Dizon.
Taguig ITX project, done in partnership with ALI., will be a 6-storey building on a 5.57 hectare property inside the FTI compound which would house passenger concourse, a centralized ticketing area and several business and retail establishments.
The project will also have a provision for 1,200 public utility buses and vehicles’ bays and parking. Upon its completion, Taguig ITX is expected to house around 4,000 buses and accommodate 160,000 passengers daily. It will also feature a pedestrian walkway connection to the PNR FTI station and the proposed subway system.
According to DOTr, the Taguig IXT will cater to all provincial buses plying the south of Luzon, Visayas and Mindandao destinations. The construction of the big-ticket project would start by the 2nd half of 2018 and is expected to start operation by 1st half of 2020.