The AF Consortium, composed of Ayala Corporation and Metro Pacific Investments, has submitted the lowest bid for the Automatic Fare Collection System (AFCS) project of the Philippine Department of Transportation and Communications (DOTC). AF will pay the government P1.088 billion (US$24.6 million) beating two other bidders.

The project includes the design, installation and construction of the new Automatic Fare Collection System for Manila's LRT 1, LRT 2 and MRT 3; its maintenance for period of 10 years beginning full systems acceptance; provision of contactless media or tickets; and the operation of the AFCS Central Clearing House.

The project has an estimated investment of US$39 million.

The  Automatic Fare Collection System project aims to introduce smart card-based technology initially for the three light rail systems, and eventually to other modes of mass transportation. It will upgrade the Light Rail Transit  and Metro Rail Transit  ticketing scheme to a tap-and-go system, which will substantially lessen queuing time and allow seamless transfers from one rail line to another.

The AF Consortium could not be declared the winning bidder yet because the Bids and Awards Committee (BAC) of the DOTC has to evaluate its proposal for 15 days. On December 23 or 24, the agency will announce the winning bidder.

The target issuance of notice to award is scheduled on the first week of January next year while the target contract signing is set late January.

The Department of Transportation and Communications had earlier disqualified E-Trans Solutions joint venture and the Megawide-Suyen-Eurolink consortium.

• E-Trans Solutions was disqualified because its technical proposal did not describe the required conditions for use of the project, which would protect the card user's data privacy and it was also found to be incomplete, unclear and did not show compliance with the project's scheme provider principles.

• Megawide-Suyen-Eurolink was disqualified because its business plan was found to be incomplete and inconsistent  and it did not contain the required project internal rate of return, making it impossible to evaluate the project's feasibility.