MPIC bucks government plan to bid out MRT 3

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC), the local flagship of Hong Kong-based industrial conglomerate First Pacific Co. Ltd., has raised a howl over the government’s decision to bid out the contract to operate and develop the Metro Rail Transit Line 3 or MRT 3 along EDSA, citing its rights as a stakeholder in the firm that operates the electric train system.

In a disclosure to the stock exchange, Jose Jesus G. Laurel, MPIC vice-president for legal affairs, said the private shareholders of Metro Rail Transit Corp. (MRTC) have the legal right to assert their rights over the maintenance of the railway as well as the expansion rights over MRT as contained in the existing build-lease-transfer (BLT) agreement with the government.

“MRTC’s expansion rights under the BLT agreement prevent the government from bidding the MRT 3 capacity expansion project. MPIC expects the government to honor MRTC’s rights under the BLT agreement,” Laurel said.

Transportation Secretary Manuel Roxas earlier said subjecting the railway system through an open competitive bidding would ensure that the government would get the best deal possible.

MPIC now controls about 64.07 percent of MRTC after acquiring the 28.04 percent interest of the Sobrepeña-led Fil-Estate Group as well as the interest of other shareholders such as Anglo Philippine Holdings Inc., DBH Inc and Railco Investment Inc.

It has offered to put in $300 million to expand the railway’s capacity to 700,000 passenger a day. The budget would also cover additional light railway vehicles, signaling system upgrades, station and depot improvements.

Earlier, food-to-infrastructure conglomerate San Miguel Corp. and corporate giant Ayala Corp. have expressed interest in taking over MRT 3.