MPIC seen to complete tech review of MRT-3 this month

MANILA, Philippines — The Department of Transportation (DOTr) expects Metro Pacific Investments Corp. (MPIC) to complete its technical due diligence for its unsolicited proposal for the Metro Rail Transit Line 3 (MRT-3) this month.

“We expect the technical due diligence to be completed by end January,” Timothy Batan, officer-in-charge undersecretary for railways at the DOTr said in a press conference.

He said MPIC would need to complete the technical due diligence before DOTr could endorse the proposal to NEDA.

“Our current trajectory is to endorse after that happens because the condition of the system will affect their capex assumptions, will affect rate of return, will affect a lot of components of their financial model. What we will endorse to NEDA is a recommendation for a reasonable rate of return,” he said.

MPIC chairman Manuel V. Pangilinan said the infrastructure conglomerate is currently undertaking its technical due diligence.

“That’s part of the scope of what we are doing and I think our own due diligence should be finished quite soon,” he said.

MPIC, through Metro Pacific Light Rail Corp., has submitted a proposal to rehabilitate, as well as operate and maintain the MRT-3 for 30 years.

It offered to invest P12.5 billion for the rehabilitation of the train system and not to raise fares for at least two years.

The government has given original proponent status to MPIC for its proposal which means it would have the right to match the best offer given by another group for the project under a Swiss challenge.