Gov’t to bid out MRT-3 operations

MANILA, Philippines — The Department of Transportation (DOTr) intends to bid out the contract for the operations of the Metro Rail Transit Line 3 (MRT-3) amid an existing unsolicited proposal from Metro Pacific Investments Corp. (MPIC).

“I will make that a solicited proposal, and not an unsolicited proposal,” Transportation Secretary Arthur Tugade said.

Tugade, however, said the new direction does not mean that the government is rejecting MPIC’s unsolicited proposal.

“What we’re saying is let us change it. Let us make it solicited,” he added.

MPIC, in partnership with Ayala Corp. and Macquarie Infrastructure Holdings (Philippines) Pte Ltd., was granted original proponent status by the DOTr last year for its proposal to rehabilitate, operate, and maintain the MRT-3 for 30 years.

The Pangilinan-run company also offered to buy out the government’s stake held by Land Bank of the Philippines and Development Bank of the Philippines as well as other shareholders in Metro Rail Transit Corp. or the private owner of the train system.

Under the unsolicited proposal, MPIC will not raise fares for at least two years.

Being granted OPS means MPIC has the right to match an offer given by another group via a Swiss challenge.

The proposed investment for the project is P20 billion.

“Well let’s see. It might be that the bid out is on the basis of what we submitted, and anyway that would be subject to a Swiss challenge,“ MPIC chief financial officer David Nicol said.

Having a single-point-of-responsibility for the operations and maintenance of the MRT-3 for the long term is among the strategies of the DOTr for improving the railway spanning North Ave. station in Quezon City until Taft station in Pasay City.