Still no plans for MRT-3 after MPIC offer rejected

MANILA, Philippines — The government has yet to come up with a decision on what direction to take for the Metro Rail Transit Line 3 (MRT-3) after rejecting the unsolicited proposal of Metro Pacific Investments Corp. (MPIC) to take over the operations of the rail system.

Transportation Undersecretary for rails Timothy John Batan said the agency is still exploring options for the operations and maintenance of the MRT-3 once its current Japanese providers complete their contract.

MPIC president and chief executive officer  Jose Ma. Lim said earlier their proposal has already been returned by the government despite the company being declared as the original proponent for the project.

In 2017, MPIC was granted the original proponent status (OPS) for rehabilitation as well as operations and maintenance of the MRT-3 by the Department of Transportation (DOTr).

The OPS would have given the group the right to match an offer given by another group via a Swiss challenge.

Asked on why the government decided to officially turn down MPIC’s proposal, Batan cited the developments that have transpired involving the rail system.

“I guess it’s because of the condition of the system from the time they originally submitted in 2017. Their original submission included the full rehabilitation, which Sumitomo is now doing,” Batan said.

The DOTr has decided to tap the services of Japan’s Sumitomo and Mitsubishi Heavy Industries to return as the rehabilitation and maintenance service provider of the train system.

The 43-month rehabilitation and maintenance contract signed with the Japanese firms in December 2018 covers the entire 16.9-kilometer line, all its 13 stations, all remaining 72 light rail vehicles, and the MRT-3 Depot on North Avenue, Quezon City.

MPIC was earlier considering to reconfigure its unsolicited proposal given the return of the Japanese firms for the train system’s rehabilitation works.

MPIC chairman Manuel V. Pangilinan, however, said last year the group was willing to give up its OPS for its unsolicited proposal for the MRT-3 should the project become unviable for the group following the government’s new direction.

Transportation Secretary Arthur Tugade in an interview in October 2018 first made known what seemed to be a change in direction from the government with regard to the MRT-3, saying then that he intends to make the project a solicited proposal amid an existing unsolicited proposal from the private group.

MRT-3, which covers North Ave. station in Quezon City until Taft station in Pasay City, started operating in 2000. Its first round of general overhaul was completed by Sumitomo in 2008.

With the train system’s original designer, builder, and maintenance provider during its first 12 years of operations back, the DOTr has vowed to fix and restore the MRT-3 to its original and high-grade design state by the third quarter of 2021.