Bidding for MRT-3 eyed by early 2025

MANILA, Philippines — The Department of Transportation (DOTr) plans to bid out the concession for the operations and maintenance of the Metro Rail Transit Line 3 (MRT-3) by the first quarter of 2025.

Transportation Secretary Jaime Bautista told reporters his agency eyes to complete the terms of reference for the public-private partnership (PPP) project of MRT-3 within the year.

Providing more details, Transportation Undersecretary Timothy John Batan said the DOTr plans to open the bidding for the railway by the first quarter of 2025.

“From the DOTr, we continue to develop our solicited PPP MRT-3 project. We are being assisted by the Asian Development Bank, [and] first quarter of 2025 is our target,” Batan said.

The DOTr is looking for a new operator for the MRT-3, as the contract with Sobrepena-led Metro Rail Transit Corp. will expire in 2025. Some of the biggest conglomerates such as San Miguel Corp. (SMC) and Metro Pacific Investments Corp. (MPIC) are interested in taking over the railway.

Both SMC and MPIC pitched unsolicited proposals to operate and maintain the MRT-3, but the DOTr, as expected under the leadership of Bautista, intends to do an open bidding.

Similar to what happened to the Ninoy Aquino International Airport (NAIA), Bautista has shown an inclination for solicited bidding, as it gives the government the power to set the terms.

In the case of NAIA, for example, the DOTr chose to conduct an open bidding for its operations and maintenance even though it had received a P267 billion proposal from a consortium of local and foreign conglomerates.

For the MRT-3, Bautista said one of the main issues in crafting the PPP terms is how to make the railway an attractive project. He noted the profit challenges in running the MRT-3, understanding that the government would have to keep on sharing in the cost of management.

For SMC and MPIC, however, it is crucial to control the MRT-3 to integrate their rail business in the metro. MPIC holds a majority stake in the operator of the Light Rail Transit Line 1 (LRT-1), while SMC is putting up the Metro Rail Transit Line 7 (MRT-7) that will run from Quezon City to Bulacan.

The MRT-3 will connect to the LRT-1 and MRT-7 as soon as the government completes the civil works for the Unified Grand Central Station.

In January, MPIC chairman Manuel V. Pangilinan expressed his willingness to join hands with fellow tycoon Ramon Ang in bidding for the MRT-3.