MPIC proposes to integrate operations of MRT-3, LRT-1

MANILA, Philippines — Conglomerate Metro Pacific Investments Corp. (MPIC) plans to pour in at least P50 billion to operate the country’s two major commuter rail system in an integrated manner.

Jose Ma. Lim, MPIC non-executive director and former president and CEO of the group, told The STAR in an interview that the company has submitted an unsolicited proposal for the integration of the Metro Rail Transit Line 3 (MRT-3) and the Light Rail Transit Line 1 (LRT-1).

“The purpose is to operate MRT-3 and LRT-1 in an integrated manner. So that was the motivation for us, so we submitted a proposal,” he said.

Lim said the proposal is divided into two parts, with capital expenditure requirements for the first tranche seen at about P50 billion.

“And we will of course take over the Dalian trains, the MRT trains, and add I think the 77 light rail vehicles (LRVs), the train sets,” he said.

According to Lim, the unsolicited proposal was resubmitted to the Public-Private Partnership (PPP) Center about two weeks ago.

“So we’re waiting for the PPP to tell us whether the proposal is complete or not,” he said.

MPIC holds a majority stake in Light Rail Manila Corp. (LRMC), the operator of the LRT-1.

The LRT-1 Cavite Extension Phase 1 is on track for its target commercial opening in the fourth quarter of the year.

The project will add 6.2 kilometers to the existing LRT-1 line from Baclaran Station in Pasay to Dr. Santos Station in Parañaque, significantly improving the connectivity of southern Metro Manila.

The remaining portions of the LRT-1 Cavite Extension project will cover three more stations spanning 5.6 kilometers which are targeted for completion by 2031.

MPIC earlier submitted an unsolicited proposal to operate and maintain the MRT-3, but was rejected by the Department of Transportation (DOTr) which prefers for a solicited scheme. The railway runs in an orbital north to south route following the alignment of EDSA.

With the government’s contract with Sobrepeña-led Metro Rail Transit Corp. set to expire in 2025, the DOTr is looking for a new operator for the MRT-3.

MPIC chairman Manuel V. Pangilinan earlier said he is willing to partner with San Miguel Corp. (SMC) of tycoon Ramon Ang in bidding for the MRT-3.

SMC  is building the Metro Rail Transit Line 7 (MRT-7) that will run from Quezon City to Bulacan.

SMC has also previously submitted an unsolicited proposal for the operations and maintenance contract of the MRT-3 and was granted an original proponent status.

Upon the completion of the Unified Grand Central Station, both LRT-1 and MRT-7 will connect to the MRT-3.

Aside from railway, MPIC is also into toll roads, power, water, hospitals, agribusiness and has also been expanding into tourism.

MPIC voluntarily delisted from the Philippine Stock Exchange and successfully reprivatized last year.