MRT-3, LRT-2 may be bid out separately – DOTr

MANILA, Philippines — The Department of Transportation (DOTr) may no longer pursue its initial plan of privatizing the operations and maintenance of the Light Rail Transit Line 2 (LRT-2) jointly with the Metro Rail Transit Line 3 (MRT-3).

The DOTr is having second thoughts on whether it should bid out the concessions for the MRT-3 and LRT-2 as one package as earlier planned.

Transportation Undersecretary Jeremy Regino said it might be premature to turn over the LRT-2 to the private sector, as the government has yet to stretch out the railway to its fullest potential.

The DOTr has yet to secure funding for the P10.12 billion expansion of the LRT-2 to the west of the Recto Station, called the LRT-2 West Extension Project. If undertaken, the project will build stops in Tutuban, Divisoria and Pier 4, serving the commuting demands to the western end of the metro.

Apart from this, the DOTr is working on extending the LRT-2 to the Rizal side. The project will expand the railway by three stations to the east of the Antipolo Station, reaching Cogeo, to ease the passenger volume that builds up in its current terminus.

“Bundling might be inappropriate this time (for MRT-3 and LRT-2) because they have a different market and we need to rehabilitate and expand LRT-2,” Regino said.

“We have to expand it (LRT-2) to the west going to the Manila South Harbor and expand it to the east to Cogeo to cater to the eastern part of Metro Manila,” he added.

Regino also recognized that the MRT-3 and LRT-2 may require distinct approaches in privatizing their operations and maintenance, demanding the DOTr to bid them separately.

Earlier, the DOTr was eyeing to package the concessions for MRT-3 and LRT-2 as one. The agency wanted to take advantage of the private sector interest in the MRT-3, a railway eyed by some of the largest infrastructure builders like the Metro Pacific Group and San Miguel Corp.

However, bundling the MRT-3 and LRT-2 will require the government to overhaul the organizational structure of its rail lines. The DOTr may have to transfer the regulation of the MRT-3 to the Light Rail Transit Authority, which owns and operates the LRT-2.

Regino said the DOTr would firm up a decision on whether it will package the concessions of the MRT-3 and LRT-2 by the end of the year.

The DOTr is looking for private firms interested in operating and maintaining the MRT-3, as the railway will be handed over to the government by the Metro Rail Transit Corp. by the end of its build-lease-transfer contract in 2025.