DOTr gives original proponent status to MPIC-Ayala group for MRT-3 rehab

MANILA, Philippines — The Department of Transportation (DOTr) has given original proponent status to the group of Metro Pacific Investments Corp. (MPIC) and Ayala Corp. for the rehabilitation as well as operations and maintenance of the Metro Rail Transit Line 3 (MRT-3).

DOTr Secretary Arthur Tugade told reporters the agency has granted the group of MPIC and Ayala the original proponent status for the rehab, operations and maintenance of the MRT-3.

“This does not mean, however, that the proposal is approved. This means, there will be discussions, we have to come up with an agreement, submit it to NEDA and once approved by the NEDA and the President, there will be a Swiss challenge,” he said.

Late last month,  Light Rail Manila Corp. (LRMC) president and chief executive officer Rogelio Singson said the group of MPIC and Ayala plans to take over the operations of the MRT-3 within six months as it hopes to  be given the original proponent status (OPS) to rehabilitate, operate and maintain the train system.

“Once you’re given OPS, the government can go through a Swiss challenge. Whoever wants to offer a similar proposal, there is a period, 90 days or maybe 120 days under existing rules that they have to go through a challenge and hopefully, if there is a challenge and there is a decision, the best proposal comes out by the first quarter of next year. It could be as soon as four to six months that there would be a new operator,” Singnson said.

The group submitted the proposal to the government last July 14.

The proposal, which involves an investment of P12 billion to rehabilitate the train system without any fare increase for at least two years, as well as the handling of operations for a period of 30 to 32 years, has been presented to both Tugade and Finance Secretary Carlos Dominguez.

Singson said the proposal also includes resolving issues on the MRT-3 including the buy out of 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.

Should the group be awarded the concession for the MRT-3, Singson said the rehabilitation, operations and maintenance would be pursued through a separate special purpose vehicle with likely the same ownership as LRMC.

LRMC, the current operator of the Light Rail Transit Line 1, which runs from Roosevelt station in Quezon City to Baclaran station in Parañaque, is composed of MPIC’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp. and Macquarie Infrastructure Holdings (Philippines) PTE Ltd.