Government pursues MRT-3 buyout

MANILA, Philippines — The Department of Transportation and  Communications is now pursuing a buyout of the problematic Metro Rail Transit 3 (MRT-3) system and simultaneously implementing the much-needed improvement projects on the railway.

"Most of these projects will be completed in 2015 to 2016 under current timelines, which is why we are already pursuing them separately from the buyout," DOTC Secretary Jun Abaya said.

"We need to work together in the interest of MRT-3 riders. Government is still finalizing the details of its buyout plan, but we will bring this to the private owner as soon as it is completed. The buyout will pave the way for our long-term plans, which is intended to deliver not only a decent MRT-3 system to the public, but one that we can look forward to taking," he added.

In the past months, MRT-3 trains operations have been disrupted by various mechanical malfunctions,dis one of which resulted in injury to passengers.

Earlier this month, the DOTC created a transition team of engineers and staff of the MRT-3 Office and the Light Rail Transit Authority (LRTA) to closely monitor regular maintenance works.

The move aims to give government a direct role in ensuring safety requirements are met and protocols are properly followed on a daily basis.

Government's long-term plan for the MRT-3 is to implement an Equity Value Buy-Out (EVBO) of the system's private sector-owner Metro Rail Transit Corporation (MRTC) pursuant to the Build-Lease-Transfer Concession Agreement.

Under Executive Order 167, the DOTC and the Department of Finance (DOF) are tasked to implement the EVBO, to put an end to the ongoing arbitration case in Singapore between the DOTC and the MRTC.