The Department of Transportation (DOTR) is currently reviewing an unsolicited proposal submitted by Metro Pacific Investments Corp. (MPIC) to take over the operations and maintenance (O&M) of the Metro Rail Transit (MRT) Line 3 system.
Transportation Undersecretary for Railways, Cesar Chaves said they would evaluate MPIC’s proposal in accordance with the guidelines for unsolicited public-private partnership (PPP) projects.
MPIC, in collaboration with Japan’s Sumitomo Corp., submitted their proposal earlier this month. It initially submitted a proposal to the Transportation Department back in 2011 but it was rejected by the Aquino administration, which instead chose to pursue an equity value buyout of MRT 3, costing $523 million.
Despite this, the government’s plans faced challenges as Congress did not approve the P53.9-billion allocation in the 2015 budget, halting the government’s takeover of the MRT.
Subsequently, during the Duterte administration, MPIC presented a new unsolicited offer for MRT3. However, this proposal was also rejected as the government decided to proceed with the rehabilitation independently.
Chavez has indicated that the agency is contemplating bundling the O&M of MRT 3 and Light Rail Transit (LRT) Line 2 when these two rail systems are privatized, potentially as early as 2025. This could represent a significant shift in the management of these crucial transportation assets.
The build-lease-transfer (BLT) agreement between the government and Metro Rail Transit Corp. is set to expire by 2025. Currently, the government operates MRT3, while the Metro Rail Transit Corp., led by businessman Robert John Sobrepeña, is responsible for the design and construction of the EDSA rail transit system.