Metro Pacific’s bid for MRT3 and LRT1 integration gets PPP center backing

The Public-Private Partnership (PPP) Center has endorsed Metro Pacific Investments Corp.’s unsolicited proposal to integrate operations between Metro Rail Transit Line 3 (MRT3) and Light Rail Transit Line 1 (LRT-1) to the Department of Transportation (DOTr).

The DOTr, led by Secretary Jimmy Bautista, will conduct a thorough review and evaluation of the proposal to decide whether to accept it or opt for an open bidding process.

A Bilyonaryo.com source said MPC is hoping for a quick approval of its unsolicited proposal

The government is seeking a new operator for MRT-3 as its contract with the Sobrepeña-led Metro Rail Transit Corp. nears expiration.

Integration of LRT-1 and MRT-3 could potentially reduce traffic volume on EDSA by 23% and swiftly increase capacity, the source said.

The integration of LRT-1 and MRT-3 operations hinges on approval of the unsolicited proposal, according to the source.

Furthermore, the source said that accepting MPIC’s proposal would consolidate control under a single shareholder for both MRT3 and LRT1, with Metro Pacific controlling Light Rail Manila Corp., the operator of LRT-1.

MPIC’s unsolicited proposal aims to implement seamless through-train operations, linking MRT3 and LRT-1 to improve passenger convenience, reduce travel time and costs, and alleviate congestion along EDSA and the combined alignment.

Key advantages of the proposal include in-depth technical and institutional knowledge of the MRT3 system, bolstered by Sumitomo’s extensive experience as an EPC contractor and maintenance provider from 2000 to 2012, and current role until 2025.

Sumitomo’s robust maintenance capabilities and supply chain ensure critical spare parts availability, particularly for CKD and Dalian trains, facilitating smooth integration with LRT-1.

Moreover, the unsolicited proposal offers a shorter lead time for approval compared to solicited tenders, which require additional time for conceptualization, technical due diligence, and scope definition.

Acceptance of the proposal would promptly cease the existing maintenance contract, saving the government monthly costs and eliminating the annual P1.3 billion subsidy to MRT3. It would also expedite concession payments, obviating the need for funding extensive system upgrades or replacements during the concession period.

The resolution of issues involving the 48 Dalian LRVs is another benefit, enabling immediate plans for their commercial use to boost transport capacity and mitigate EDSA traffic.

Sumitomo’s exclusive supply of critical spare parts for the existing 72 CKD LRVs extends their operational life beyond the current rehabilitation period, aligning with the planned retirement starting in 2035 and corresponding fleet replacement.

ALSO READ:

DOTr eyes private management for MRT-3 by early 2025

DOTR evaluates MVP Group’s  takeover offer for MRT-3

Unlocking opportunities: Government to bid out MRT Line 3 O&M

Subscribe to

Stay in the know with Bilyonaryo’s unparalleled coverage of business news and global industries!

Elevate your understanding of the Philippine business landscape and gain insights into worldwide markets by subscribing to our dedicated channels. Receive breaking news, in-depth analyses, and exclusive interviews with industry leaders directly on Viber, WhatsApp, and Facebook. Stay informed and empowered with our Email Newsletter, delivering curated content right to your inbox.

Don’t miss out on crucial updates and trends shaping economies and businesses both locally and internationally.

Join Bilyonaryo’s community today by clicking the button below to subscribe and stay ahead in the dynamic world of business.

Share this Bilyonaryo story