Giant tandem eyes MRT-3 takeover

Giant tandem eyes MRT-3 takeover | Daily Tribune

Infrastructure conglomerate Metro Pacific Investment Corp., or MPIC, is still keen on participating in the solicited bidding for the privatization of the operations and maintenance, or O&M, of the Metro Rail Transit Line 1, or MRT-3.

However, this time, MPIC chairperson and president Manuel V. Pangilinan revealed that making a joint bid with San Miguel Corp., or SMC, could be a more attractive path for the company to take.

“In principle, because we submitted an unsolicited proposal and the government has decided to bid it out, we will likely participate depending on the terms,” Pangilinan told reporters.

“I think it might be good for us to reach out to SMC and see what we can do. We can submit a joint bid, right? There are ongoing discussions in other areas with them, in terms of partnerships,” he added.

Both MPIC and SMC submitted their respective unsolicited bids to take over the O&M of the MRT-3. However, the Department of Transportation, or DoTr, said it will pursue a solicited bidding for the train line, instead.

Last year, the toll road arm of MPIC, Metro Pacific Tollways Corp., signed a historic deal with SMC to jointly construct the Cavite-Batangas Expressway and the Nasugbu-Bauan Expressway with a combined cost of P72 billion.

TOR up for release

Relatedly, Transportation Secretary Jaime J. Bautista earlier told reporters that his agency intends to release the terms of reference, or TOR, for the privatization of the railway right after its build-lease-transfer, or BLT, contract ends.

Under the current agreement, the Metro Rail Transit Corp. maintains the train line and its cars, while the DoTr oversees the fare collection.

“It is still being finalized and the BLT of the MRT-3 will be completed by 2025. The plan is to have it also privatized like the LRT-1, which is now operated by the private sector. We prefer it to be solicited and we are working now on the terms of reference,” Bautista said.

In response to the inquiry on why the government prefers the solicited route, Bautista replied: “(This way,) the terms will be the terms of the government. We should implement it by July 2025 and we are getting ready.”

The DoTr projected that privatizing the management and operations of the MRT-3 will lower its operational expenses, which will allow the operator to maintain affordable fares.

The government subsidizes the operations of the railway systems, which include the Light Rail Transit Lines 1 and 2 and MRT-3, to ensure that fares remain affordable.

MRT-3 has 13 stations that pass through Quezon City, Mandaluyong, Makati and Manila. Initially, it was designed to carry over 23,000 passengers per hour in each direction, but it can expand to accommodate up to 48,000 passengers per hour, per direction.