MPIC unlikely to pursue MRT-3 bid due to tariff concerns

Metro Pacific Investments Corp. (MPIC) is “unlikely” to resubmit its proposal to operate and maintain the Metro Rail Transit Line 3 (MRT-3), citing the lack of approved fare adjustments as a key challenge.

MPIC Chairman Manuel V. Pangilinan confirmed that the company had previously submitted an unsolicited proposal, but it has since expired.

"We submitted it, but I think it has already expired. I don't know where we were during the time of [former Transportation Secretary] Jaime Bautista, but I think that expired," he said in a recent interview.

With newly appointed Transportation Secretary Vivencio Dizon now in office, Pangilinan stated that MPIC has no immediate plans to refile the proposal.

“Not yet. Secretary Dizon is just new. For me, resubmission is unlikely — it's difficult because no tariffs are being approved,” he added.

The government currently subsidizes the operations of the metropolitan railway system — including MRT-3 — to keep fares affordable.

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

MPIC was among the private firms interested in taking over the aging MRT-3 system, but fare regulation and approval issues have created uncertainty around private sector participation.

Previously, MPIC had submitted an unsolicited proposal to integrate MRT-3 with Light Rail Transit Line 1 (LRT-1). MPIC holds a majority stake in Light Rail Manila Corp. (LRMC), the operator of LRT-1.

However, the Department of Transportation (DOTr) rejected MPIC’s earlier proposal to operate and maintain MRT-3, favoring a solicited bidding process instead. The railway runs along EDSA in a north-south alignment.

With the government’s contract with the Sobrepeña-led Metro Rail Transit Corp. set to expire this year, the DOTr is seeking a new operator for MRT-3 but has yet to finalize the bidding terms.

MPIC had also expressed willingness to partner with San Miguel Corp. (SMC) in a potential bid. SMC, which is constructing MRT-7 from Quezon City to Bulacan, had also submitted an unsolicited proposal for MRT-3’s operations and maintenance and was granted original proponent status.