DoTr eyes PPP for LRT-2, MRT-3

As the Department of Transportation (DoTr) looks into modernizing the country’s railway system, the agency is considering placing the Light Rail Transit Line 2 (LRT-2) and the Metro Rail Transit Line 3 (MRT-3) under a public-private partnership (PPP).

In a Palace press briefing on Thursday, Transportation Secretary Vince Dizon said the bidding for the PPP scheme for LRT-2 may start this year, with advice from the International Finance Corp. (IFC) of the World Bank.

“We have a plan to enter LRT-2 in a PPP next year. As far as I know, we have already talked to the IFC and the World Bank, our advisers there. As far as I know, within the year, we will be able to start the process because we will bid it out as a PPP,” he said.

MRT-3 may also be placed under a separate PPP scheme, assisted by the Asian Development Bank. However, no specific date has been given.

President Ferdinand Marcos Jr. has approved placing both rail systems under PPP arrangements to provide improved service to the riding public.

“The PPP is one of our President’s very important programs. He really wants our infrastructure to be PPP, especially operations and maintenance, because he believes — we believe — that it will bring better services to our countrymen,” Dizon said.

He added that a PPP would serve as a long-term solution to the problems experienced by the LRT-2 and MRT-3.

Recently, the LRT-2 suffered a nearly five-hour service interruption between the Araneta Center Cubao Station and the Antipolo Station, affecting workers and other commuters.

“Many of our countrymen were a bit late, didn’t get to ride the train, and we apologize to them,” Dizon said.

The transportation chief explained that the government’s capability is limited when it serves as the operator of the transit lines.

“While the government operates it, we are limited by budget; we are also limited by our procurement rules,” Dizon said.

“That means our ability to fix these systems is not that fast, so that’s really the ultimate solution,” he added, referring to the PPP scheme.

Dizon stressed that even under a PPP, the government would retain the power to regulate fare increases.

Government fare promotional programs, such as the Pamilya Pass 1+3 and the 50-percent discount for students, would not be affected as they are covered by a designated budget within the department.

The LRT-2 runs from Masinag in Antipolo to Recto in Manila, while MRT-3 operates from North Avenue in Quezon City to Taft Avenue in Pasay City.

LRT Line 1, which runs from Dr. A. Santos Avenue in Parañaque to Fernando Poe Jr. (formerly Roosevelt) Station in Quezon City, is already operated by a private company.