DOTr eyes PPPs for rail system

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

In a Palace press briefing on Thursday, DoTr Secretary Vince Dizon said that 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.

The MRT Line 3 is also planned to be placed in a separate PPP scheme, assisted by the Asian Development Bank, however, no specific date has been given.

Marcos has approved the placement of the two rail systems under PPP schemes to provide more 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 PPP would serve as the long-term solution to the problems experienced by the LRT-2 and MRT-3.

Recently, the LRT-2 suffered an almost 5-hour service interruption from the Araneta Center Cubao station to 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 reach is limited if it remains to be 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 stressed, referring to the PPP scheme.

Dizon maintains that if the LRT-2 and the MRT-3 enters into a PPP, the government will still be the one to regulate any proposed fare increases.

Government fare promotional programs such as the Pamilya Pass 1+3, as well as the 50 percent discount for students, would not be affected as it has an allocated budget within the department.

The LRT-2 route begins from Masinag in Antipolo to Recto in Manila. The MRT-3, on the other hand, runs from North Avenue in Quezon City to Taft Avenue in Pasay City.

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