The Department of Transportation (DoTr) is still conducting a study to determine the most suitable approach for the impending privatization of Metro Rail Transit (MRT) Line 1 and the Light Rail Transit (LRT) Line 2.
In an interview, Transportation Undersecretary for Railways Jeremy Regino indicated that the initial plan of bundling the operations and maintenance (O&M) of both lines may no longer be the optimal solution at present, given that they cater to distinct markets.
“The fastest conclusion of that study will be around the end of this year. The International Finance Corp. is studying LRT-2 while the Asian Development Bank, on the other hand, is studying MRT-3,” Regino said.
“We see possibilities and one of them is that bundling may not be appropriate at this time because they have different market. The best approach for MRT-3 may not be the same approach as LRT-2,” he added.
He explained that the rehabilitation and expansion of LRT-2 need to be taken into consideration before the line is offered to the private sector for takeover.
It can be recalled that the DoTr had been floating the idea of bundling the O&M of the two lines to make them more attractive to the private sector.
Former Transportation Undersecretary for Railways Cesar Chavez said in a previous interview that the government needs to decide on the fate of the two train lines by as early as July 2024.
Currently, the Sobrepeña-led Metro Rail Transit Corp. operates the MRT-3 but once its build-lease-transfer deal expires in 2025, the train’s assets will be turned over to the government.
The government-owned Light Rail Transit Authority, on the other hand, operates LRT-2.
To provide commuters with affordable train fares, the government provides subsidies for all railways in Metro Manila.