By Ashley Erika O. Jose, Reporter
THE Department of Transportation (DoTr) is still considering two options for the planned bidding of the operations and maintenance (O&M) contract for Metro Rail Transit Line 3 (MRT-3), an official from the Transportation department said.
“In terms of MRT-3, the present contract was established through the BOT (build-operate-transfer) system. That contract will expire or will end this July. The DoTr right now is considering its two options,” Transportation Undersecretary for Railways Jeremy S. Regino told reporters last week.
“Our study is already ongoing, and we will have to decide on this within the year.”
In 2024, the Transportation department said that it plans to bid out the concession for the O&M of MRT-3 by the first quarter of this year.
“The study is now ongoing. This is a big project, and we are studying its implications. We are evaluating the best possible options,” Mr. Regino said.
He hinted that it is possible for the MRT-3 contract to lapse first before the DoTr comes up with a decision on the project.
The Sobrepeña-led Metro Rail Transit Corp. (MRTC) is set to turn over the MRT-3 to the government by July once its BOT agreement lapses.
The government said previously that it hopes to privatize MRT-3 before the contract expires this year.
The Transportation department is carefully studying its privatization options for the MRT-3, Mr. Regino said, adding that Asian Development Bank is also helping the agency assess whether it would go the solicited or unsolicited route for the project.
Meanwhile, Public-Private Partnership (PPP) Center Deputy Executive Director Jeffrey I. Manalo said that the DoTr had rejected the unsolicited proposal of Metro Pacific Investments Corp. (MPIC) for the MRT-3 project.
“In a letter dated Dec. 16, 2024, the DoTr informed the proponent of the rejection/return of its unsolicited proposal for the MRT-3 project pursuant to the grounds and procedures under the PPP Code and its IRR (implementing rules and regulations),” Mr. Manalo said in a Viber message to BusinessWorld on Monday.
BusinessWorld sought comment from MPIC but had not received a response as of the deadline.
Last year, the DoTr said the MPIC-Sumitomo Consortium had resubmitted their unsolicited proposal for the MRT-3 O&M contract.
For Nigel Paul C. Villarete, senior adviser on PPP at the technical advisory group Libra Konsult, Inc., a solicited mode would always be a better option and would serve the government’s best interest.
“In the solicited mode, the government determines what it exactly needs and requires, and has full control of the procurement process, and would have the full spectrum of the bidding to select the best offer,” Mr. Villarete said.
“Rail systems operate for a long time; thus, these PPP contracts are also for the long term. It would be in the best interests of the government and of the people if the procurement process is done carefully with the fullest of safeguards because we will be stuck with it for the longest time,” Mr. Villarete said.
Rene S. Santiago, former president of the Transportation Science Society of the Philippine, said the government should opt for an unsolicited scheme for the planned privatization of the MRT-3.
“Accept the unsolicited proposal. It is the most practical, and fastest, option. Potential non-fare revenues are very limited,” he said in a Viber message.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls.
