By means of Ashley Erika O. Jose, Reporter
THE Ministry of Transport (DoTr) is still considering two operationstions for the planned procurement of operation and maintenance (O&M) contract for Metro Rail Transit Line 3 (MRT-3), one ofFcial of the The transportation department said.
“As for MRT-3, the current contract was negotiated through the BOT (build-operate-transfer) system. That contract expires or expires in July. The DOTr is currently considering its two options,” Transportation Secretary Jeremy S. Regino told reporters last week.
“Our investigation is already underway and we will have to make a decision on this within a year.”
In 2024, the Transport Department said it plans to bid out the concession for the O&M of MRT-3 by the first quarter of this year.
“The investigation is now underway. 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 that the MRT-3 contract will expire before the DoTr makes a decision on the project.
The Sobrepeña-led Metro Rail Transit Corp. (MRTC) will hand over the MRT-3 to the government in July once the BOT agreement expires.
The government previously said it hopes to privatize MRT-3 before the contract expires this year.
The Transport Department is carefully studying privatization options for the MRT-3, Mr Regino said, adding that the Asian Development Bank is also helping the agency assess whether it would go the solicited or unsolicited route for the project.
Meanwhile, Jeffrey I. Manalo, deputy director of the Public-Private Partnership (PPP) Center, said the DOTr rejected Metro Pacific Investments Corp.’s unsolicited proposal. (MPIC) for the MRT-3 project.
“In a letter dated December 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). ”, said Mr Manalo in a Viber message Business world on Monday.
Business world asked MPIC for comment, but had not received a response by 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 advisor on PPP at the technical advisory group Libra Konsult, Inc., a requested mode would always be a better option and serve the best interest of the government.
“In the demand mode, the government determines what exactly it needs and requires, and has full control over the procurement process, and has the full spectrum of bids to select the best offer,” Mr Villarete said.
“Railway systems operate for a long time; These PPP contracts are therefore also for the long term. It would be in the best interest of the government and of the people if the tender process is carried out carefully and with the utmost safeguards, because we will be stuck with it for the longest time,” said Mr Villarete.
Rene S. Santiago, former president of the Transportation Science Society of the Philippines, said the government should opt for an unsolicited plan 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 main Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a part of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in Business world through the Philippine Star Group, which it controls.