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Thursday, April 25, 2024

Tugade now eyes solicited bidding on MRT 3 contract

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The Department of Transportation is now looking at bidding out the rehabilitation, operation, and maintenance contract of the Metro Rail Transit Line 3 system.

“I will make it a solicited proposal for the package, including lock, stock and barrel. The package will also include the issue of equity and loans,” Transportation Secretary Arthur Tugade said, when asked about the update on the unsolicited proposal of Metro Pacific Investments Corp. for MRT 3. 

“We did not reject [MPIC’s unsolicited bid].  What we said is that we will change [the bidding process] and make it solicited,” Tugade said.

An unsolicited bid is a proposal made by a company to one that is not actively pursuing an offer, while a solicited bid is a result of an open invitation made by one company or organization.  An unsolicited bid is subject to Swiss Challenge.

The Transportation Department in September 2017 granted the original proponent status to MPIC which submitted the unsolicited bid for the rehabilitation and O&M of MRT 3. 

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MPIC chief financial officer David Nichols said the company would look into the new bidding procedures.  

“Well, let’s see. It might be that the bid-out is on the basis of what we submitted.  Anyway, that would be subject to a Swiss Challenge,” Nichols said, when sought for comment.

The consortium of MPIC and Ayala Corp. earlier submitted an unsolicited proposal to DOTr to upgrade and rehabilitate MRT 3 system for P12.5 billion. 

The consortium is also looking at buying out the stake of the government and private investors in MRT 3. 

The government through Land Bank of the Philippines and the Development Bank of the Philippines own a combined 80-percent economic interest in MRT 3, while the balance is held by creditors of Metro Rail Transit Corp.

MPIC in 2011 offered to buy out the shares of Land Bank of the Philippines and Development Bank of the Philippines in MRT 3 for $1.1 billion.

MPIC-Ayala Group earlier said it was expecting to take over the O&M of MRT 3 in six months from the submission of its application as the original proponent to the government in July.

MPIC also submitted a proposal to the Department of Transportation in 2011 to invest $524 million to rehabilitate and upgrade MRT 3.  

The Aquino administration, however, rejected Metro Pacific’s offer that would involve raising commuter fares.

MRT 3, which runs along Edsa from North Avenue in Quezon City to Taft Avenue in Pasay City, serves over 500,000 passengers a day, beyond its rated capacity of 350,000.

The line has a fleet of 73 Czech-made air-conditioned rail cars.

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