The Department of Transportation said it is pursuing the development and rehabilitation of Metro Rail Transit Line 3 system through an unsolicited proposal submitted by Metro Pacific Investments Corp.
“We are still in talks with them [MPIC]. I want lock, stock and barrel. I want to include the issue of equity and loans,” Transportation Secretary Arthur Tugade said.
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.
The consortium of MPIC and Ayala Corp. 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.