The group of Metro Pacific Investments Corp. and Ayala Corp. offered to invest up to P20 billion to rehabilitate, operate and maintain Metro Rail Transit Line 3.
MPIC president and chief executive Jose Maria Lim said the required amount of investment for MRT 3 could reach P20 billion, including the equity component
MPIC earlier submitted an unsolicited proposal to take over the rehabilitation and operations and maintenance of MRT 3 for P12.5 billion.
Lim said the consortium already secured an original proponent status from the Transportation Department in September for the rehabilitation of MRT 3.
“We are [now] waiting for Neda [National Economic and Development Authority] to inform us when they want to have the fist meeting to review the terms [of our proposal],” he said.
“If [the terms are] acceptable, then it will be subject to a Swiss Challenge,” Lim said. This means that other groups would be given an opportunity to match or exceed the offer of the MPIC-Ayala consortium.
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 LBP and DBP in MRT 3 for $1.1 billion.
The MPIC-Ayala group earlier said it expected 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 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.
It is currently being operated by the Transportation Department, while the maintenance contract is held by Busan Universal Rail Inc.
Under its proposal, the MPIC-Ayala group wants to take over the whole operations of the line. Light Rail Manila Corp., which is also controlled by the two conglomerates, already operates Light Rail Transit Line 1 and will build the line’s extension to Cavite province.
