Metro Pacific Investments Corp. said it is still awaiting the final decision of the government on its unsolicited proposal to rehabilitate, operate and maintain the Metro Rail Transit Line 3 system.
“There has been no official communication. At the end of the day, they decide, right?” MPIC chairman Manuel Pangilinan said.
Pangilinan’s statement came after Transportation Secretary Arthur Tugade said the government was considering to bid out the rehabilitation and operations and management of MRT-3 instead of the unsolicited proposal.
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.
When asked if his company would join the open bidding for MRT-3, Pangilinan said: “ I think [it] depends pretty much on the terms. So we have to review.”
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.
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 and 48 light rail vehicles made by China’s CRRC Dalian.