By Darwin G. Amojelar
The Department of Transportation said Wednesday the government is not selling the assets of Metro Rail Transit Line 3, but only plans to privatize the operations and maintenance of the rail system.
Transportation Secretary Jaime Bautista said the agency was considering the possibility of turning over the O&M of MRT 3 to qualified private sector operators to improve its operational efficiency.
Bautista said “railway systems should remain the most affordable and safest mode of mass transit in the country.”
The government continues to subsidize the operations of railways in the metropolis including Light Rail Transit Line 1, LRT 2 and MRT 3 to keep fares affordable.
“We are looking at partnering with private rail operators for MRT 3’s operations and maintenance – under the same scheme with LRT 1—with the rail line’s assets remaining government-owned,” Bautista said.
He said privatizing MRT 3’s O&M was expected to enhance efficiency and safety and reduce operational costs to maintain affordable fares.
The DOTr earlier said that under the 25-year build-lease-transfer arrangement, Metro Rail Transit Corp. will transfer the 16.9-kilometer MRT Line 3 to the government by 2025.
MRTC, owned by Metro Rail Transit Holdings II Inc. led by businessman Robert John Sobrepeña, is responsible for the design and construction of the EDSA rail transit system.
Formed in 1995, MRTC started building MRT 3 in October 1996, completed it in December 1999 and started full operations in July 2020.
MRTC and the government, through the DOTr, signed the BLT agreement in 1997 to construct and maintain MRT 3.
The partnership required the DOTr to hold the franchise and run the system particularly the operation and the collection of fares.
MRTC financed the construction of the modern rail system stretching along EDSA’s 10.5-meter median from North Ave. in Quezon City to Taft Ave. in Pasay City. The company infused P4.49 billion worth of equity into the project.