AROUND P20 billion will be needed to rehabilitate the Metro Rail Transit (MRT-3), according to Metro Pacific Investments Corp. (MPIC) which has earlier committed to increasing its investment in the elevated railway to boost capacity.

“The required amount of investment is larger… [around P20 billion] including equity requirement,” MPIC President and Chief Executive Officer (CEO) Jose Ma. K. Lim told reporters in a recent interview.

The previous amount of the investment for the rehabilitation plan is reported at P12 billion.

Light Rail Manila Corp. (LRMC), a consortium of MPIC’s Metro Pacific Light Rail Corporation, AC Infrastructure Holdings Corp., and Macquarie Holdings (Philippines) Ltd. Pte., submitted an unsolicited proposal to the government to take over the MRT-3, including its operations and maintenance. The government is in charge of operations of MRT-3, while the private sector handles the maintenance.

The proposal also includes provisions for the planned buyout of the government stake in the MRT-3, and the offer of the services included in the concession agreement between the government and LRMC on the operations and maintenance of the Light Rail Transit (LRT)-1.

Transportation Secretary Arthur P. Tugade told reporters in September that the department has granted LRMC original proponent status for the project. The proposal will be subject to approval by the National Economic and Development Authority (NEDA) Board, and will then undergo a Swiss challenge.

“We’re waiting for NEDA to inform when they want to have the first meeting to improve the terms,” Mr. Lim said.

MRT-3 General Manager Rodolfo J. Garcia told reporters on Friday that a transition team is being formed to handle the maintenance of the MRT system, pending the decision of the Department of Transportation (DoTr) on the termination of the contract with current maintenance provider Busan Universal Rail, Inc. (BURI).

Transportation Undersecretary for Railways Cesar Chavez has earlier submitted a position paper and supplementary paper recommending the DoTr terminate the contract with BURI, citing the failure of the Filipino-South Korean joint venture to properly maintain the MRT-3 with recurrent glitches in the system.

BURI has repeatedly denied the claims of Mr. Chavez, saying that the MRT’s malfunctioning is due to “design flaws.”

BURI on Sept. 20 filed a case against Mr. Chavez in the Office of the Ombudsman, citing graft and administrative offenses, for nonpayment of maintenance fees amounting to P176 million.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

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