Gov’t still studying MPIC proposal to take over MRT-3

THE GOVERNMENT is still evaluating Metro Pacific Investments Corp.’s (MPIC) unsolicited proposal for the rehabilitation and takeover of the Metro Rail Transit Line-3 (MRT-3) system.

“They’re conducting due diligence, they just finished,” Transportation Secretary Arthur P. Tugade told reporters on the sidelines of the groundbreaking of the Southeast Metro Manila Expressway (SEMME) in Taguig City.

The Department of Transportation (DoTr) in November granted original proponent status (OPS) to MPIC, which offered to rehabilitate the MRT-3 system, and to handle its operations for a period of 30 to 32 years.

After an unsolicited proposal gains OPS, it is set to be evaluated by the National Economic and Development Authority (NEDA) Board. If approved, a Swiss challenge will be conducted.

MPIC President and Chief Executive Officer Jose Ma. K. Lim told reporters in September the company increased its proposed investment to P20 billion from the earlier amount of P12 billion.

MPIC is looking to take over the MRT-3 operations in tandem with the Ayala Group and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., and Macquarie earlier formed Light Rail Manila Corp. to manage the Light Rail Transit Line-1.

Amid the ongoing evaluation of the MPIC proposal, the DoTr is also in talks with the Japanese government for a new maintenance deal for the MRT-3. The talks are expected “to pave the way for DoTr’s direct engagement” of previous MRT maintenance provider Sumitomo Corp. and its technical partner Mitsubishi Heavy Industries, under a government-to-government official development assistance (ODA) platform.

Sumitomo and Mitsubishi Heavy had designed and built the MRT-3 system from 1998 to 2000, and maintained the system from 2000 to 2012.

Mr. Tugade said they expect the new maintenance provider for the MRT-3 to be in place by May.

In November, the DoTR terminated its contract with Busan Universal Rail, Inc. (BURI) for the MRT-3, citing BURI’s alleged failure to ensure efficient and available trains and failure to procure the proper spare parts.

SOUTHEAST EXPRESSWAY
Meanwhile, the government and concessionaire San Miguel Corp. (SMC) broke ground yesterday on Phase 1 of the SEMME or the C-6 Expressway Project.

The project is a 34.024-kilometer, six-lane, combined elevated and at-grade expressway with two directional traffic flow. It will start in the south with a connection to the existing Skyway Stage 1 in FTI, Taguig City, and will terminate in Batasan Complex in Quezon City. It eventually be linked to the North Luzon Expressway. Once completed, travel time from Bicutan, Taguig to Batasan, Quezon City will be reduced to 35 minutes.

Construction of the SEMME is targeted to start in April 2018, with Phase 1 targeted to be completed in 2020.

The project will be undertaken by SMC unit Citra Intercity Tollways, Inc.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd. MPIC’s other units are 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