8 hours ago
2
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
Elijah Felice Rosales - The Philippine Star
May 13, 2025 | 12:00am
The Metro Rail Transit Line 3 (MRT-3) passes alongside motorists plying EDSA in Quezon City on April 5, 2025.
STAR / Miguel de Guzman
MANILA, Philippines — The Department of Transportation (DOTr) has requested for another loan tranche from Japan to extend the maintenance contract of the Metro Rail Transit Line 3 (MRT-3) for at least 30 months.
As the build-lease-transfer (BLT) deal for MRT-3 nears expiry, the DOTr is negotiating with the Japan International Cooperation Agency (JICA) for a second supplemental loan to maintain the MRT-3.
The loan, if approved, will extend maintenance works for MRT-3 for 30 months, of which six months would be allocated as transition period to the next concessionaire.
Based on the DOTr’s timeline, the agency will submit to JICA a request for official development assistance (ODA) in June. Between June and July, the project will be evaluated for approval by the National Economic and Development Authority Board, chaired by President Marcos.
Afterward, the government will negotiate the terms of reference of the ODA with JICA. The aim is to sign the ODA by October to extend the maintenance contract before the end of the year.
However, Transportation Secretary Vince Dizon said the DOTr is asking for an interim extension of existing maintenance until such time that the agency secures another loan from JICA or finds a new operator for MRT-3.
“Notably, given that the current maintenance contract will end in July 2025, and a gap period will occur prior to the onset of the extension, the DOTr proposes an interim maintenance period from August to October,” Dizon told The STAR.
Dizon said the government may find it challenging to finance the operations and maintenance of MRT-3 on its own, especially now that the railway runs on extended hours during weekdays.
The BLT deal for MRT-3 with Sobrepeña-led Metro Rail Transit Corp. (MRTC) is set to end in July. The DOTr is crafting a new contract for MRT-3 as Dizon has sent feelers to the private sector to participate in the bidding.
Moreover, Dizon said the DOTr is open to receiving unsolicited proposals for the operations and maintenance of the railway. For instance, Metro Pacific Investments Corp. (MPIC) may refile a previous offer to manage MRT-3 and integrate it with the Light Rail Transit Line 1.
In June 2024, MPIC, together with Japanese developer Sumitomo Corp., submitted an unsolicited proposal to take over MRT-3, but the DOTr found deficiencies in the offer.
Given this, the DOTr had to return the proposal in December 2024 to give MPIC the opportunity to provide additional details as required by the Public-Private Partnership Code.
If the DOTr receives no unsolicited proposals, the agency will resort to a solicited bidding that is now being developed with the Asian Development Bank (ADB).
“We really need to fast-track the PPP of MRT-3, and we’re open to an unsolicited proposal for it. I already communicated this to potential private sector interested parties, but we will not wait for that, so we are working with our advisers, specifically the ADB, to start the process of procuring an operations and maintenance provider,” Dizon said.
The DOTr is still identifying the concession period for the new MRT-3 contract but Dizon is inclined to give the new operator at least 25 years, similar to the MRTC deal.
