Selection of new MRT3 maintenance provider moved to June

It will take 31 months and P16.985 billion to restore the Metro Rail Transit Line 3, based on talks between the Department of Transportation and the Japan International Cooperation Agency

The government changed its target month for the selection of a new maintenance and rehabilitation provider for the Metro Rail Transit Line 3 (MRT3) from May to June, as signing a loan deal with the Japanese government is taking more time than initially expected.

The Department of Transportation (DOTr) on Tuesday, May 15, said in a statement that an appraisal mission was conducted last week through technical discussions with officials of the Japan International Cooperation Agency (JICA).

"After completing the appraisal mission, DOTr and Japan will now move on to signing of the loan agreement and the mobilization of the new maintenance and rehabilitation provider for MRT3, which is targeted this June 2018," said the DOTr.

Transportation officials have yet to explain why the target for choosing a new MRT3 maintenance provider was moved by one month.

Back in December 2017, the DOTr had said it expects a new MRT3 maintenance provider by May, as it is already finalizing the terms of its loan agreement with JICA.

Timeline, cost

Based on the minutes of discussion, the DOTr said it will take 31 months and P16.985 billion to restore the MRT3. Another 12 months has been set to address any problems or glitches that could arise – called a defect liability period. (READ: MRT3 delivers on its promise of more trains)

"31 months for the simultaneous rehabilitation and maintenance works to restore MRT3 to its original design condition and capacity, and 12 months for the defect liability period," the transportation department said.

It added that the project cost of ¥34.480 billion (P16.985 billion) will cover the MRT3's trains, power supply system, overhead catenary system, radio system, CCTV system, PABX public address system, signaling system, rail tracks, road rail vehicles, depot equipment, elevators and escalators, as well as other station building equipment.

Aside from funding, the DOTr had said it will utilize the bidding process of Japan in getting a new MRT3 maintenance provider.

"Required in all official development assistance (ODA) arrangements with them," Transportation Undersecretary for Railways Timothy John Batan said last December.

Batan had said procurement rules and regulations will be observed in choosing the new MRT3 maintenance provider, noting that it will be Japanese like other projects of the DOTr with Japan.

Batan was sought for comment on the timeline of the bidding for the new MRT3 maintenance and rehabilitation provider, but he has not yet replied as of posting.

The MRT3 has been encountering numerous malfunctions in recent years due to substandard maintenance and underinvestment in system renewal requirements. 

PHL, JICA finalize terms for MRT3 rehab

Philippine and Japanese official finalized last week the details of the rehabilitation and maintenance of the Metro Rail Transit Line 3 (MRT3) to be financed by the Japan International Cooperation Agency (JICA).

In a statement on Tuesday, the Department of Transportation (DOTr) estimated that rehabilitating the mass rail system will cost an ¥34.480 billion or P16.985 billion.
“It will be largely funded by Japan but some admin fees or taxes are to be shouldered by PH,” MRT3 media relations officer Aly Narvaez said in a separate Viber message.

The project appraisal was conducted in technical discussions between the DOTr and JICA last week.

The rehabilitation will cover the trains, the power supply system, the radio system, the CCTV system, public address system, and the signaling system.

It will also cover the rail tracks, road rail vehicles, depot equipment, elevators and escalators, and other station building equipment.

The overall rehabilitation of the rail system is estimated to take 43 months—31 months for simultaneous rehabilitation and maintenance works, and 12 months for the defect liability period.

Separately, Transportation Undersecretary Timothy John Batan said the formal pledge by Japan is scheduled next month.

“June: Pledge by the Government of Japan, Exchange of Notes, and Loan Agreement signing,” he said in a Viber message to reporters on Tuesday.


Originally, Transportation Secretary Arthur Tugade said earlier this year that May was the target for the Japanese to take over the maintenance and rehabilitation of MRT3.

The Philippines and Japan exchanged notes on a government-to-government agreement for Sumitomo Corp. and its technical partner Mitsubishi Heavy Industries to take over the maintenance and rehabilitation of the mass rail transit system.

Sumitomo and Mitsubishi were the original MRT3 maintenance providers from 2003 to 2012. Sumitomo also designed and built the system from 1998 to 2000.

“Yes, some findings from the due diligence system audit kasi needed further validation. Also, it was also timely na nacover ng system audit ang annual maintenance works ng MRT3 so the opportunity was maximized na rin,”  Narvaez noted.

“Around March kasi the system audit was complete na, but then there was the annual maintenance,” she said.

The DOTr said the project will also include tapping a Supervision Consultant who will facilitate the implementation of an Environmental Management Plan (EMP) and an Environment Monitoring Plan. —VDS, GMA News

DOTr reveals details on Japan-backed MRT rehab

The Department of Transportation on Tuesday bared the final details on the three-year makeover of the overcrowded Metro Rail Transit, which will be financed by Japan.

Reports of MRT train breakdowns have become as regular as the weather. In 2017, the shabby metro rail system, which serves thousands of passengers each day, reportedly suffered at least 500 disruptions.

In a statement, the DOTr said the government and Japan International Cooperation Agency, or JICA, signed last Friday the final details on the estimated project cost, scope of works and schedule of the MRT rehabilitation.

Based on the discussions, upgrading the MRT will take 43 months: 31 months for the simultaneous rehabilitation and maintenance works to restore MRT to its original design condition and capacity; and 12 months for the defect liability period.

The project, which is estimated to cost ¥34.480 billion (P16.985 billion), will cover the repair of trains, power supply system, overhead catenary system, radio system, CCTV system, signaling system, rail tracks, elevators and escalators and other station building equipment.

“After completing the Appraisal Mission, DOTr and Japan will now move on to signing of the loan agreement and the mobilization of the new maintenance and rehabilitation provider for MRT, which is targeted this June 2018,” the Transportation department said.

Last year, the government terminated its contract with Busan Universal Rail Inc., the MRT-3 service provider, due to alleged poor performance.

To ensure the project’s sustainability, a supervision consultant will be hired to facilitate and monitor the implementation of the MRT rehabilitation.

DOTr, Jica set P16.98-billion price tag for MRT 3 rehab, upkeep

JAPAN has finalized the cost, scope and schedule of the rehabilitation and maintenance of the Metro Rail Transit (MRT) Line 3, setting a P16.98-billion price tag for the said project.

According to a media advisory, the minutes of discussion for the appraisal mission for the deal was attended by representatives of the Department of Transportation (DOTr) and the Japan International Cooperation Agency (Jica) last Friday.

The appraisal initiative has set the cost of the project to P16.98 billion, and will cover the railway line’s trains, power-supply system, overhead catenary system, radio system, closed-circuit television  system, public address system, signaling system, rail tracks, road-rail vehicles, depot equipment, elevators and escalators, and other station building equipment.

Tentatively, the whole deal will take about three and a half years, 31 months for the simultaneous rehabilitation and maintenance works to restore train system to its original design condition and capacity, and a year for the defect liability period.

Transportation Undersecretary Timothy John R. Batan said that the appraisal mission forms part of process for official development assistance (ODA) deals with Japan.

Talks for the said assistance started last year. January saw the exchange of note verbale between the two governments.

A month after Jica representatives started the on-site inspection of the MRT 3’s condition and noted the works needed to rehabilitate the system.

From March to April, Japanese engineers stated preparing the system’s inspection report, which includes both the scope of works and cost estimates.

It was finalized last Friday, when the appraisal mission was concluded.

By June, Batan said, the Philippines expect to finalize the following: “pledge by the government of Japan, exchange of notes and the loan agreement signing.”

Likewise, the two government agreed to commit to best environmental management practices and social considerations through the procurement of a supervision consultant who will facilitate the implementation of an Environmental Management Plan  and an Environmental Monitoring Plan.

To ensure the project’s sustainability, the supervision consultant shall also draft and institutionalize new MRT 3 manuals, which will update methodologies on appropriate asset management, project monitoring and supervision, and operations and maintenance activities.

The Japan ODA-financed rehabilitation and maintenance project is intended to “fix everything that needs to be fixed” in the MRT 3 through a well-qualified, experienced and single-point-of-responsibility rehabilitation and maintenance service provider, Batan stated.

The government is currently directly engaging Sumitomo Corp. and its technical partner Mitsubishi Heavy Industries for the upkeep of the MRT 3.

The two companies designed, built and maintained the MRT 3 in its first 12 years of operations.

Sumitomo’s maintenance contract was terminated in 2012, after the previous Aquino administration decided to take over the said component despite contrary provisions in the build-lease-transfer contract with MRT Corp.

The new rehabilitation and maintenance service provider will be mobilized after securing the loan agreement from Japan.

The Jica-financed initiative is part of the government’s program to rehabilitate, expand  and modernize the train system.

Another option being considered is the acceptance of the unsolicited proposal of Metro Pacific Investments Corp. for the rehab and modernization of the railway line.

Metro Pacific submitted in 2017 an unsolicited proposal that involves the expansion of the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. It will double the capacity of the line to 700,000 passengers a day from the current 350,000 passengers daily.

The multimillion-dollar expansion is deemed as an all-encompassing deal, including the improvement of the reliability of rolling stock, the upgrading of power supply, the upgrading of stations and the replacement of rails, which will allow the company to operate the new trains purchased by the government from Chinese train manufacturer Dalian.

Unsolicited proposals are required, under the law, to be subjected to a Swiss challenge, wherein other groups can offer a similar proposal, and the original proponent can present a counter offer.

The government awarded the original-proponent status to Metro Pacific last year.

Metro Pacific has nominated Light Rail Manila Corp. as its corporate vehicle for the MRT 3 deal. The said company, a partnership between Metro Pacific and Ayala Corp., operates the Light Rail Transit (LRT) Line 1.

Its proposal for the MRT mimicked the same provisions under its concession agreement for the LRT 1 operations and modernization deal, which it bagged in 2014 via the Public-Private Partnership Program.

It means that, instead of having a different operator and maintenance provider, the group will be the one to do both, something that Robert John Sobrepeña has been pushing for since the government forcibly took over the upkeep of the facility in 2012.

Currently, the MRT 3 operates with 16 working trains daily, serving roughly 350,000 passengers per day.