The Department of Transportation said it is pursuing the development and rehabilitation of Metro Rail Transit Line 3 system through an unsolicited proposal submitted by Metro Pacific Investments Corp.
“We are still in talks with them [MPIC]. I want lock, stock and barrel. I want to include the issue of equity and loans,” Transportation Secretary Arthur Tugade said.
The Transportation Department in September 2017 granted the original proponent status to MPIC, which submitted the unsolicited bid for the rehabilitation and O&M of MRT 3.
The consortium of MPIC and Ayala Corp. submitted an unsolicited proposal to DOTr to upgrade and rehabilitate MRT 3 system for P12.5 billion.
The consortium is also looking at buying out the stake of the government and private investors in MRT 3.
The government through Land Bank of the Philippines and the Development Bank of the Philippines own a combined 80-percent economic interest in MRT 3, while the balance is held by creditors of Metro Rail Transit Corp.
MPIC in 2011 offered to buy out the shares of Land Bank of the Philippines and Development Bank of the Philippines in MRT 3 for $1.1 billion.
MPIC-Ayala Group earlier said it was expecting to take over the O&M of MRT 3 in six months from the submission of its application as the original proponent to the government in July.
MPIC also submitted a proposal to the Department of Transportation in 2011 to invest $524 million to rehabilitate and upgrade MRT 3.
The Aquino administration, however, rejected Metro Pacific’s offer that would involve raising commuter fares.
MRT 3, which runs along Edsa from North Avenue in Quezon City to Taft Avenue in Pasay City, serves over 500,000 passengers a day, beyond its rated capacity of 350,000.
The line has a fleet of 73 Czech-made air-conditioned rail cars.
http://manilastandard.net/business/corporate/283432/govt-metropac-continue-talks-over-mrt-3-operation.html
Friday, December 21, 2018
Gov’t revisits MPIC bid to take over MRT-3
The Department of Transportation (DOTr) has not completely taken out of the picture Metro Pacific Investments Corp. (MPIC)’s unsolicited proposal to operate the MRT-3 amid previous statements indicating that the agency is inclined to have a solicited bidding for the project.
“We can look at the unsolicited, but also take a look at solicited. What is running through our minds right now is unsolicited, but what I want is for it to be as a whole. Operations, maintenance, equity, ownership – everything will be included, lock, stock and barrel,” Transportation Secretary Arthur Tugade said.
“What I am saying is we are looking at the unsolicited but that does not mean that it would be the one. We are also eyeing if it can be solicited,” he said.
Tugade said the government and the private proponent are discussing details of the proposal.
“Up to what extent we will agree, I don’t know. We are still talking,” he said.
In an interview last October, Tugade said he intends to make the project a solicited proposal, wherein the contract would be auctioned amid an existing unsolicited proposal from MPIC that has already bagged an original proponent status (OPS).
This was further supported by Transportation Undersecretary Timothy John Batan, who in a separate interview, said the solicited route is the direction the DOTr is heading into for the MRT-3.
MPIC, in partnership with Ayala Corp. and Macquarie Infrastructure Holdings (Philippines) Pte Ltd., was granted OPS by the DOTr last year for its proposal to rehabilitate, operate, and maintain the MRT-3 for 30 years.
Being granted OPS gives MPIC the right to match an offer given by another group via a Swiss challenge.
The rehabilitation component, which was supposed to be part of MPIC’s unsolicited proposal, is now out of the equation as the DOTr announced that Japan’s Sumitomo and Mitsubishi Heavy Industries is returning as the rehabilitation and maintenance service provider of the MRT-3.
MPIC’s proposed investment for its MRT-3 proposal is P20 billion and it includes a provision of no fare increase for at least two years.
The company has also offered to buy out the government’s stake held by Land Bank of the Philippines and Development Bank of the Philippines as well as other shareholders in Metro Rail Transit Corp. or the private owner of the train system.
https://www.philstar.com/business/2018/12/21/1878637/govt-revisits-mpic-bid-take-over-mrt-3
“We can look at the unsolicited, but also take a look at solicited. What is running through our minds right now is unsolicited, but what I want is for it to be as a whole. Operations, maintenance, equity, ownership – everything will be included, lock, stock and barrel,” Transportation Secretary Arthur Tugade said.
“What I am saying is we are looking at the unsolicited but that does not mean that it would be the one. We are also eyeing if it can be solicited,” he said.
Tugade said the government and the private proponent are discussing details of the proposal.
“Up to what extent we will agree, I don’t know. We are still talking,” he said.
In an interview last October, Tugade said he intends to make the project a solicited proposal, wherein the contract would be auctioned amid an existing unsolicited proposal from MPIC that has already bagged an original proponent status (OPS).
This was further supported by Transportation Undersecretary Timothy John Batan, who in a separate interview, said the solicited route is the direction the DOTr is heading into for the MRT-3.
MPIC, in partnership with Ayala Corp. and Macquarie Infrastructure Holdings (Philippines) Pte Ltd., was granted OPS by the DOTr last year for its proposal to rehabilitate, operate, and maintain the MRT-3 for 30 years.
Being granted OPS gives MPIC the right to match an offer given by another group via a Swiss challenge.
The rehabilitation component, which was supposed to be part of MPIC’s unsolicited proposal, is now out of the equation as the DOTr announced that Japan’s Sumitomo and Mitsubishi Heavy Industries is returning as the rehabilitation and maintenance service provider of the MRT-3.
MPIC’s proposed investment for its MRT-3 proposal is P20 billion and it includes a provision of no fare increase for at least two years.
The company has also offered to buy out the government’s stake held by Land Bank of the Philippines and Development Bank of the Philippines as well as other shareholders in Metro Rail Transit Corp. or the private owner of the train system.
https://www.philstar.com/business/2018/12/21/1878637/govt-revisits-mpic-bid-take-over-mrt-3
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