The government intends to buy out next year the remaining 20-percent “economic interest” of the private sector in MRT 3, valued at $200 million.
“We are negotiating with the parties on how to proceed with the buyout. We intend to do it next year,” Purisima told senators on Monday during a budget hearing.
At present, the government, through state-run Development Bank of the Philippines and Land Bank of the Philippines, holds 80 percent of the economic interest in MRT 3. But in terms of “legal interest,” the government holds only 20 percent.
“Economic interest” refers to stake in the financial aspect of MRT 3, which runs from North Edsa to Taft. “Legal interest”, on the other hand, involves voting rights.
The economic interest in MRT 3 is owned by bond holders who purchased asset-backed securities sold by private-sector owners.
Land Bank and DBP hold 80 percent of the economic interest through the bonds it purchased. The remaining 20 percent is held by other bond holders, mostly banks.
Officials said a takeover of the remaining 20-percent stake in the economic interest of MRT 3 would help pave the way for an increase in the government’s voting rights. Michelle V. Remo