Aquino to decide on MVP bid for MRT 3

TAKEOVER IMMINENT? Transportation and Communications Secretary Manuel Roxas said Friday, November 11, 2011, that his department is set to meet with the group of businessman Manuel V. Pangilinan next week over his proposal to acquire MRT 3 for $300 million.

The Department of Transportation and Communications (DoTC) is set to make a recommendation to President Aquino on whether or not the government should hand over full rights over the Metro Rail Transit (MRT) train line to the group of businessman Manuel V. Pangilinan.

Speaking to reporters on Friday, Secretary Manuel “Mar” Roxas II said the DoTC was considering spending P4.5 billion, to be taken out of government coffers, to buy 26 new trains for the MRT to increase capacity by a third.

But he said the government was also studying Metro Pacific Investments Corp.’s (MPIC) $300-million proposal for MRT as a viable alternative to help the government save money. The proposal was also in line with the government’s move to hand over major infrastructure projects to the more capable hands of the private sector.

“We will have clarificatory meetings with [MPIC] next week, and after that, we can finalize our reports and make a presentation to President Aquino,” Roxas told reporters.

Under MPIC’s proposal, the company plans to spend $300 million to improve MRT facilities by doubling the number of trains to 146 and expanding the stations.

The company has also pledged to acquire the government’s shares in MRT, held by state lenders’ Development Bank of the Philippines and Land Bank of the Philippines.

In exchange, the company said it would raise MRT fares to about P30 a passenger, or about the same price commuters pay when they take Metro Manila buses for the same distance.

MPIC also wants its concession for the MRT to be extended by an additional 15 years to give the company more time to recover its investment. The MPIC proposal was presented to President Aquino earlier this month.

Another presentation, wherein the DoTC is expected to make its recommendation on whether to accept the proposal, would be made before the end of the month, Roxas said.

The MRT has a capacity of 350,000 passengers a day, but about half a million people ride the system daily. This overcapacity has led to the frequent breakdown of trains.