Government to bid out MRT 3 contract

The Department of Transportation and Communications (DoTC) has decided to conduct an open competitive bidding for the contract to operate and develop the Metro Rail Transit line on EDSA, or MRT 3.

Transportation Secretary Manuel “Mar” Roxas II said that privatizing the train line through a bidding, instead of entertaining the unsolicited proposals from San Miguel Corp. and Metro Pacific Investments Corp. (MPIC), would ensure that the government would get the best deal possible.

“We will not choose winners or losers,” said Roxas, referring to the San Miguel and MPIC proposals. Both firms earlier submitted separate offers to pour in billions of pesos to improve the MRT line in exchange for the rights to operate and collect revenues from the system.

“The competition between private sector players will be through competitive bidding,” Roxas said.

If the government had chosen to accept either of the unsolicited bids, that proposal would have to undergo a competitive “Swiss” challenge wherein other bidders would be given a chance to submit better proposals.

If other bidders are able to submit better offers, the first company would be given the chance to match it to win the contract.

Under its proposal, MPIC offered to invest an additional $300 million for the purchase of new trains and expansion of stations.

SMC’s offer also involves the infusion of fresh capital into MRT 3, although the company has not disclosed details of its proposal.

The Aquino administration, however, has expressed its preference for projects solicited by the government.

The government, however, faces a possible legal roadblock due to the MRT line’s current ownership structure.