HONG KONG — Metro Pacific Investments Corporation (MPIC) has submitted a revised proposal to the Department of Transportation and Communications (DoTC) for the purchase of the government’s stake in the Metro Rail Transit that now includes a provision for a Swiss Challenge.

"I think the new leadership in DoTC is reexamining that plan. They have already announced they will not proceed with the bidding while studying what to do next. We have started to discuss our proposal with the new team of DoTC," said MPIC president Jose Ma. Lm in an interview.

Lm said the plan is still to double the capacity of MRT 3 along EDSA but at a cost that will not make the consumers pay more than the existing bus fare, said Lm adding that the expansion proposal can be subject of a Swiss Challenge.

MPIC had offered to cover 40 percent of subsidies the government is now paying for the operation of the MRT 3. Third parties now hold bonds, which are secured by earnings of the MRT.

"All in all, we intend to raise debt and equity. In terms of equity contribution, it would be $200-300 million," Lm said adding that it will be raised through a consortium.

To increase capacity, Lim said they have to buy new cars; upgrade the signaling equipment so the system can handle longer trains and more departures to increase the frequency.

"The capacity per day now is 350,000, we would like to bring that to 700,000" Lim said.

Lim said they will also need $350 million to buy equity and some of the bonds because the government is holding some of the equity.

"I think we could mobilize within 6 months and do the expansion in the next 12-18 months because the system is already built, it is just upgrading," Lim said.

However, he noted that "it remains to be seen whether the government wants to negotiate or not."

Under the proposal, MPIC will reacquire bulk of the shares in MRT held by the state-owned Land Bank of the Philippines and Development Bank of the Philippines.

The shares represent MRT securities backed by equity rental payments made by the DoTC, giving the government a majority economic interest in the train line.

However, the shares, which are receivables of the DoTC that were securitized and sold by the MRT line’s original stakeholders to foreign investors, do not hold voting rights in MRT Corp.

In exchange for its investments, MPIC asked that it be given the rights to manage the MRT line until 2025.