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Manila Bulletin devider Business devider Trade & Industry devider DOTr fast-tracks MRT-3 sale, private operator may take over by 2027

DOTr fast-tracks MRT-3 sale, private operator may take over by 2027

Published Jun 19, 2026 03:30 pm
The Department of Transportation (DOTr) plans to turn over the operations and maintenance (O&M) of the Metro Rail Transit Line 3 (MRT-3) to the winning bidder of the nearly ₱50-billion concession by the fourth quarter of 2027.
Based on its presentation at the recent Asia Infrastructure Forum, the DOTr aims to award the contract in the third quarter of next year, with the takeover of the MRT-3 expected between October and December.
The DOTr is currently working on the terms of reference (TOR) for the public-private partnership (PPP) project before it can proceed with the formal bidding process.
The bidding for the project is expected to commence as early as next month, with the selection of the winning bidder set for the second quarter of next year.
The DOTr said it is looking for an experienced and qualified private sector partner who will take over the O&M of the railway, carrying out essential rehabilitation and upgrading activities as certain assets near the end of their service life.
The O&M contract covers the addition of new rolling stock to replace aging train assets, as well as the deployment of the long-idled Dalian trains into service.
The winning bidder will also undertake upgrades to the signaling system, depot facilities, and communications and power systems.
As a result, the DOTr wants prospective bidders to have experience in engineering, procurement, and construction (EPC), as well as O&M, for a comparable railway project.
The bidder—which may be in the form of a corporation, joint venture, or consortium—must have the net worth to meet minimum equity requirements and the capacity to raise debt.
As part of the concession, the would-be MRT-3 operator will also be responsible for expanding the capacity of the rail line from its current average daily ridership of around 400,000 passengers.
Through the PPP project, the DOTr seeks to increase ridership by more than threefold to 1.3 million passengers per day.
The concession for the MRT-3 is expected to run for between 20 and 25 years, with an estimated project cost of $800 million, or around ₱48.22 billion.
To ensure a return on investment for the winning bidder, the DOTr said it is open to considering de-risking mechanisms to help reduce the project's risks and support its bankability.
The agency added that the railway's strong ridership helps generate robust fare revenue and commercial business opportunities.
According to the PPP Center, the MRT-3 concession also includes the collection of passenger fares for remittance to the government, the exercise of commercial development rights within prescribed station boundaries with a government share in gross revenue, and the government's payment of availability payments.
The MRT-3 is currently under government control after the 25-year build-lease-transfer (BLT) contract of Metro Rail Transit Corp. (MRTC) over the railway expired last year.
As a stopgap measure, current maintenance and rehabilitation works are being managed by Japan's Sumitomo Corp. through 2027.

Related Tags

Department of Transportation (DOTr) Metro Rail Transit Line 3 (MRT-3)
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