The Department of Transportation (DOTr) plans to award the ₱179-billion contract to operate the Metro Manila Subway Project (MMSP) in the third quarter of 2027, aligning with preparations for the railway’s partial operations.

Based on its presentation during last week’s Asia Infrastructure Forum, the DOTr is currently preparing the tender for the public-private partnership (PPP) project under a solicited bidding process.

The DOTr expects the project’s terms of reference to receive concurrence from the Department of Economy, Planning, and Development (DEPDev) within the quarter, before securing clearance to proceed with the bidding process.

The PPP project is scheduled to be bid out before the end of the year, with the selection of the winning bidder set for the second quarter of 2027.

After awarding the contract in the third quarter of 2027, the DOTr expects the winning operator to assume the operations and maintenance (O&M) concession in the first quarter of 2028. This would coincide with the DOTr’s target of starting partial operations at a minimum of two MMSP stations by 2028.

Because construction of the MMSP remains far from complete, the 15-year concession for the O&M contract will likely begin in 2032, once the railway becomes fully operational. Management of the subway prior to this is considered a pre-operations phase, which is excluded from the concession period.

With an estimated total cost of ₱528.87 billion, the country’s first underground railway was initially scheduled to begin full operations by 2029 but has since been pushed back due to delays in right-of-way (ROW) acquisition. Given these challenges, the DOTr aims to ensure smooth operations by engaging an experienced subway operator to manage the network.

The agency is looking to award the contract to a company with recent experience operating passenger subway systems and managing key subsystems, including signaling, telecommunications, electrification, track, and depot systems. Prospective operators must also demonstrate a minimum net worth equivalent to a specified percentage of the project cost over recent years, with the option to rely on a parent company's financials if applicable.

Under the PPP project, the MMSP operator will oversee train service operations, subway infrastructure, non-fare revenue businesses, and the service and maintenance requirements of the Philippine Railway Institute.

To allay concerns over returns on investment, the DOTr noted that annual availability payments will be paid to the winning bidder based on their achievement of key performance indicators. The agency has also tapped development partners like the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA) for partial credit guarantees to mitigate the risk of delayed or non-payment.

The O&M contract is estimated to cost the government $2.95 billion (roughly ₱179.12 billion)—more than double the PPP Center's initial estimate of ₱78.24 billion. To ensure the proper implementation of the MMSP, the DOTr is also seeking a private sector partner to serve as the employer’s independent safety assessor and consultant.

Once fully operational, the MMSP is expected to reduce travel time between Valenzuela City and Ninoy Aquino International Airport (NAIA) Terminal 3 from the current 1.5 hours to under 40 minutes. The subway is projected to carry between 650,000 and 850,000 passengers daily across its 17 stations.