MRT-3 draws 74 bidders from 14 countries for privatization auction
The Department of Transportation (DOTr) expects more than 70 local and international companies to slug it out for the concession to take over the increasingly lucrative Metro Rail Transit Line 3 (MRT-3) on the back of its growing passenger demand.
Transportation Undersecretary Timothy John Batan said the public-private partnership (PPP) project for the MRT-3 received serious interest from 74 local and international firms during its first market sounding activity on May 14.
He said the strong participation of these railway operators, which span 14 countries, reflects the confidence of the private sector in managing the country’s busiest railway.
Unlike other PPP projects of the DOTr, where there is uncertainty in terms of return on investment, Batan said it is no secret that the MRT-3 would be financially viable for investors given its high ridership and demand.
At present, the MRT-3 is able to serve up to 400,000 passengers across Metro Manila every day. There are also instances when average daily ridership reaches as high as 630,000, according to the DOTr.
“In terms of ridership, in terms of demand, we are confident that these are present in the MRT-3, and I think that’s the reason, that viability, is why so many attended our market sounding,” Batan said in a recorded interview.
The DOTr is planning to bid out the PPP for the MRT-3—which would cover the railway’s capacity expansion, operations and maintenance—through a competitive solicited bidding process by October.
As part of the project, the DOTr wants the company that will assume management of the MRT-3 to ensure continued operations without interrupting service.
In line with this, the winning bidder is expected to upgrade existing signaling, depot, power and communication systems, as well as introduce new rolling stock.
This includes the deployment of Dalian trains, the majority of which have remained idle for more than a decade, to expand the MRT-3’s capacity to 700,000 passengers per day.
In addition, the operator will also manage the MRT-3’s portion of the common station project, which would connect Metro Manila’s three railways once it finally begins operations.
At present, maintenance and rehabilitation works on the MRT-3 are being implemented by Japan’s Sumitomo Corp. until 2027, paving the way for the winning bidder to operate the railway afterward.