MRT-3 privatization eyed by mid-2027 under P103.6-billion deal

TRAIN. Commuters crowd the MRT at the Araneta Cubao Station during the first day of the work week to avail of the month-long free train ride implemented by the government, on March 28, 2022.

Jire Carreon/Rappler

Transportation Secretary Giovanni 'Banoy' Lopez says the government would retain control over fares of MRT-3 under the proposed arrangement.

MANILA, Philippines – The Metro Rail Transit Line 3 (MRT-3) may be privatized by mid-2027, with the Department of Transportation (DOTr) set to bid out the train line under a P103.6-billion public-private partnership project this year.

The decision to privatize the train line comes after President Ferdinand Marcos Jr.’s order to prioritize the modernization of MRT-3.

DOTr Secretary Giovanni “Banoy” Lopez said the government would retain control over fares of MRT-3 under the proposed arrangement.

“Through public-private partnership, we bring in the expertise and investment this line needs. Ang kailangan natin dito ‘yung may matagal nang experience sa pagpapatakbo ng riles para sa kapakinabangan ng mga komyuter. At lilinawin ko po, mananatili pa rin sa DOTr ang pagtatakda ng pamasahe,” Lopez said in a statement released on Friday, October 23.

(What we need here is an entity with extensive experience in operating railways for the benefit of commuters. And let me make this clear, the DOTr will still be responsible for setting fares.)

Under the arrangement, a private company will be responsible for operating, maintaining, and upgrading the railway under a concession agreement. The project includes replacing trains and upgrading the signaling system to improve the line’s capacity, reliability, and efficiency.

Payments to the private operator, or concessionaire, will be linked to its delivery of services and compliance with performance standards covering train availability, reliability, cleanliness, and maintenance. The agreement is intended to hold the operator accountable for the quality of service it provides to commuters.

The DOTr said about 100 local and international companies have already expressed interest in the MRT-3 project. – Rappler.com