DOTr to bid out MRT-3 concession

MANILA, Philippines — The Department of Transportation (DOTr) on Friday announced it will bid out next year the P103.6-billion concession for Metro Rail Transit Line 3 (MRT-3).

“Through public-private partnership, we bring in the expertise and investment this line needs,” Transportation Secretary Giovanni Lopez said in a statement by his agency. “What we need here is someone with extensive experience in operating railways for the benefit of commuters.”

DOTr also said the planned bidding “follows the directive of President Ferdinand Marcos Jr. to prioritize the modernization of MRT-3, given its vital role in transporting commuters across Metro Manila.”

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READ: MRT-3 resumes normal ops, offers free rides after technical issue

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Despite that privatization thrust, Lopez emphasized that DOTr will still have “the authority to set fares.”

He said the MRT-3 will be offered to the private sector as a standalone line and will not be bundled with Light Rail Transit-2 (LRT-2) which is connected with that line.

Performance standards

Under the concession agreement, payments to the concessionaire will be made following the delivery of services and compliance with prescribed performance standards.

Part of the modernization of MRT-3 will be the re-fleeting of trains and re-signaling of the system to improve capacity, reliability and operational efficiency.

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Performance standards will cover train availability and reliability, on-time performance, and the cleanliness and proper maintenance of trains and facilities.

DOTr said this will ensure that the private operator will be held accountable for the quality of service delivered to commuters.

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Solicited public bidding

San Miguel Corp. and Metro Pacific Investments Corp. (MPIC) had earlier expressed interest to enter into a joint partnership to develop MRT-3 and had also submitted separate proposals, with MPIC’s proposals dating back to Rodrigo Duterte’s presidency and even earlier.

But DOTr, then headed by Jaime Bautista, said in 2024 it favored a solicited public bidding over private unsolicited proposals.

The Lopez Group’s construction company First Balfour had also expressed interest in MRT-3, following its earlier rehabilitation of Light Rail Transit-1 after a 2018 agreement with Light Rail Manila Corp., operator of the transportation line.

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MRT-3 serves more than 388,000 passengers daily across 13 stations along the beltway Edsa, the department said. INQ