SETS ASIDE OFFERS OF CONGLOMERATES: Solicited bid eyed for MRT

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The Department of Transportation (DOTr) is keen on pursuing a solicited bid for the management, operation and maintenance of the Metro Rail Transit line 3 (MRT-3).

This would set aside the unsolicited proposals submitted by conglomerates San Miguel Corp. (SMC) and Metro Pacific Investments Corp. (MPIC).

Jaime Bautista, DOTr secretary, said the agency has tapped the Asian Development Bank (ADB) in finalizing the terms of reference on the bidding of MRT-3’s contract.

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“Most probably our direction is to do solicited bids. We have engaged ADB to help us refine the terms of reference,” Bautista told reporters last week.

Last month, MPIC in partnership with Sumitomo Corp., submitted an unsolicited proposal for the MRT-3.

SMC also has a pending unsolicited proposal which was submitted in  the previous administration.

Bautista explained  if there is more than one unsolicited proposal, the agency should pursue the solicited bidding.

This is in accordance with the Public-Private Partnership’s revised implementing rules and regulations.

“In case the government agency receives more than one unsolicited proposal involving the same or similar project prior to acceptance of the proposal as the original proponent, the agency may reject all such proposals or instead bid out the project as a solicited proposal,” the rules state.

At the recent Philippine Chamber of Commerce and Industry forum, Bautista urged the private sector to support the privatization of several railway projects, including the MRT-3 which will have a similar structure to the Light Rail Transit (LRT) line 1, which is operated by a private firm, Light Rail Manila Corp. (LRMC).

“We need the support of the private sector in the management and operation and maintenance of the rail system. For example, the LRT-1 has been managed and operated by LRMC. It’s the government that put up the structure and bought some of the trains and rolling stock but the day-to-day operation is handled by the private sector,” he said.

“MRT-3 right now is operated by the government as we still have an existing build-lease-transfer (BLT) contract with a private sector group which will end in July 2025. As early as now, we are working with the ADB for us to be able to identify and select a private sector who will run it, similar to LRT-1,” Bautista added.

The DOTr and Metro Rail Transit Corp. signed a BLT agreement in August 1997 to construct the mass rail transport system along EDSA. It took effect in 1999 and is  valid for 25 years.

Last June, the DOTr signed a P7.38-billion contract with Sumitomo Corp. and Oriental Consultants Global to extend the rehabilitation and maintenance of the MRT-3 for  two years.

 

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