Metro Pacific Investments Corp. (MPIC) is still keen to acquire the 35 percent stake of Ayala Corp. in Light Rail Manila Corp. (LRMC), which operates the Light Rail Transit line 1 (LRT-1).
Manuel Pangilinan, MPIC chairman, plans to buy Ayala’s stake in LRMC in line with its interest to join the bidding for the operation, maintenance and rehabilitation of Metro Rail Transit line 3 (MRT-3) in 2025.
“I think in principle we are (interested) for a number of reasons. One is the possibility of being able to bid for the MRT-3. I understand that the government wants to do what they did with NAIA (Ninoy Aquino International Airport) because we submitted an original proposal. I think they are taking a similar path to NAIA where there was an open bidding. That’s likely to be made in 2025,” Pangilinan told reporters.
MPIC, through Metro Pacific Light Rail Corp., holds a 55 percent stake in LRMC. Besides the 35 percent stake held by Ayala, the rest is owned by other members including Sumitomo Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Investments Holdings (Philippines) Pte. Ltd.
MPIC, as a member consortium, has the right of first refusal to purchase Ayala’s stake before this is offered to other interested parties.
“Well, to begin with, they have signified their intention publicly to divest. I think it is part of their overall… And I think it would be easier for us to move if it were majority-owned, fully under the control of MPIC,” Pangilinan said.
In September 2015, LRMC began operating the LRT-1 under the 32-year concession agreement with the Light Rail Transit Authority. Part of the agreement is the construction of the 11.7-kilometer Cavite Extension, with Phase 1 of the project slated to start operation by the fourth quarter of the year.
Last year, LRMC completed its first test run for the LRT-1 Cavite Extension Phase 1 aimed at providing a compatibility check and assess the interface between vital infrastructure components, such as the train pantograph and the overhead catenary system, train wheels and rail tracks, and the train and platforms, including other viaduct trackside structures.
Along with the train test runs, the five new stations under the 6.7-km Phase 1 project are in various stages of development.
The LRT-1 Cavite Extension project continues to shape up as it registered a 95 percent progress rate as of the end of October 2023 for the civil and system works.
