The Department of Transportation and Communications (DOTC) said it is looking for consultants, who would help the government implement its rehabilitation and expansion program for the Metro Rail Transit (MRT) System.
MRT Spokesman Hernando T. Cabrera said the government has earmarked P50 million for the services of a consulting firm, which would help the DOTC address pressing problems being faced by the train line’s management.
“The consulting firm would provide any and all assistance and guidance in all matters of the operations and maintenance of the mass-transit system,” Cabrera said.
“The consultant would also extend assistance in the conceptualization, procurement, and implementation of any and all programs and projects for MRT 3,” he added.
Consulting firms have until February 6 to signify their interest to the DOTC.
Aside from the services of consultants, the P9.7-billion rehabilitation and expansion program also includes the purchase of additional train coaches, general overhauling of trains, ancillary systems upgrade, signaling system upgrade and rail-steel replacement.
The government also wants to upgrade MRT 3’s conveyance facilities; construct a footbridge for the North Avenue Station; install weather-protection cladding, establish a passenger information system; and purchase passenger hand straps.
The complete makeover of MRT 3 is targeted to be completed before President Aquino steps down from office in 2016. Currently, the DOTC is procuring 60 units of traction motors for the MRT. The deal is priced at P91.67 million.
Meanwhile, Metro Pacific Investments Corp. (MPIC) President Jose Ma. K. Lim said the company will soon submit its $524-million proposal to upgrade the MRT 3 to the DOTC.
The local unit of the Hong Kong-based First Pacific Co. Ltd. wants to shoulder the cost of upgrading the MRT and free the government from paying billions of pesos in equity rental payments.
Metro Pacific Business Development Officer John B. Echauz said the offer was scaled down, after the company decided to remove the automated fare-collection system in its proposal.
The unified ticketing-system project was auctioned off by the transportation agency in 2013, and was awarded to the consortium between Metro Pacific and Ayala Corp. in 2014. The $524-million proposal also included the $30-million working capital and the $229-million budget for the settlement of the government’s equity rental payment.
The group of businessman Manuel V. Pangilinan earlier entered into a partnership agreement with the corporate owner of the MRT, a move that would have allowed the firm to invest roughly $600 million to improve the services of the train system. The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimillion-dollar expansion plan would double the capacity of the line to 700,000 passengers a day, from the current 350,000 passengers daily.
It was submitted in 2011, but the DOTC chief back then rejected the proposal. The government, on the other hand, intends to buy out the corporate owner of the line, the Metro Rail Transit Corp., which is wholly-owned by MRT Holdings II Inc. of businessman Robert John L. Sobrepeña.
The government aims to completely take over the line by the time President Aquino steps down from office in 2016. But recent delays, including the “tying up of loose ends,” are forcing the government to double its efforts to effect the buyout. One of the requirements to execute the takeover is for the government to strike up a compromise deal with the private owner of the train line.
This would effectively end the ongoing arbitration case in Singapore that was lodged against the government in 2008 due to its failure, as the operator of the line, to pay billions of equity rentals payment to the owner of the rail system.
Should the buyout be completed in 2016, the transportation agency may then bid out the operations and maintenance contract of the line and tap private-sector efficiency and customer-service orientation for operational needs, while retaining regulatory functions for passenger protection with the government.
Since 2004, the train system has been operating at overcapacity. Currently, the line serves nearly 550,000 passengers per day.