The Philippines Department of Transportation (DOTr) is preparing to issue a tender for a new operating and maintenance contract for the 17km Mass Rail Transit Line 3 (MRT-3) in Metro Manila. The current operating contract, held by Metro Rail Transit, will expire next year. The DOTr plans to start the procurement process by the first quarter of 2025.
Assisting in this effort is the Asian Development Bank (ADB), which is helping the DOTr finalize the terms of reference for the tender.
Several major Philippine conglomerates are expected to bid for the new contract, including San Miguel Corporation (SMC) and Metro Pacific Investments Corporation (MPIC). SMC is involved in constructing the 23km MRT-7 line from Quezon City to Bulacan, while MPIC owns a majority stake in the operator of Light Rail Transit Line 1 (LRT-1). Both MRT-7 and LRT-1 will connect with MRT-3 at the Grand Central station, which is currently under development.
Both SMC and MPIC have previously submitted unsolicited proposals to operate and maintain MRT-3. MPIC Chairman Manuel Pangilinan has indicated a willingness to form a joint bid with SMC.
A key challenge will be structuring the public-private partnership (PPP) contract to ensure it offers sufficient returns to attract private sector investment. Transportation Secretary Jaime Bautista has noted that the government might still need to contribute to operating costs to make the contract viable.
