The Transportation Department said Monday it is set to meet with the Finance Department next month to resolve issues raised by two government banks over the takeover of Metro Rail Transit Line 3.
“We are hoping [to buy out MRT Corp. by June] and we have set up a meeting first week February with the DoF,” Transportation Secretary Joseph Emilio Abaya said in a text message.
Abaya said the remaining challenge was the financial issue raised by Land Bank of the Philippines and Development Bank of the Philippines on possible losses once the government executed the buyout.
LandBank and DBP own a combined 80-percent economic interest in MRT 3, while the remaining stake is held by creditors of MRTC.
Abaya earlier said the government would need over P40 billion to take over MRT 3, down from as high as P53.9 billion two years ago.
President Benigno Aquino III issued Executive Order No. 126 in 2013, directing the Transportation and Finance Departments to buy MRTC out of MRT 3, under the build-lease-transfer agreement.
Metro Pacific Investments Corp. earlier proposed a $524-million expansion of MRT 3, which was lower than the government’s $1.13-billion buyout plan. MPIC’s proposal has yet to be formally rejected by the Transportation Department.
Metro Pacific signed a cooperation agreement in 2011 with various groups holding rights and interests in MRT 3, including MRTC, Metro Rail Transit Holdings Inc., Metro Rail Transit 2 Inc. and Monumento Rail Transit Corp., giving the company led by businessman Manuel Pangilinan an option to acquire 48 percent. Metro Pacific has yet to exercise the option.
MRT 3, which runs along Edsa from North Avenue in Quezon City to Taft Avenue in Pasay City, serves 500,000 passengers a day, beyond its rated capacity of 350,000 passengers.
The line has a fleet of 73 Czech-made air-conditioned rail cars.
The Transport Department earlier awarded the P3.81 billion long-term maintenance contract of MRT 3 to the joint venture of Busan Transportation Corp., Edison Development & Construction, Tramat Mercantile Inc., TMICorp Inc. and Castan Corp.
The three-year contract will allow the new service provider to procure the necessary spare parts needed to increase the number of operating trains, especially during peak hours.