Infrastructure conglomerate Metro Pacific Investments Corp. said Friday it submitted a fresh proposal to rehabilitate Metro Rail Transit Line 3 under the administration of President-elect Rodrigo Duterte.
Metro Pacific, the local unit of Hong Kong-based First Pacific Co. Ltd., said in a disclosure to the stock exchange it would pursue the proposal to rehabilitate MRT 3 on its own.
“We wish to clarify that while MPIC holds option rights to acquire all the interest of the Fil-Estate Group in MRT 3, there is no agreement on a partnership between MPIC and Mr. Sobrepeña in undertaking the rehabilitation and improvement of the MRT 3 project,” Metro Pacific said, referring to Fil-Estate and Metro Rail Transit Holdings chairman Robert John Sobrepeña.
Metro Pacific said its own proposal would be the most beneficial solution to the problems plaguing the mass transit line.
“Furthermore, we are advised that Mr. Sobrepeña has submitted an alternative proposal regarding MRT 3. Despite this, MPIC intends to pursue its own proposal with the new administration, which proposal it believes to be the most beneficial solution. It has in fact re-submitted its proposal and will of course give due regard to the inputs from the incoming administration,” it said.
Metro Pacific first submitted a proposal to the Transportation Department in 2011, offering $523-million investments to rehabilitate and upgrade MRT-3. The Aquino administration rejected Metro Pacific’s proposal and opted for an equity value buyout of MRT 3.
The Transportation Department decided to pursue the buyout, but Congress did not approve the P53.9-billion allocation in the 2015 budget for the government’s takeover of MRT.
President Benigno Aquino III issued Executive Order No. 126 in 2013, directing the Transportation and Finance Departments to buy the private sector out MRT 3, pursuant to the build-lease-transfer agreement.
Metro Pacific signed a cooperation agreement in 2011 with several 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 First Pacific unit an option to acquire 48 percent. It did not exercise the option.
State-run Land Bank of the Philippines and Development Bank of the Philippines hold an 80-percent economic interest in MRT 3, while creditors of MRTC own the remaining stake.
MRT 3, which runs along Edsa from North Avenue in Quezon City to Taft Avenue in Pasay City, serves 500,000 passengers a day, way beyond its rated capacity of 350,000.
The line has a fleet of 73 Czech-made air-conditioned rail cars.
Metro Pacific said while it had option rights to acquire all the interest of the Fil-Estate Group in MRT 3, there was no agreement on a partnership with the Sobrepeña-led group.
Metro Pacific chairman Manuel Pangilinan earlier said the company could exercise the option to acquire a substantial stake in Metro Rail Transit Corp. led by Sobrepeña, once the government approved the proposal to expand the MRT 3 system. With Darwin G. Amojelar