MPIC, San Miguel submit bids for MRT3 takeover as DOTr works on solicited mode

Conglomerates led by Manuel V. Pangilinan and Ramon Ang have submitted unsolicited bids to take over the operations of the Metro Rail Transit Line 3 (MRT3), while the Department of Transportation (DOTr) is working on opening the privatization of the railway system through a solicited mode.

In a chance interview with reporters, Transportation Undersecretary for Planning Timothy John Batan said the agency received the unsolicited proposal of Pangilinan-led Metro Pacific Investments Corp. (MPIC).

However, Batan said, “We just note that there was a previous submission from the previous admin.”

The DOTr official said San Miguel Corp. (SMC) also submitted an unsolicited proposal for MRT3’s operations and maintenance (O&M) contract.

Batan also revealed that SMC was already  granted an original proponent status (OPS) for its bid.

Under a Swiss Challenge scheme, a procurement system for unsolicited proposals, the original proponent has the right to match competitive proposals.

With competing proposals for MRT-3’s O&M, Batan said the DOTr is consulting with the Public-Private Partnership (PPP) Center “on how to properly address this.”

“There are rules on how to handle multiple unsolicited proposal submissions. We are just confirming with the PPP center,” he said.

The unsolicited proposals, however, were not yet endorsed to the Investment Coordination Committee, which will then recommend it to the National Economic and Development Authority (NEDA) Board — chaired by the President — for approval.

“Earlier our direction has been to pursue a solicited proposal. So, we are actually working with ADB (Asian Development Bank) on a solicited MRT,” Batan said.

The DOTr official referred to the government’s plan to privatize Ninoy Aquino International Airport’s (NAIA) O&M, which also received multiple unsolicited proposals, but eventually decided to do it through a solicited scheme.

“You have to remember si NAIA before sunod-sunod ang unsolicited proposals (unsolicited proposals came one after the other). There are rules on how to address it. We'll address it according to rules,” Batan said.

Bundle MRT3 and LRT2

The Transportation official, moreover, divulged the DOTr’s plan to “bundle” the O&M contracts for MRT3 and Light Rail Transit Line 2 (LRT2).

“What we can say is that we have been working on a solicited [mode]… We will bundle MRT3 and LRT2. We are in the process of engaging ADB for that,” Batan said.

“We are targeting to formally engage ADB. We are actually engaging ADB and IFC — International Finance Corp of the World Bank. ADB for MRT3 and IFC for LRT2. So they will be working together on the intended bundled solicited [bidding]. If you look at the process we went through with NAIA, you can get an idea on how much it will take,” he said.

“We will, of course, try to work as fast as we can. Remember, the directive of the President to us is ‘full speed ahead’,” he added.

Batan said the DOTr is targeting to finalize the solicited version of the MRT3 and LRT2 bundled O&M contract.

“Remember what we did for NAIA. We processed the unsolicited [proposals] as if there was no solicited and we processed the solicited [proposals] as if there was no unsolicited. Then we elevate them both to the ICC and to NEDA Board, then that decision on how to move forward will be made,” he said.

To recall, the NEDA Board approved the DOTr’s proposal to privatize the operations of NAIA through a solicited bidding, rendering the unsolicited proposal of the Manila International Airport Consortium (MIAC) “de facto closed.” 

On the decision to bundle the contracts for MRT3 and LRT2, Batan said the option was taken since “the two lines are not competing.”

As early as February, the DOTr announced plan to privatize MRT3 as the build-lease-transfer (BLT) contract with the private sector owner of the EDSA railway system will lapse in 2025. —KG, GMA Integrated News