Around 100 local and international companies have expressed interest in the proposed P103.6-billion concession for the Metro Rail Transit Line 3 (MRT-3) as the government prepares to bid out the project by mid-2027, the Department of Transportation (DOTr) said.
Transportation Secretary Giovanni Lopez said the government targets to award the concession by mid-2027 as part of efforts to modernize the EDSA rail line and improve services for commuters.
The DOTr, in partnership with the Asian Development Bank (ADB), has conducted market-sounding activities throughout the year to attract potential investors, including engagements in Singapore and Tokyo, Japan.
During these activities, the department presented the MRT-3 Capacity Expansion, Operations, and Maintenance Public-Private Partnership (PPP) Project to prospective international investors.
The project aims to bring in private sector investment and expertise to improve the railway’s capacity, reliability, and operational efficiency.
“Through public-private partnership, we bring in the expertise and investment this line needs. What we need here is a partner with extensive experience in operating railways, for the benefit of the commuters. And I would like to clarify that the authority to set fares will remain with the DOTr,” Lopez said.
Under the proposed concession agreement, payments to the private operator will be tied to service delivery and compliance with prescribed performance standards.
These standards will cover train availability and reliability, on-time performance, and the cleanliness and proper maintenance of trains and facilities to ensure accountability for the quality of service provided to passengers.
The concession will also support the modernization of MRT-3 through the acquisition of new trains and the upgrading of it signaling system to increase capacity and improve operations.
Lopez said the MRT-3 concession would be offered as a stand-alone project and would not be bundled with the Light Rail Transit Line 2 (LRT-2).
The privatization initiative follows President Ferdinand Marcos Jr.’s directive to prioritize the modernization of MRT-3, which serves more than 388,000 passengers daily across 13 stations along EDSA.