The Transport Department unveiled Friday a “comprehensive rehabilitation” plan for Metro Rail Transit 3 and Light Rail Transit 1 lines costing a combined $1.5 billion.
Outgoing Transport Undersecretary Ruben Reinoso told reporters the privatization of operation and maintenance of MRT 3 and LRT 1 was prelude to a bigger plan to rehabilitate and integrate the railway systems, implement a new fare collection scheme and extend LRT 1 to Cavite.
The department has set July 11 as deadline for the submission of bid documents for the O&M contract of the two train systems and Aug. 22 as the tentative schedule for the award. Forty-five domestic and foreign companies have expressed interest on the project but only 16 to date had secured bidding documents.
“These firms are preparing for the big one,” Reinoso said.
He said Transportation had estimated that the comprehensive rehabilitation of the train systems would cost $1.5 billion. The government is expected to shoulder $500 million of the cost and the private company winning the auction will assume the balance.
The project includes the extension of LRT 1 to Cavite, its integration with MRT 3 and the operation, maintenance and expansion of capacity of the integrated systems.
The department will grant a long-term concession to the winning company, which will then assume the ridership, market and commercial risks. The government will receive concession fees for the use of its assets by the concessionaire.
Meanwhile, Reinoso said the privatization of the O&M of MRT 3 and LRT 1 involved a monthly assessment of the delivered capacity and payment according to the contractor’s achievement of a performance target.
“If they fail to do so, there will be penalty. The government will not pay unless they perform,” he said.
Thirty-three to 40 trains are expected to run on peak hours for LRT 1 and 21 to 24 the whole day for MRT 3. The government has set a ceiling of P15 billion for the four-year outsourcing contract.
“The bidding parameter will be the cost,” Reinoso said, adding the government had set a ceiling of P15 billion for the entire four years of contract period. –Jeremiah F. de Guzman, Manila Standard Today
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos
July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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