THE government has dashed all hopes of private-sector participation in the proposed expansion and modernization program of Metro Rail Transit Line 3 (MRT 3).
The decision affects separate proposals of San Miguel Corp. (SMC) and Metro Pacific Investments Corp. (MPIC) that earlier bared plans to upgrade and modernize facilities of the line stretching 16.9 kilometers across Makati City, Mandaluyong City, Pasay City and Quezon City.
According to Transportation Secretary Joseph Emilio Abaya, the SMC and MPIC proposals will no longer be pursued as the government has decided to buy out the interest of the private sector at MRT-3.
“SMC has a proposal and MPIC has its [own] proposal but our direction right now is for the buy-out to happen,” Abaya said of the plan on Friday.
Under the plan, the government will stop paying the Metro Rail Transit Corp. (MRTC) equity rental, maintenance cost and guaranteed debt payments as well as insurance expense and other items in a transaction seen costing the national coffers close to $1 billion.
Malacañang approved the plan last December and told the Department of Transportation and Communications to begin the buy-out transaction.
MPIC gained control over the MRTC when it acquired bond holdings of the Fil-Estate Group and offered to spend $300 million to expand and modernize the line and $350 million more to acquire equity and some debt notes issued by the MRTC.
SMC, on the other hand, offered to purchase new light rail vehicles for MRT-3 in exchange for revenues.
The buy-out plan will be executed under the leadership of Finance Secretary Cesar V. Purisima and will enable President Aquino to issue an executive order formalizing the agreement.
With the buy-out, the government would no longer be burdened by billions of pesos worth of fees paid the MRTC each year.
The buy-out would compel state-owned Land Bank and Development Bank of the Philippines to finally unload their MRT-3 shareholdings and heed a mandate from the Bangko Sentral ng Pilipinas to unburden themselves of their participation in the light-rail. –Jun Vallecera / Reporter, Businessmirror
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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