MRT-3 O&M privatization target set for next year

THE Department of Transportation (DoTr) said it hopes to privatize the operations and maintenance (O&M) functions of Metro Rail Transit Line 3 (MRT-3), with a target to award the contract by July 2027.

Transportation Acting Secretary Giovanni Z. Lopez told BusinessWorld that the DoTr aims to award the contract between June and July 2027, with the winning bidder set to take over the operations of the rail line by October next year.

The Public-Private Partnership (PPP) Center and the DoTr have scheduled market consultations for the MRT-3 PPP project on May 14-15, and May 18.

Mr. Lopez said the DoTr hopes to obtain approval from the Economy and Development Council by August or September, with the auction to be launched by October, and bid submissions due by March 2027.

According to the PPP Center, the MRT-3 O&M contract’s scope covers the rail line’s rolling stock fleet, stations, depot and other systems and infrastructure.

This includes the collection of passenger fares to be remitted to the government, the exercise of commercial rights within prescribed station boundaries with a government share of gross revenue, and the government’s payment of availability fees.

The DoTr had initially aimed to initiate the bidding process for the operations and maintenance of the MRT-3 before the expiration of its build-lease-transfer (BLT) agreement with the Sobrepeña-led Metro Rail Transit Corp. (MRTC) in July 2025.

Under the BLT concession, the DoTr holds the franchise and manages operations and fare collection, while MRTC builds and maintains the system in exchange for regular payments from the government. Following the contract’s expiration, the ownership and operations of MRT-3 have been transferred to the government. 

Meanwhile, in a statement on Monday, the DoTr said over 50 international firms have expressed interest in participating in key PPP transport projects, particularly the automated fare collection system project, as well as the Davao Public Transport modernization project which also includes an automated fare collection system component.

The P9.5-billion Philippine Automated Fare Collection System, which is still in the initial stages of project preparation, covers the establishment of a nationwide fare collection system to be integrated into the urban transportation system. — Ashley Erika O. Jose