MRT consortium resumes talks with gov’t on Phase 2 extension

Metro Rail Transit Corp. (MRTC), the consortium that operates the MRT-3 along EDSA, will resume negotiations with the government with respect to its plan to pursue the railway’s extension from North Avenue to Monumento in Caloocan.

MRTC chairman and chief executive officer Robert John Sobrepeña told reporters that the company will try to convince the Department of Transportation and Communication (DOTC) to reconsider its decision to subject Phase 2 of the MRT-3 project to a Swiss challenge or a bidding process.

A Swiss challenge is a mechanism that allows other interested entities to submit offers that are better than that of the original proponent. The current operator, however, is allowed to adjust its proposal to beat that of the lowest bidder.

Sobrepeña said MRTC should be allowed to build the extension of the MRT-3 because this was part of the supplemental agreement it had entered into with the DOTC in 1999.

The Department of Justice, however, came out with a ruling that the supplemental agreement entered by the MRTC and DOTC for the construction of the extension project had already lapsed. For this reason, the MRT Phase 2 project had to be subjected to another public bidding.

But Sobrepeña said he is hoping that DOTC will reconsider. MRTC has submitted a proposal for the construction of the MRT-3 extension for $213.99 million.

MRTC, a consortium led by Fil-Estate and composed of Ayala Land Inc., Anglo-Philippine Holdings, Ramcar Greenfield Development, Allante Realty and DBH Inc., earlier threatened not to interconnect both lines unless it is awarded the contract to build Phase 2.

Pending a final opinion of the DOJ on the matter, the DOTC has been preparing the terms of reference for the bidding of the extension project.

The MRT Phase 2 is supposed to bring MRT 3 in full circle with Light Rail Transit (LRT) 1 as it will run some five kilometers from North Avenue to Roosevelt, Balintawak and Monumento.

With the MRT-3 linked to the LRT-1, the ridership may double to reach 600,000 passengers a day.

MRT-3, at present, carries about 350,000 passengers daily.

The Arroyo administration had earlier set 2004 as the deadline for the completion of the construction of the project.

DOTC Assistant Secretary Robert Castañares said that interconnecting the various railway lines would redound to the good of the riding public and the operators of the metro trains.

President Arroyo has already given the go-signal for the construction of the 5.12-kilometer extension of the existing 16.9-kilometer MRT-3

The extension project will be implemented under the build-transfer (BT) scheme under the build-operate-transfer law.

It will involve civil works, system designs, communication system, automated fare collection system, escalators and elevators and closed-circuit television and others.

The government, under the build-lease-transfer (BLT) contract, is operating the MRT-3 on an 18-hour basis, six hours of which are peak hours.

Show comments