The consortium of Metro Pacific Investments Corp. and Ayala Corp. proposed to take over the assets, operations and maintenance of Metro Rail Transit Line 3 in six months under an application it submitted as the original proponent to the government in July.
“MPIC, Ayala Corp. and Macquarie have submitted a proposal to the government last July 14. The unsolicited proposal is the total complete package with contract provisions because we were just lifting the same provisions of the concession agreement under LRT Line 1,” Rogelio Singson, president and chief executive of Light Rail Manila Corp., said.
“Our offer is lock, stock and barrel. We’ll take over just like Line 1. We will operate and maintain,” Singson said.
LRMC, a joint venture company of MPIC, AC Infrastructure Holdings Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. in September 2014 secured a 32-year concession to operate and maintain LRT 1 including the Cavite extension.
Singson said the consortium’s MRT 3 proposal was presented to Transportation Secretary Arthur Tugade and Finance Secretary Carlos Dominguez III.
“The offer is there. It makes a lot of sense to government. We will take out the responsibility from government. The offer is for us to take over and for another 32 years or 30 years of concession. We’re hoping the government will give the proposal a serious evaluation and give the proponent what is referred to as original proponent status,” Singson said.
“Once you’re given OPS, government can go through a Swiss challenge. Whoever wants to offer a similar proposal, there is a period, 90 days or maybe 120 days under existing rules that they have to go through a challenge and hopefully, if there is a challenge and there is a decision, hopefully, the best proposal comes out by the first quarter of next year. It could be as soon as four to six months that we have a new operator,” he said.
The MPIC-Ayala submitted an unsolicited proposal to Transportation Department to upgrade and rehabilitate MRT 3 system for P12.5 billion.
The consortium is also looking at buying out the stake of the government and private investors in MRT 3.
The government through Land Bank of the Philippines and the Development Bank of the Philippines own a combined 80-percent economic interest in MRT 3, while the remaining stake is held by creditors of Metro Rail Transit Corp.
MPIC in 2011 offered to buy out the shares of LBP and DBP in MRT 3 for $1.1 billion.
MPIC signed a cooperation agreement in 2011 with various groups holding rights and interests in MRT 3, including MRTC, Metro Rail Transit Holdings Inc., Metro Rail Transit 2 Inc. and Monumento Rail Transit Corp., giving the company led by businessman Manuel Pangilinan an option to acquire 48 percent. Metro Pacific has not exercised the option.
MPIC submitted a proposal to the Department of Transportation in 2011 to invest $524 million to rehabilitate and upgrade MRT 3. The Aquino administration, however, rejected Metro Pacific’s offer that would involve raising commuter fares.
MRT 3, which runs along Edsa from North Avenue in Quezon City to Taft Avenue in Pasay City, serves over 500,000 passengers a day, beyond its rated capacity of 350,000.
The line has a fleet of 73 Czech-made air-conditioned rail cars.
http://thestandard.com.ph/business/banking-report/245852/metro-pacific-ayala-eye-mrt-3-takeover.html
“MPIC, Ayala Corp. and Macquarie have submitted a proposal to the government last July 14. The unsolicited proposal is the total complete package with contract provisions because we were just lifting the same provisions of the concession agreement under LRT Line 1,” Rogelio Singson, president and chief executive of Light Rail Manila Corp., said.
“Our offer is lock, stock and barrel. We’ll take over just like Line 1. We will operate and maintain,” Singson said.
LRMC, a joint venture company of MPIC, AC Infrastructure Holdings Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. in September 2014 secured a 32-year concession to operate and maintain LRT 1 including the Cavite extension.
Singson said the consortium’s MRT 3 proposal was presented to Transportation Secretary Arthur Tugade and Finance Secretary Carlos Dominguez III.
“The offer is there. It makes a lot of sense to government. We will take out the responsibility from government. The offer is for us to take over and for another 32 years or 30 years of concession. We’re hoping the government will give the proposal a serious evaluation and give the proponent what is referred to as original proponent status,” Singson said.
“Once you’re given OPS, government can go through a Swiss challenge. Whoever wants to offer a similar proposal, there is a period, 90 days or maybe 120 days under existing rules that they have to go through a challenge and hopefully, if there is a challenge and there is a decision, hopefully, the best proposal comes out by the first quarter of next year. It could be as soon as four to six months that we have a new operator,” he said.
The MPIC-Ayala submitted an unsolicited proposal to Transportation Department to upgrade and rehabilitate MRT 3 system for P12.5 billion.
The consortium is also looking at buying out the stake of the government and private investors in MRT 3.
The government through Land Bank of the Philippines and the Development Bank of the Philippines own a combined 80-percent economic interest in MRT 3, while the remaining stake is held by creditors of Metro Rail Transit Corp.
MPIC in 2011 offered to buy out the shares of LBP and DBP in MRT 3 for $1.1 billion.
MPIC signed a cooperation agreement in 2011 with various groups holding rights and interests in MRT 3, including MRTC, Metro Rail Transit Holdings Inc., Metro Rail Transit 2 Inc. and Monumento Rail Transit Corp., giving the company led by businessman Manuel Pangilinan an option to acquire 48 percent. Metro Pacific has not exercised the option.
MPIC submitted a proposal to the Department of Transportation in 2011 to invest $524 million to rehabilitate and upgrade MRT 3. The Aquino administration, however, rejected Metro Pacific’s offer that would involve raising commuter fares.
MRT 3, which runs along Edsa from North Avenue in Quezon City to Taft Avenue in Pasay City, serves over 500,000 passengers a day, beyond its rated capacity of 350,000.
The line has a fleet of 73 Czech-made air-conditioned rail cars.
http://thestandard.com.ph/business/banking-report/245852/metro-pacific-ayala-eye-mrt-3-takeover.html
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