News Release

Gov’t eyes public-private partnership scheme for LRT-2, MRT-3



To improve public service and enhance commuter convenience, the government is aiming to place the Light Rail Transit (LRT) Line 2 and Metro Rail Transit (MRT) Line 3 under a public-private partnership (PPP) scheme for the rehabilitation and modernization of the rail systems.

In a Palace press briefing, Department of Transportation (DOTr) Secretary Vince Dizon said on Thursday that bidding for the PPP scheme for LRT-2 may start this year, with advice from the International Finance Corp. (IFC) of the World Bank.

“Meron tayong plano na i-PPP na ito (LRT-2) sa susunod na taon. Sa pagkakaalam ko, meron nang mga kinausap ‘yung IFC ng World Bank, ‘yung ating adviser diyan. Ang pagkakaalam ko, within the year, masisimulan na natin ang proseso dahil ito ay ibi-bid out natin as a PPP,” Dizon said.

A separate PPP scheme is also in the works for the Metro Rail Transit (MRT) Line 3, assisted by the Asian Development Bank, Dizon said. He did not give a target date.

President Ferdinand R. Marcos Jr. had given the go-ahead to place both rail systems under PPP schemes in order to provide better service to the people, Dizon said.

“Ang PPP ay isa sa mga napaka-importanteng programa ng ating Pangulo. Talagang gusto nyang ma-PPP ang mga infrastructure natin, lalo na ‘yung operations and maintenance, dahil nga naniniwala siya, naniniwala tayo, na ang idudulot nito ay mas magandang serbisyo para sa ating mga kababayan,” Dizon added.

Dizon said the PPP would serve as the long-term solution to the problems experienced by the aging rail systems.

Having a private company operate and maintain LRT-2 would also prevent service interruptions like the one that hit the LRT-2 on Wednesday, Dizon said.

“Alam ninyo, hindi ganoon kadaling ayusin itong mga sistemang ito. Ang pangmatagalang solusyon talaga dito ay dapat i-PPP na itong mga sistemang ito kagaya ng LRT-2 at MRT-3. Iyon talaga ang pangmatagalang solusyon dahil habang ang gobyerno ang nag-o-operate nito, limitado tayo sa budget, limitado rin tayo ng ating mga procurement rules,” Dizon said.

“Ibig sabihin niyan, hindi ganoon kabilis ang ability natin na mag-ayos nitong mga sistemang ito kaya iyon talaga ang ultimate solution,” he stressed.

The DOTr chief assured the public that the government will still regulate any proposed fare increases after LRT-2 and MRT-3 have been placed under PPP schemes.

Upon the effect of the PPP schemes, government promos like the Pamilya Pass 1+3, as well as the 50 percent discount for students, would not be affected.

LRT-2 runs from Masinag in Antipolo to Recto in Manila, while MRT-3 runs from North Avenue in Quezon City to Taft Avenue in Pasay City.

LRT Line 1, which runs from Dr. A. Santos Avenue in Parañaque to Fernando Poe Jr. (formerly Roosevelt) station in Quezon City, is already being operated by a private company. | PND