Govt bent on MRT 3 buyout – Abaya


The Department of Transportation and Communications (DOTC) on Tuesday said Metro Rail Transit 3 (MRT 3) equity value buyout is still possible.

“We have to see the final form of the budget and we’ll see what our options are,” DOTC Secretary Joseph Emilio Abaya told reporters.
He said the government has a Plan B but he refused to reveal what it is.

“We just couldn’t share. It’s going to be more of a legal approach to things but I’ve been briefed that there are other options,” Abaya added.

According to him,  the DOTC and the Department of Finance (DOF)  have to pursue the plan because President Benigno Aquino 3rd has signed an Executive Order mandating them to execute it.

“I think we still have enough time. Of course the reality is some guys obviously don’t welcome this but clearly, how could I renege on a presidential directive just because Congress decided not to give us as much fund? Mas malinaw sa akin yung utos ng Pangulo [The President’s order is much clearer to me],” Abaya said.

The DOTC earlier said the MRT 3 buyout may take place in the first week of January 2015.

The process, however, would have to be agreed upon by the Office of the Solicitor General, LandBank, Development Bank of the Philippines and the DOTC.

“For me, I think it’s clear. Even with the DOF, I spoke to Secretary (Cesar)  Purisima. Itutuloy natin (We will pursue this),” Abaya said.

The government’s long-term plan for the MRT 3 is to implement the equity value buyout  of the system’s private-sector owner Metro Rail Transit Corp. (MRTC) as provided for in the Build-Lease-Transfer (BLT) Concession Agreement.

Under Executive Order 167, the DOTC and DOF are designated to implement the buyout to put an end to an arbitration case in Singapore between the DOTC and MRTC.

The buyout will terminate the Concession Agreement and transfer ownership of the MRT 3 to the government, saving billions of pesos in equity rental payments paid annually to MRTC. The government will need P54 billion to gain 100 percent control of the MRT 3.

The DOTC started fast-tracking upgrades to the rail line in September, believing that modernizing and upgrading the MRT 3 would redound to the safety and convenience of passengers.

The major upgrades that are underway include the addition of 48 new train cars and the automation of the railway ticketing system.

The new train cars will increase passenger capacity by 66 percent.

“We’re not left with just one option, there are other options. We’ll see, we have to check what is there and then talk to the Department of Budget and Management and DOF,” Abaya said.


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  1. Eliseo Jr. P.Tenza on

    It is unwise to buy out the Operators of the MRT. If the operators are not performing they must be fined. The payments to them should be witheld, until their services improves. The money to be used to buy them out should be used to plan for additional MRT lines.. Metro Manila needs more MRT lines to solve the traffic problems of MM.

  2. Dapat pagtuunan ng Pansin ang mga may ari ng aptGlobal maintenance
    provider na ipinalit sa Sumitomo, na kahit alam na alam na lutong makaw
    ang negotiated transaksion ipinagpapatuloy parin ang kontrata at
    pagbabayad ng 20milyon dollar plus bawat buwan. Dapat e life style
    check ng BIR at ombudsman, ie. Marlo dela Cruz, Art Soriano, wilson
    devera, Federico Remo-EVP nuon ng Phil.exim bagamat kasama at
    director pa ng aptGlobal, kasabay na nanunungkulan bilang EVP ng
    PhilExim guarantee, malinaw na may conflict of interest pero malinis na
    naka resign matapos mabuko sa krimen, ang kicker nabigyan pa ng bonus
    at pension matapos mag resign. Natutulog ba sa pansitan ang COA,
    Ombudsman at BIR. Kitang kita ang ebidensiya sa dagling pagyaman ni
    Remo at mga anak na nagtatamasa sa katas ng kurapsyon.

  3. MRTC has not provided the efficiency of the transport system. There are little improvement in the infrastructures and there are numerous issues that led to government takeover. It is a wise move by government to deal with the issues head on. Obviously, the buyout will terminate the Concession Agreement and transfer ownership of the MRT 3 to the government. It will save the government billions of pesos in rental payments paid annually to MRTC. The government may later on transfer the operation to a more cost effective private corporation through public bidding.

    • mr jt. ang team penoy nina mar roxas at mr pabaya ang gumawa ng
      problema ng mrt, dahil yung nag mamay ari ng systema nagbigay
      ng proposal kasama ang sumitomo na aayusin nila ang mga
      nalulumang makina at instrumento ng walang gastos at bibili ng
      bagong rolling stocks o bagon, pero ni ni reject dahil hindi malinaw
      ang tong pats. Ang ginawa nina vitangcol na aprobe kay mr
      abaya pinalitan ang maintenance provider na sumiitomo ng kaka
      tatag na kumpaniya na walang kakayahang technical at financial.
      Tiyak kung bibilhin ng gobyerno yan isang fund raising magic na
      naman ang magaganap. Abangan ang susunod na kabanata.

  4. Roldan Guerrero on

    Good Luck Sec. Aberya! It is for sure more blessings will come into your hands if the deal you are planning will prosper and materialize. You will have a better chance to boost your 2016 political campaign once it is done. BILLIONS and BILLIONS of PESOS again will bolster your furtunes. We the Filipino People are praying very hard that your KARMA will come your ways very soon!

  5. This idea of shelling out P54 Billion to buy out MRT is a waste of taxpayers’ money. Even when this MRT becomes 100% government-owned, it will still be as rundown and poorly maintained as before. This inept and corrupt government is incapable of making anything run competently.

    Leave the MRT alone for its owners to manage, and use the P54 billion for a Bus Rapid Transit system (BRT) like the one used successfully in Curitiba. Brazil to ease our suffocating traffic gridlock in Metro Manila. Or use the P54 billion to build a new LRT line.