Metro Pacific Investments Corp. (MPIC) has asked the government to consider the expansion plan that it is proposing for the Metro Rail Transit Line 3 (MRT-3) buyout.
“Well, the buyout that has been contemplated by [the]government is in that equity value buyout,” said Jose Ma. Lim, president and chief executive officer of MPIC.
He added that, “What we proposed to government is for them to allow or to consider the expansion plan proposed by MPIC, and that does not invoke the equity value buyout [EVBO] because it works in the existing build-lease-transfer [BLT] agreement.”
Earlier reports said that the Department of Transportation and Communications (DOTC) and the Department of Finance have talks to finalize the takeover or the buyout of the MRT-3.
DOTC had said that the takeover of MRT-3 by the government is possible this year.
“Budget is okay, P56-billion [MRT 3 buyout price] DBM [Department of Budget and Management] has suggested. It is in the 2014 budget,” said Transport and Communications Secretary Joseph Emilio Abaya.
President Benigno Aquino 3rd has ordered the acquisition of all outstanding shares of stock and other securities issued by the Metro Rail Transit Corp. (MRTC) and other entities owning the MRT 3 pursuant to the BLT agreement.
MRTC holds the BLT agreement of the railway.
The Land Bank of the Philippines and the Development Bank of the Philippines hold a combined 80-percent economic interest in MRT-3.
On the other hand, MPIC has a controlling stake of 48 percent in MRTC after signing a cooperation agreement with various groups that hold the rights and interests in MRT-3.