MANILA, Philippines - The group of telecommunications magnate Manuel V. Pangilinan, said it respects the government’s decision to gain full ownership of the Metro Rail Transit 3 along EDSA.
“We will cooperate with the government,†said Metro Pacific president and chief executive officer Jose Ma. K. Lim when sought for comment on the government’s plan to exercise its right to buy the private sector out of MRT-3.
In an interview with ANC, Transportation Secretary Joseph Emilio Abaya said the Department of Finance (DOF) has already transmitted the terms of the proposed P1-billion equity buyout transaction to the Office of the President and expects the E.O. (executive order) to be issued anytime soon.
“An EO has been prepared by (Finance) Secretary (Cesar) Purisima, it’s in the office of the President. We both followed up on it and I think the President is pretty much about to hold the pen,†Abaya said
Metro Pacific, which proposed to take over the MRT-3 by buying out the stake of the government, would no longer assert its legal right to undertake the line’s expansion in order to allow the government to expand the train capacity as quickly as possible.
The government currently owns around 80 percent of the economic interests in Metro Rail Transit Corp., the consortium that built MRT-3.
Prior to the announcement of the buyout plan, MPIC had offered the government $300 million to expand the capacity of the MRT 3 and $350 million for the acquisition of equity and some of the bonds issued by the MRTC.
The MRT carries over half a million commuters daily, higher than what the system can actually handle. The line spanning Baclaran to Monumento is built to accommodate only 350,000 passengers a day.
Once the government takes over the MRT3, the DOTC will privatize the operations and maintenance of the train service through a public-private partnership.