Philippines transport department reviews bundled LRT-2, MRT-3 O&M plan

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LRT-2 and MRT-3 O&M review

Highlights

Department of Transportation is considering bundling LRT-2 and MRT-3 contracts as 74 firms express interest in the MRT-3 O&M bidding.
Solicited bidding for the MRT-3 concession is set to begin by October 2024, with contract award and operational turnover targeted for June-October 2027.
The MRT-3 concession includes capacity expansion, operations, maintenance, fare collection, and commercial rights, with revenue-sharing arrangements after the government regained full MRT-3 control post-July 2025.

Privatization review and bidding timeline

As reported by BusinessWorld Online, the Department of Transportation says bundling the two rail contracts remains an option while officials examine proposals at the technical level and try to avoid service disruptions while improving operations.

Undersecretary for planning and project development Teodorico Jose R. Delfin says the agency is revisiting the proposals because of new parameters for investments and for public-private partnerships. He says the department is currently focused on improving the system while planned privatization moves forward.

The department has also said combining the contracts could be difficult because LRT-2 and MRT-3 serve different markets. In May, the DoTr said about 74 domestic and foreign firms had expressed interest in the planned bidding for the MRT-3 operations and maintenance contract.

Based on the department's timeline, solicited bidding for the project may begin by October, with bid submissions expected by March 2027. The contract is targeted for award between June and July 2027, and the winning bidder is expected to take over MRT-3 operations by October 2027.

Scope of the MRT-3 concession

Information posted on the PPP Center website shows the contractor for the capacity expansion, operations, and maintenance deal will assume management of the MRT-3 line. That scope includes operations and maintenance, fare collection, and commercial rights within station areas, subject to revenue-sharing arrangements with the government.

The government had initially aimed to launch the MRT-3 bidding process before the build-lease-transfer agreement with Metro Rail Transit Corp. expired in July 2025. After that contract expired, ownership and operations of MRT-3 reverted fully to the government.

In our earlier article on Budget 2027 infrastructure plans for Negeri Sembilan, we explained how projects such as the KLIA–Bandar Enstek road, the Pajam–Nilai–Salak Road upgrade, and the Klang Valley Dual Track 2 were positioned to improve connectivity and support Malaysia Vision Valley 2.0. We also noted the focus on timely project delivery and complementary public-facility upgrades, including expanding healthcare capacity through the Rembau Integrated Health Complex.

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