The Department of Transportation (DOTr) said it will be pursuing privatization of the LRT-2 and MRT-3 train lines to improve the facilities and services of the system.
In a Palace press briefing, Transportation 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 (public private partnership) 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.
Dizon said that they are ''waiting for the final report but as far as I know, within the year we'll start the process [of privatization] because we'll bid it out as a PPP."
Plans for a Public-Private Partnership (PPP) through the International Finance Corporation of the World Bank for the rehabilitation of the LRT-2 are also seen as long-term solutions to the outdated train system next year.
"The long term solution here is really to PPP the systems of the LRT 2 and MRT 3. This really is the long-term solution because while the government operates this, our budget is limited, our procurement rules also limit us. It means that our ability to fix such systems is not as fast so [PPP] is the ultimate solution... the International Finance Corporation of the World Bank is helping us to speed up the PPP," Dizon explained.
The increasing ridership of the LRT 2 and a planned extension to the North Harbor were also seen as reasons for the need for privatization and PPP of the LRT 2.
"The ridership of LRT 2 is increase although it isn't as high as LRT 1 and MRT 3 but because of its extension until Antipolo and the planned extension towards the North Harbor, I think that we need to PPP this so that the operations and maintenance of LRT 2 will be proper," Dizon added.
Dizon also said that there are also plans for the MRT 3 line, primarily serving the EDSA area, to be under the PPP program through the Asian Development Bank.
"The Asian Development Bank will be helping us for the PPP of the MRT 3 so that we can continue the proper operation and maintenance of these lines," Dizon said.
The LRT 2 is owned and operated by the government through the Light Rail Transit Authority,
The LRT-2 train line running from Antipolo to Recto with a daily ridership of more than 100,000 passengers temporarily stopped operations from its Cubao - Araneta Center station to its Antipolo station for almost eight hours on Wednesday morning due to technical issues. Velle White/DMS