THE transportation department under Secretary Mar Roxas will pursue the operation and maintenance (O&M) bid contract for Light Rail Transit Line 1 (LRT 1).

The maintenance of Metro Rail Transit (MRT), which runs through Edsa, will be auctioned to interested private firms but its operations will continue to be handled by the government.

“LRT is fully owned by the government so it will be easier to bid it out. The MRT situation is more complex, however, because while it is clearly owned by the MRTC [Metro Rail Transit Corp.], a private entity, there is a dispute on who owns or controls it. So for now, it is more prudent to bid out for privatization only its maintenance,” Roxas said in a text message.

Sixteen bidders have qualified for the P14-billion O&M contract of the two railway systems. They each paid P510,000 for the bid documents.

The bidders, Roxas said, will be informed of the agency’s decisions “once these are finalized.” “Their monies will be refunded [if they lose in the bid]” he said.

The 16 bidders are Optimal Infrastructure Development Inc., a unit of San Miguel Corp.; Metro Pacific Light Rail Corp., a unit of the Pangilinan-led Metro Pacific Investment Corp.; Mitsubishi Corp., Autre Porte Technique Global Inc.; England’s Serco Group Plc.; Marubeni Corp.; Sumitomo Corp.; Spain’s Construcciones Y Auxiliar de Ferrocarilles SA; Italy’s Finmeccanica SpA.; Ayala Corp.; Ecorail Transport Services Inc.; Abratique  & Associates Philippine Inc.; DM Consunji Inc.; Jorgman Planning and Development Corp.; Kempal United Corp.; and Gracia Y Carided Ministry Foundation.

The scheduled proclamation of the winning bid in July was deferred owing the change in leadership at the Department of Transportation and Communications. Roxas shelved the privatization plans pending a full review of the government’s capability to operate and maintain the facilities.

“It is unclear if [privatizing the O&M] will benefit the government,” Roxas was quoted as having said.

The bidders are vying for the contract to operate and manage LRT Line 1 and MRT for four years, with an option to extend by one more year.

The bid contract for the LRT Line 1 and the MRT cost P7.7 billion and P6.3 billion, respectively.