THE Department of Transportation and Communications (DOTC), now headed by Secretary Manuel Roxas II, is studying three options for the privatization of the operations and maintenance (O&M) of Light Rail Transit 1 (LRT 1) and Metro Rail Transit 3 (MRT 3).
They can scrap the privatization, proceed with it, or privatize only the maintenance of the two railway systems in the metropolis.
“When the latest bid bulletin was issued, it was announced that the DOTC was deferring the opening of the bids to give the DOTC secretary a chance to review the implications of the proposed outsourcing of the O&M.
Along with that review, these possibilities came up. Another bid bulletin will be issued soon when a decision has been made on which option would be adopted,” a government official said.
A total of 16 bidders are vying for the P15-billion O&M bid contract of this administration’s first Public-Private Partnership projects lined up for the year. Each of the bidders paid the Special Bids and Awards Committee of the DOTC P510,000 for the bid documents and bid forms.
Should the agency decide to go with the first option, the official mentioned the possibility of a refund. “The Commission on Audit will have to be consulted on that,” he said.
If the DOTC decides the third option, the entire bid process will be reformatted. “It’s like going back to step one because it’s only the maintenance that will be auctioned,” said the official who requested anonymity.
On Friday Roxas ordered the shelving of the privatization plans for the railway systems pending a full review of the government’s capability to operate and maintain LRT 1 and MRT 3.
Roxas said it was “unclear if it [privatization] will benefit the government.”
The review will be undertaken by a team whose members will be picked by Roxas himself. Four members—all former DOTC undersecretaries—of the committee resigned last month. Roxas has yet to name their replacements.
There is a possibility that the agency may tap consultants to give their inputs in the ongoing review. “The secretary may just do that,” added the source.
The 16 bidders are Optimal Infrastructure Development Inc., a unit of San Miguel Corp.; Metro Pacific Light Rail Corp.; a unit of 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 S.p.A.; 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.
