DoTr eyes PPP for LRT-2 West Extension project
THE Department of Transportation (DoTr) is considering implementing the Light Rail Transit Line 2 (LRT-2) West Extension project through a public-private partnership (PPP) arrangement, following the proposal to combine the train system with the Metro Rail Transit Line 3 (MRT-3).
“Karamihan kasi ng projects ng LRT-2 is ODA (official development assistance) -funded… pinagaaralan namin ngayon kung pwedeng i-PPP na ang West Extension project (Most of LRT-2’s projects are ODA-funded, and we are studying now if we can implement the West Extension project under PPP,” DoTr Undersecretary for Railways Cesar B. Chavez said in a chance interview on Tuesday.
In a previous interview, Light Rail Transit Authority (LRTA) Administrator Hernando T. Cabrera said the agency has been requesting the issuance of a budget document known as the multiyear obligational authority to signify a commitment to fund the LRT-2 West Extension project.
The P10.12-billion project, which will have three stations, will connect the current LRT-2 line that ends in Recto to Port Area, Manila.
However, Mr. Chavez said that the current plan is to bundle LRT-2 with MRT-3 for the privatization of the two train systems’ operations and maintenance.
“Kasi ang direksyon namin ngayon, yung LRT-2 and MRT-3 i-bundle na by 2025 and beyond and the Secretary approved it by principle (Our direction right now is to bundle LRT-2 and MRT-3 by 2025 and beyond which the [Transportation] Secretary approved in principle),” he said.
“So, our job now is to transfer MRT-3 assets to LRTA because remember MRT-3 is just a project under the Office of the Secretary; therefore, there’s no benefit of board review, approval, and checks and balances,” he added.
Mr. Chavez said that it is better to transfer the assets of MRT-3 to LRTA to have the guidance of different sectors.
“Sabi namin i-transfer na lang ito sa LRTA kasi nandoon ang NEDA (National Economic and Development Authority), andoon ang finance, ang budget and other members of the board with the private sector representatives (We said that we should transfer [MRT-3] to LRTA because that’s where NEDA, Departments of Finance and Budget and Management, board members with the private sector representatives are),” he added.
Once the assets are transferred, Mr. Chavez said that they can start the bundling of the operations and maintenance of LRT-2 and MRT-3.
DoTr Secretary Jaime J. Bautista said that his office “has already engaged ADB (Asian Development Bank) to help us identify who will be the operator of LRT-2 and MRT-3.”
The build, lease, and transfer agreement of the MRT-3 operator Metro Rail Transit Corp. is set to expire in 2025. — Justine Irish D. Tabile
