DOTR: Only MRT3's operations and maintenance being studied for privatization

The Department of Transportation (DOTr) clarified on Wednesday that only the operations and maintenance of Metro Rail Transit 3 (MRT3)are being considered for privatization, not the entire railway system.

"In response to news reports alleging that MRT-3 is up for sale, the Department of Transportation clarifies it is considering the possibility of turning over the Operations & Maintenance (O&M) of MRT-3 to qualified private sector operators towards improving its operational efficiency," Transportation Secretary Jaime Bautista said in a social media post.

"We are looking at partnering with private rail operators for DOTr MRT-3’s operations and maintenance  under the same scheme with LRT 1  with the rail lines assets remaining government owned," Bautista added.

The Transportation chief also said “railway systems should remain the most affordable and safest mode of mass transit in the country.”

The department said privatizing MRT3's operations and maintenance is expected not only to enhance efficiency and safety but also reduce operational cost to be able to maintain affordable fares.

Currently, operations of LRT 1, LRT 2, MRT3 continue to be subsidized by government through the annual budget.

Earlier, DOTr Undersecretary Cesar Chavez said an increase in the fare of MRT3 is inevitable even without its privatization due to the rising cost of spare parts and electricity.

“It is not only necessary but inevitable that at a certain point in time, ay kinakailangang itaas ang pamasahe. Ang tanong na lang, magkano ang itataas at ano ang kapalit nito–magandang serbisyo,” he told radio dzBB in an interview.

The plan to privatize MRT3 is one of the proposals being studied by the government as the Metro Rail Transit Corporation's build-lease-transfer contract is set to end in 2025.

Chavez said the discussions on such a plan are still at the DOTr level and will eventually proceed to the National Economic and Development Authority (NEDA).—Sherylin Untalan, Richa Noriega/LDF, GMA News