By J.C. BELLO RUIZ
In a bid to save more than P1.7 billion for the government, the Department of Transportation and Communications (DoTC) headed by Secretary Leandro Mendoza has finally decided to formally recommend to Malacañang the purchase of the modern railway system, the Metro Rail Transit Line 3 (MRT 3).
MRT 3, which travels the stretch from North Ave., Diliman, Quezon City, to Pasay City rotunda, was built at a cost of $655 million.
DoTC Undersecretary for Rail Transport Guiling Mamondiong announced last Friday the decision after a long and thorough study was conducted by an inter-agency team formed by Malacañang to explore the possibility of buying the MRT-3 from a private consortium, the Metro Rail Transit Corp. (MRTC) which is led by the Fil-Estate Group.
The formal recommendation will be made on Oct. 2, he said.
Mamondiong said that buying MRT 3 is advantageous for the government because it would mean savings of more than P1.7 billion.
He said this is so because under the build-leasetransfer arrangement between the government and the MRTC consortium dating back to July, 2000, the consortium will be paid $2.4 billion a year for 25 years.
Mamondiong said that if the buyout pushes through, the government would offer theMRTC consortium $571 million, about P1.7 billion less than the amount the government would pay MRTC in 25 years.
His impression is that the MRTC has been open for a buyout since 2001.
The government is planning to float bonds to finance the buyout, Mamondiong said.
The Fil-Estate Group, one of the parties interested in the project, failed to comment on the proposed buyout.
The railway system now averagesf 400,000 to 500,000 passengers daily.
