Japanese investors interested in MRT-3 PPP project

By Sheldeen Joy Talavera, Reporter

AT LEAST 26 Japanese firms have expressed interest to invest in the planned Metro Rail Transit Line 3 (MRT-3) public-private partnership (PPP) project, according to the Department of Transportation (DoTr).

“The MRT-3 PPP is more than an investment opportunity — it is an invitation to potential investors to help reshape how millions of Filipinos can swiftly move every single day,” Transportation Secretary Giovanni Z. Lopez said in a statement on Thursday.

“We are committed to building a railway system our people rightfully deserve, and we look forward to partnering with the private sector to help make this vision a reality,” he added.

DoTr said several “reputable” firms made expressions of interest during the market sounding activity it conducted with the Asian Development Bank (ADB) in Tokyo, Japan last June 23. The ADB is the project’s transaction adviser.

There have been at least 74 local and foreign firms that have expressed intent by participating in market consultations for the operations and maintenance (O&M) of MRT-3.

MRT-3 is a 17-kilometer elevated passenger rail line with 13 stations that follow the alignment of Epifanio de los Santos Avenue (EDSA), a major thoroughfare in Metro Manila.

The Philippine government is seeking to privatize the O&M functions of MRT-3, with awarding of the contract targeted by early 2027.

DoTr previously said the winning bidder is expected to take over MRT-3 operations by October next year.

Nigel Paul C. Villarete, a senior adviser on PPPs at Libra Konsult, Inc., said the interest from Japanese firms is a welcome development as Japan is a leader in railway systems.

“In terms of railways, very few other countries can compare with Japan,” Mr. Villarete said in a Viber message. “They have always been the first to develop railways in Asia and remains one of the leading users of rail transportation.”

However, he noted that Japan’s trains are more expensive because they are built to a much higher standard.

“We still have our procurement procedures to follow which requires open bidding — meaning open to all suppliers, Japanese or otherwise, and they have to compete openly,” Mr. Villarete said.

Transportation Assistant Secretary for Railways Eduardo Danilo F. Macabulos said the MRT-3 PPP project represents only one part of “a growing pipeline of opportunities” that the private sector can participate in to help shape the future of the transportation sector.

“At the end of the day, our goal is actually very simple: to help people save precious time. It may sound like a simple objective, but if we can give millions of Filipinos even one or two hours back in their day, the impact on their lives can be enormous,” he said.

In the near term, the department hopes to open more O&M opportunities to private companies, such as the North-South Commuter Railway, Metro Manila Subway Project, as well as the upcoming Light Rail Transit-2  and Philippine Automated Fare Collection System PPPs.

These projects form part of the broader 30-year Railway Master Plan, which serves as the government’s long-term blueprint for building and improving the country’s train system.