DOTr plans to privatize bundled MRT-3, LRT-2 operations by 2025

By Darwin G. Amojelar

THE Department of Transportation plans to bundle and privatize the operations and maintenance of Metro Rail Transit Line 3 and Light Rail Transit Line 2 by 2025, an official said over the weekend.

“Our direction is 25 years to 30 years concession agreement for MRT 3, and we are studying to bundle it with LRT Line 2,” Transportation Undersecretary for Railways Cesar Chavez said.

“Our plan is to combine the good cake, and the not so good cake to make it attractive. We need to decide between

In Brief

Stock to move sideways on Q2 profits, July inflation

LOCAL stocks are expected move sideways this week as investors’ focus shift to secondquarter corporate earnings and July inflation report. Analysts said a strong second-quarter earnings could boost market sentiments in the second half of the year.

“Investors are expected to look forward to more Q2 corporate reports. Hopes that the upcoming Q2 corporate results would be strong may help in sustaining the market’s position above the 6,600 support line,” Philstocks Financial Inc. research head Japhet Tantiangco said.

Tantiangco said investors would also look towards the upcoming July inflation data.

“A continued downtrend in inflation is seen to spur optimism which in turn could lift the market higher,” he said.

The Philippine Stock Exchange index failed to break the 6,700 level last week because of the US Federal Reserve’s latest policy rate hike and its openness for further monetary tightening in September.

The index slipped 22 points or 0.34 percent week-on-week to close at 6,625.92.

Jenniffer B. Austria

CREBA calls for review of Balance Housing Act

HOMEBUILDERS and property developers called for a review of Republic Act No. 10884 or the Balance Housing Act which aims to strike a balance on housing production and the increasing cost of building homes.

The Chamber of Real Estate and Builders Association said the required socialized component of a home/housing project was outrun by the rising cost of construction materials and increase in labor costs.

“The intent of the law is to build houses, but developers cannot build under those terms right now,” said CREBA president Noel Cariño.

“That’s why we call for a review of private sector participation on the Balance of Housing of 5 and 15 percent for vertical developments and subdivisions, respectfully,” he said.

He said the industry was compliant with the directive of the Department of Human Settlements and Urban Development “on paper, but the question is does this really reflect genuine compliance.” The law encourages compliance, whether real deal compliance or alternative mode of compliance that is allowed by the government, or the developers would not be issued license to sell by the DHSUD.

Othel V. Campos

Nasugbu residents want Meralco as its distributor

RESIDENTS and establishments in Nasugbu, Batangas are asking for transfer of their electricity service to Manila Electric Co. because of alleged frequent power outages in the area.

Energy Regulatory Commission chairperson Monalisa Dimalanta said Nasugbu residents raised their concern to the commission. “They already told us about that, [but] that’s for Congress to decide,” Dimalanta said.

More than 22,000 residents signed the petition, representing nearly 70 percent of all households in the municipality. They urged the transfer of their electricity service from Batangas I Electric Cooperative to Meralco.

The residents sought the help of Nasugbu Mayor Tony Barcelon and authorized him to initiate discussions with Meralco, the country’s largest power distributor. The residents said having stable electricity from Meralco would uplifting their livelihood and improve their quality of life.

Barcelon conveyed the grievances of his constituents to both Batelec I and relevant government agencies overseeing electric cooperatives. Alena Mae S. Flores now and July 2024,” he said.

Chavez said the build-lease-transfer agreement between the government and Metro Rail Transit Corp., the builder of MRT 3, would lapse by 2025.

He said once the government decides to bundle the two rail systems, MRT 3 would be transferred to the Light Rail

Transit Authority which operates and maintains the LRT Line 2. Light Rail Manila Corp., a private consortium, operates Light Rail Transit Line 1 and is in charge of its expansion project.

The government operates MRT 3, while the MRTC, owned by Metro Rail Transit Holdings II Inc. led by businessman Robert John Sobrepeña, was responsible for the design and construction of the EDSA rail transit system.

Formed in 1995, MRTC started building MRT 3 in October 1996, completed it in December 1999 and started full operations in July 2020.

MRTC and the government through the Department of Transportation and Communications signed the BLT agree- ment in 1997 to construct and maintain MRT 3.

The partnership required the DOTr to hold the franchise and run the system, particularly the operation and the collection of fares. MRTC built the system, maintained the same to guarantee the availability of the trains at specified headway and specified hours and procured the required spare parts, while the government paid MRTC monthly fees for a certain number of years.

MRTC financed the construction of the modern rail system stretching along EDSA’s 10.5-meter median from North Ave. in Quezon City to Taft Avenue in Pasay City. The company infused P4.49 billion worth of equity into the project.