DOTC to pursue MRT-3 buyout

Posted at Dec 31 2014 03:12 PM | Updated as of Jan 01 2015 02:25 AM

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MANILA - The Transportation Department will pursue the equity buyout of the Metro Rail Transit Line 3 (MRT-3) despite the Senate's rejection of government's proposed takeover of the train system.

The Senate Committee on Finance had realigned the P53.9 billion budget intended for buyout to other items in the national budget.

Transportation Secretary Jun Abaya said his agency would review the final form of the 2015 general appropriations act and look at a more legal approach for the buyout plan.

If the buyout happens, government might bid out an operations and maintenance contract for the MRT-3 while retaining regulatory functions.

It will also terminate the concession agreement and end government's annual obligation to pay billions of pesos in equity rental payments to the Metro Rail Transit Corporation.

--ANC Dateline Philippines, 31 December 2014