MANILA, Philippines – The government is eyeing to buy out private shareholders of the Metro Rail Transit Line 3 (MRT-3) by yearend, said Department of Transportation and Communications (DOTC) chief Joseph Emilio Abaya.
President Benigno Aquino III issued Executive Order 126 early this year, directing the DOTC and the Department of Finance (DOF) to acquire MRT-3 from Metro Rail Transit Corp. (MRTC) to save on rental payments, maintenance costs, debt payments, insurance expenses, and other costs.
With the government taking full control of the railway system, it will no longer have to pay MRTC huge fees every year. It paid MRTC P7.87 billion in 2010.
The takeover will also allow the government to bid out the operation and management of the railway.
Abaya said the deal will cost around P55 billion.
The Budget and Finance departments are in charge of raising funds to finance the acquisition, he added. – Rappler.com