LOAN agreements and further consultancy contracts for the Metro Rail Transit Line 4 (MRT-4) project in Manila will now be signed next year, according to Mr Jaime Bautista, transportation secretary of the Philippines.

This is a year behind the initial target for concluding funding agreements, but Bautista gave no explanation for the delay.

The Philippine Star also reports that the Department of Transportation (DOTr) is due to close a $US 1bn loan from the Asian Development Bank (ADB) for the MRT4 project.

This loan has been included in ADB’s funding commitments for 2023, according to transportation undersecretary, Mr Cesar Chavez.

Detailed engineering design of MRT-4 has been undertaken by Idom Consulting, Engineering and Architecture.

Under the latest plans, the new elevated metro line will be 15.56km long, serving 11 stations. It will connect Quezon City and Pasig City in Metro Manila with the towns of Cainta and Taytay in Rizal.

Initial capacity will be for up to 234,000 passengers a day and the end-to-end journey time will be 27 minutes. MRT-4 is expected to play a key role in reducing traffic congestion in eastern Metro Manila, now home to an emerging business district.

MRT-3 operating contract

Meanwhile, Bautista says that DOTr has engaged ADB to assist with finalising the terms of reference for the future tendering of a contract to operate and maintain Manila’s MRT-3 metro line.

This follows an unsolicited proposal submitted in September by Metro Pacific Investments and Sumitomo. An earlier unsolicited proposal for MRT-3 had been made to the previous administration by the Philippine conglomerate San Miguel.

Under national regulations for public-private partnerships, government agencies receiving more than one unsolicited proposal for the same project may reject them and instead put the project out to tender as a solicited proposal.

The MRT-3 contract structure is expected to resemble that for Light Rail Transit Line 1 (LRT-1), which is operated under contract by Light Rail Manila (LRMC).

“We need the support of the private sector in the management and operation and maintenance of the rail system,” Bautista said.

“MRT-3 right now is operated by the government as we still have an existing build-lease-transfer (BLT) contract with a private-sector group which will end in July 2025.”

The 25-year BLT agreement that DOTr signed with Metro Rail Transit took effect in 1999.

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