The Philippine Department of Transportation (DoTr) said it aims to auction off the operations and maintenance (O&M) contracts for the Metro Rail Transit Line 3 (MRT-3) and the North-South Commuter Railway (NSCR) by the first quarter of next year.

The two concessions cover MRT-3, which runs along the EDSA corridor that bisects Metro Manila, and the NSCR, the flagship commuter railway designed to link Clark in Pampanga with Calamba in Laguna.

"We expect the bidding by next year," Acting Transportation Secretary Giovanni Z. Lopez told reporters on the sidelines of the Economic Journalists Association of the Philippines infrastructure forum on Monday.

The DoTr said it is currently engaging with potential bidders as part of market-sounding activities for the two projects.

"It is important to conduct the market sounding, because we will directly engage with potential bidders and what they need. Then you draft the terms of reference in a way that is reasonable to both parties," Mr. Lopez said.

In July, the DoTr said at least 10 companies had expressed interest in bidding for the O&M contract for the NSCR. It has said it is in discussions with Japanese rail operators, particularly Tokyo Metro Co., Ltd., as well as JR East and JR West, the operators of Japan's high railway network, the Shinkansen. The DoTr also said French transport company Keolis SA and rolling stock manufacturer Alstom signified interest in the NSCR O&M contract. The NSCR's development has been financed largely through Japanese official development assistance.

Potential bidders also include San Miguel Corp. and the Lopez group's construction company First Balfour, Inc., with the two companies attending the pre-bid conference for the NSCR project. Their attendance rounded out a field that spans international rail operators and homegrown conglomerates.

Meanwhile, Mr. Lopez said the DoTr will not bundle the O&M contracts of the MRT-3 and Light Rail Transit Line 2 (LRT-2).

"At this point in time, no (we are not bundling them) as the two rail lines are just too different," he said. The DoTr is, however, currently studying the possibility of bundling the O&M contracts of LRT-2 and MRT-3.

Under the DoTr's timeline, bid submission for the MRT-3 project is targeted for March. The contract is set for awarding between June and July, while the winning bidder is expected to take over MRT-3 operations by October next year. The publication of the terms of reference, to be shaped by the ongoing market sounding, is the next procedural milestone ahead of formal bid submissions in March.

According to information posted on the Public-Private Partnership Center website, the contractor for the capacity expansion, operations, and maintenance contract will take over the management of the MRT-3 line, including operations and maintenance, fare collection, and commercial rights within station areas, subject to revenue-sharing arrangements with the government.

The government had initially targeted launching the MRT-3 bidding process before the expiration of its build-lease-transfer agreement with Metro Rail Transit Corp. in July 2025. Following the contract's expiration, ownership and operations of MRT-3 reverted fully to the government. The coming auction will put the line's operations back in private hands for the first time since that reversion, now paired with a capacity-expansion mandate.

— Ashley Erika O. Jose, BusinessWorld