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News Top Stories MRT 3 builder seeks to restart buyout talks with government
News Top Stories MRT 3 builder seeks to restart buyout talks with government
| MRT 3 builder seeks to restart buyout talks with government |
| Tuesday, 24 June 2008 12:28 | |||
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The idea of buying out the rail transit was raised because the government can no longer afford to subsidize the train’s operations. The government is paying the consortium $3.4 million a month representing equity payment and $1.3 million a month for maintenance costs. “The negotiations collapsed last March, because the government did not agree with the price. But [on Tuesday], there was a meeting between the Department of Finance, Department of Trade and Industry and MRTC, we will revive the negotiations for the buyout,” Roberto Lastimoso, general-manager of Metro Rail Transit Authority told reporters. Lastimoso said MRTC initiated the revival of negotiations. MRTC, which owns the assets of MRT-3, is a consortium led by Fil-Estate, along with Ayala Land, Inc., Anglo-Philippine Holdings Corp., Ramcar Inc. and Greenfield Development Corp. On August 30, the government through the Departments of Transportations and Communication and of Finance entered into an agreement with the private consortium led by the Fil-Estate group to buy out the build-lease-transfer (BLT) contract of the MRTC for $865 million, ahead of the period stipulated in the concession agreement. “There was supposed to be a deadline, but it’s impossible,” Lastimoso said, referring to the MRTC deadline of end-March this year for the government to buy out the MRT-3 assets.
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