MPIC-Ayala cannot get MRT-3 through unsolicited proposal – group

THE AYALA-MPIC consortium seeking to takeover management of the MRT-3 cannot proceed through a mere unsolicited proposal under the amended BOT (Build-Operate-Transfer Law.”

Terry Ridon, National President and General Counsel of Kabataan Partylist, issued the statement as he criticized the unsolicited proposal as a “one-way ticket to unregulated fare increases detrimental to public interest.”

“Under Sec. 4-A of R.A. No. 7718, the governing law on unsolicited proposals, unsolicited proposals may be accepted by any government agency only upon the following conditions –

(1) such projects involve a new concept or technology and/or are not part of the list of priority projects,
(2) no direct government guarantee, subsidy or equity is required, and
(3) the government agency or local government unit has invited by publication, for three (3) consecutive weeks, in a newspaper of general circulation, comparative or competitive proposals and no other proposal is received for a period of sixty (60) working days:

Provided, further, That in the event another proponent submits a lower price proposal, the original proponent shall have the right to match that price within thirty (30) working days.”

Ridon said that the mere management takeover from Fil-Estate to the MPIC-Ayala consortium does not in any way involve the implementation of a new concept or technology, which is the first requirement for any unsolicited proposals to even be considered.

“The MPIC-Ayala consortium will only be using the same technology utilized by the current railway management, even if new coaches will be procured or massive rehabilitation will be undertaken.”

Ridon warns of a renewed firestorm of protests if the unsolicited proposal proceeds despite its patent illegality.

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