The Metro Rail Transit 3 (MRT-3) is the cornerstone of the Department of Transportation & Communication's integrated strategy to alleviate the chronic traffic congestion experience along the EDSA corridor. The Metro Rail system is designed to carry in excess of 23,000 passengers per hour per direction, initially, and is expandable to accommodate 48,000 passengers per hour, per direction.
The DOTC awarded a contract to Metro Rail Transit Corporation (MRTC) to build, lease and transfer the Metro Rail Transit System, under the BOT laws of the Republic of the Philippines. The scheme required the DOTC to hold the franchise and run the system particularly the operation and the collectiom of fares. The MRTC built the system, maintain the same as to guarantee the availability of the trains at specified headway at specified hours, as well as to procure the required spare parts, the DOTC pays MRTC monthly fees for a certain number of years.
MRTC financed the construction of the EDSA MRT III, a 16.9-kilometer modern rail system to stretch along EDSA's 10.5-meter median from North Avenue in Quezon City to Taft Avenue, Pasay City.
MRTC infused US$ 190 million (P4.49 billion) in equity into the project.
MRTC obtained financial closing, with the help of international financial consultant JP Morgan, for loans worth US$ 465 million P 12.32 billion) from the Bank of Tokyo-Mitsubishi, and Japan Export-Import Bank (JEXIM); the Postal Bank of the Czech Republic and Czech Export Credit Agency; and a group of local banks on October 17, 1997.
The loans are backed by the government through a sovereign undertaking, as agreed with the Department of Finance, to cushion risks to investors and creditors.