Showing posts with label Fil-Estate group of the Sobrepena’s. MRT3 problem. Show all posts
Showing posts with label Fil-Estate group of the Sobrepena’s. MRT3 problem. Show all posts
The latest news is that when there are no bidders for MRT3 maintenance provider, the DOTC will accept direct negotiation with other company. This is another issue for Jun Abaya if his critics will pursue such decision. Likewise, I think, the DOTC Secretary is always ready to answer their doubts.
Majority of the people doubting this fare increases would be siphoned into a huge pork barrel fund to finance public works projects through such schemes as the Disbursement Acceleration Program rather than to improve in the metro rail system to make it more efficient and safer for commuters to travel between their homes and jobs?
Of all the immediate concern for MRT3 commuters is safe travel on the trains from point and point B and over the past few months, the system has drawn criticism for recurrent breakdowns due to mechanical glitches. Last August MRT-3 was forced to suspend operations due to mechanical and communication failures. The 15-year-old MRT has been plagued by technical problems and overcrowding.
The worst of these train service disruptions, due to maintenance shortfalls, took place, with the derailment of a southbound train that sent almost 40 people to hospital for injuries. Passenger safety has come off as the more critical issue plaguing the elevated railways system than the source of subsidies for the entire system. It involves life and death issues over whether the trains become the casket for some.
The Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya has more reasons why he’s still implementing the fare increase even though more and more groups and lawmakers filed petitions to stop the increase. The Supreme Court decided that TRO cannot be given because of the stature of DOTC stand to increase the same.
Various sectors intend to ask the Office of the President to review and suspend the fare increase implemented by Metro Rail Transit (MRT) and Light Rail Transit (LRT) on orders of the Department of Transportation and Communications (DOTC). Amid the outrage over the MRT-LRT fare increases, different sectors will jointly file a letter-petition before the Office of the President to ask for a review and suspension of the fare hike adjustment.
The petitioners, led by Akbayan Representatives Walden Bello and Barry Gutierrez and former senior government official Raffy Alunan, will ask President Benigno Aquino III "to exercise its 'power of control' over all executive departments, bureaus and offices by revoking" DOTC Order No. 2014-14 or the Implementation of the Uniform Distance-based Fare Scheme for three train lines.
The future of MRT-LRT train system could be improved and developed by our leaders with honest intention to serve the people. Election 2016 will be another leader chosen to manage and govern the Philippines. As such the issue still lingers which need the focus for solutions?
The one-month extended maintenance contract of Autre Potre Technique Global Inc. (APT) would likely be extended until a new maintenance contract is awarded because no bidders showed up last October 28, 2014. The DOTC announced that the rebidding will take place next month after reviewing some of the rules to be considered.
In the first place, why the interested bidders are not totally inclined to the DOTC rules? The main concerns of the bidders are on the contract’s provisions on penalties and performance inductors which could not be realistically follow by them. Bidders have the right of not showing up because of the fact it’s not at all quality-wise rules. The penalty could not sustain the revenue and responsibilities of a maintenance provider when worst-comes-to-worst.
What more can maintenance provider could suffice to gain the dilapidated situation of MRT3 train system? It’s like working with the government with no monetary value whatsoever.
The five prospective bidders were Busan Transport Corp., Mosan-Inekon Phils Ltd. Co., SMRT International Pte Ltd., Miescorrail ,Inc., and D.M. Consunji, Inc. These bidders are interested and willing to be a government partner as long as, the company’s increasing its revenues. Likewise, they are businessmen who for some reason or the other, wanted to be awarded.
Controversies in the past deformed the very essence of MRT3 maintenance image. Some political watchers questioned the delay in the awarding of the contract because of the following negative action before.
(1) The alleged $30-million extortion try of former MRT-3 General Manager Al S. Vitangcol III with Czech firm Inekon Group for the purchase of new trains.
(2) The PH Trams Corp. involved in a pending case before the Office of the Ombudsman did not buy the bid documents for the new contract. But Filipinos didn’t believe for this reason.
The government is now reviewing the terms of reference of the three-year maintenance contract due to the issues raised by prospective bidders and set to republish the new terms and conditions by next month to pave the way for the rebidding.
The rebidding could be determined by which the DOTC can instill new rules that could be applicable to all bidders. Interested bidders could imply such notion to the DOTC terms and conditions, but with the review process at hand. Each bidder wants to be awarded and the willingness to cooperate with the government through the initiative of The Department of Transportation and Communications DOTC Secretary Jun Abaya. He should focus for the upcoming rebidding next month, not for early campaigning in 2016 election of Mar Roxas.
Another reason could be that the contract price was not competitive for the bidders. The government must reconfigure the risk profile to make it more attractive to bidders.
Looking forward for the next bidding and hoping for bidders to show their worth.
The DOTC Is Very Confident For MRT3 Equity Buyout? #ViralInternetLinks
What will happen now that the DOTC Secretary is very much confident about the MRT3 buyout? That the 2015 budget will be used for this purpose?
Last, September 2014, the DOTC Secretary spread the word with finality and conviction. He answered all the queries that the Filipino people, media, and politically inclined individuals; even though train breakdowns are making negative image to the present administration.
Even MRTC’s Bob Sobrepena opened up to the media about the true status of MRT Holdings and the DOTC. Secretary Jun Abaya defended his decision-making techniques why he has done such actions.
The DOTC is acting to the best of his knowledge but in fact he’s applying the delaying tactics until the budget for 2015 will be approved. As such, he could buy the remaining bonds to its private counterpart. Likewise, the completion of MRT3 ownership is needed for upgrading the development of MRT3-EDSA. Thus, the operations and management will be only for the government. But for the government, the acquisition budget is the rightful price for the takeover, as computed through the formula provided in the 25-year build-lease-transfer (BLT) contract.
The The Department of Transportation and Communications (DOTC) Secretay Jun Abaya has higher confidence to say, “There is a fixed formula in the BLT, which also provides how to execute the buyout; so there is no room for negotiations. We are buying everything out, including the bonds and the remaining equity interest in private hands. The objective, at the end of the day, is for the government to own 100 percent of the MRT3 line.
MRTC is owned by MRT Holdings II Inc., which, in turn, is owned by MRT Holdings Inc. The government, meanwhile, holds an 80-percent economic interest in MRTC, by virtue of the bonds that the state bought from the private concessionaire.
So, the DOTC Secretary’s playing the game of chance when he totally spread the word of MRT3 buyout. Is he actually sincere of this buyout, or his intention - to buy the remaining bonds from the 2015 budget? The implementation of the equity value buyout (EVBO) of Metro Rail Transit Corp. (MRTC) could start in the first week of January, with the House of Representatives set to approve the P53.9-billion budget for the government’s takeover within the month.
But to effectiveness of the buyout, the government and MRT Corp. (MRTC), the private concessionaire of the train system, must enter into a compromise agreement first. But, through the compromise agreement with the MRTC, the DOTC should initiate such meeting to put forward of this plans. Entering into a compromise contract would effectively end the ongoing arbitration case in Singapore. The case was lodged against the government in 2008 due to its failure, as the operator of the line, to pay billions of rentals payment to the owner of the rail system.
However, the DOTC and MRTC must agree with the terms of the acquisition, which includes the price of the takeover.
How about if the MRTC will not approve for this buyout? Is there another story for the DOTC’s side?
As always, let’s wait and see.
MRT3 Senate Hearing: Will Problems Be Solved? #ViralInternetLinks
What will be the outcome of the latest senate hearing wherein the DOTC and MRTC are spreading the truth? Will it give positive result for the riding public or another battle is coming?
The senators present in the hearing know how to throw punches to the DOTC Secretary Emilio Abaya with a twists. It’s a questioning that makes Jun Abaya releases his ever-ready answers; defending his stature that always been amazingly correct. Is he telling the truth?
If The Department of Transportation and Communications (DOTC) Secretary Jun Abaya had done his part excellently last 2012, wherein he terminated the contract of Sumitomo Corporation – the maintenance provider of MRT3 train system – maybe, train breakdowns are not possible today. And because Sumitomo increased its service rates from $1.4 million a month to $2 million, prompting DOTC to terminate deal with the Japanese contractor.
Likewise, because of this contract termination and a quickie action to engage PH Trams as maintenance provider of MRT3, it makes the problem comes closer to a more train system breakdowns until now under APT Global.
At the senate hearing, MRTC’s Bob Sobrepeña pointed out those problems only arose after the DOTC terminated the contract and Sumitomo had a "single point responsibility" to design, build, and maintain the trains. The Sumitomo handled everything including parts and service. Nothing else has to be bought by the government or the private sector. He defended the company, saying Sumitomo really needed additional funds to overhaul the trains.
MRTC repeatedly proposed the procurement of new trains as early as 1999, but the government failed to act on its proposals. The last proposal to the government was in 2007, but since all of these were not acted upon, we reiterated another proposal to provide 48 cars, capacity expansion, upgrade of the MRT-3 system, in 2007. At this year, the DOTC began to question us as to why we were buying new cars. The Department of Transportation and Communications had begun to request for second-hand trains, instead of new ones. MRTC do not approve for the second hand coaches for the reason of incompatibility.
The Senate hearing was prompted by various resolutions seeking shed light on why train breakdowns are more pronounced as months passed by. The truth came out through MRTC Bob Sobrepena’s when asked about the status of MRT3. He deliberately told the senators that DOTC was violating the Build-Lease-Transfer (BLT) Agreement that the MRT Holdings filed an arbitration case in Singapore.
The latest news at present is that MRT3-EDSA will be closed for renovation of the whole train system. The works must be done daily with 100% workers participation. While engineering and maintenance people will put forward for this purpose.
The DOTC and MRTC must jointly provide help with this plan to uplift the MRT3 train system for the good of the riding public. Maybe, this is the time that the fare will increase to augment with the new development. Moreover, this can be applied, but there are still Filipinos who will not approve for this plan. So, the riding public will use buses as their temporary transportation along EDSA.
Government will find solutions for MRT3 because “for the good of the riding public,” but, if MRTC has other interest and won’t cooperate for this plan?
Let’s wait and see for the continuation of the MRT3 story.
Bob Sobrepena Message To All Filipinos: This Is The Truth #ViralInternetLinks
Now that Bob Sobrepena’s out in the open in heralding the ownership of MRT3 train system, should a reply is needed from DOTC to clear things out? Let’s wait and see for this “drama of the decade” to unfold something interesting here.
But, if the Department of Transportation and Communications (DOTC) won’t give any reply and still keeping Bob Sobrepena out of the loop? Or, still, the planned buyout of MRT3’s on-going and working it out to finalize other entities for this endeavor? Maybe, the DOTC needed an ample time to prove why they’re doing this to MRTC; because of the case in Singapore, iron-out MRT3 management and services, waiting for new coaches and gaining more than 80% of the economic interests in MRTC.
According to Bob Sobrepena, “While government bought 80% of the economic interests in MRTC, it is not the same thing as buying ownership of the train system. The original private investors, through MRT Holdings, comosed of Fil-Estate group of the Sobrepena’s, Ayala Land, Anglo Phil Holdings, Ramcar Inc, Greenfield Development Corp, Antel Land Holdings and DBH Inc. still claim to be the ones who own the train system. MRT Holdings still own shares of MRTC and even managed to sue the government over the purchase of new trains.
The media interview of Bob Sobrepena tells something positive about the future of MRT3 or just reaching out the DOTC about privatization and pushing the PPP of the government? For sure, the government’s watching this interview.
It’s a fact that Bob Sobrepena still favors the privatization because Fil-Estate group of the Sobrepena’s at the MRT Holdings. His intention to open up publicly is to reach out the government of MRT Holdings position in the MRT3 ownership. In addition, because the DOTC didn’t recognize him starting in the year 2012 or maybe because, he sued the government for not following the BLT Agreement? That’s why the string was broken between them? In the first place, both the government and the private investors are to blame for the woes faced by commuters. Over the years, the BLT contract and the privatization policy have caused unbearable burden on commuters and taxpayers. The truly sad part is that government, while seeking to “buy-out” the MRT, still seeks to privatize it eventually, bringing us back to where we started. And why the government has a plan to this? How about continuing the buyout and uplifting the MRT3 services of the taxpayers? Government must not stopped on its role of providing total service to the public, even though Filipinos continue to call on government to stamp out corruption within its operations.
For the betterment of our country, the government must have leaders to lead good example and can do their jobs excellently for the service to the people. This MRT3 problem could be avoided, even at the onset of the project, when everybody only follows the etiquette of dealing government business contracts.
I attached the media interview of Bob Sobrepena by Ms. Karen Davila of ABS-CBN for total understanding of the subject matter.
