Showing posts with label MRTC. Show all posts
Showing posts with label MRTC. Show all posts
Government Really Wants to Buy the MRT3 Completely? #ViralInternetLinks
What transpired in the past for this MRT3 buyout really gave much headache to our leaders and all the Filipinos alike. Even the businessmen, workers and media people were squabbling for money that was intended for this transaction.
The 2015 budget that’s been allocated cannot conform to the whole and complete MRT3 buyout of the government, in which, the taxpayer’s money could be extended for it’s not enough even though the government’s trying its best to push through this buyout.
Transportation Secretary Joseph Abaya said that a so-called equity value buyout of the MRT-3’s operator, Metro Rail Transit Corp. (MRTC), was progressing despite thorny legal issues, including the latter’s suit filed in an arbitration court in Singapore. The buyout was ordered by President Aquino last year to end the huge rental fees guaranteed to its private operator.
It’s really known that this buyout needs the approval of MRT Holdings for any transaction by the government. But this talk never happened as what Bob Sobrepena’s expected. The government allotted P56 billion for the EVBO following Executive Order 126 issued by President Benigno Aquino III in February 2013. (An EVBO is a right given to MRTC in case the government is unable to fulfill its obligations.) But private shareholders of the MRTC insist that the value falls short from its total equity value, and pointed out that the P56 billion only accounts for the bonds controlled by the two state-run banks.
The Senate approved such fund through adding the 2015 budget for maintenance and development of MRT3 system, but not for the buyout. The DOTC wanted for the buyout to be completed, in which, they needed another 100 billion pesos for the bonds. 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 Department of Transportation Commission (DOTC) Secretary Joseph Abayashould 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.
The reason why the government really wants to buy the MRT3 completely is to have a controlled train system for the riding public. The management, operations and development of MRT3 will have a continuous effect to the government revenues than giving it to private institution. But the fact remains, the government couldn’t complete the whole MRT3 buyout because of funding. That’s why they practiced the delaying tactics for the last 6 months until the 2015 budget will save them. The projected budget came short that they needed money for complete buyout. Likewise, the government has not even consulted with Metro Rail Transit Holdings and formally to talk about the buyout.
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.
Blaming each other is not an option for DOTC and MRTC in giving services to the public through the MRT3 train system along EDSA. Likewise, corruption of public officials is not the primary mission in leading the Philippine government.
Majority of Filipinos knows the strategies of some politicians who only valued their vested interest while doing their job in the government. They molded their lives through dealing negatively because of the huge amount of money involves.
There’s a saying that, “Chaos gives bad people to live invisibly or saintly.” For sure, they wanted that way to juggle their ambitions and personalities direct to Hell.
Let’s take a look the case of never-ending chaos brought about by this MRT3 Project along EDSA. The PPP movement is not working here wherein squabbling over the Maintenance and Operation didn’t give positive result to the riding public. It’s really a problematic notion that privatization cannot pursue the course because of public intervention. The MRT3 was originally tasked to MRTC, of course the maintenance of MRT3; the DOTC, over the objections of MRTC, took over the maintenance of MRT3 by selecting, appointing and contracting with its preferred maintenance contractor/s, PH Trams-CB&T and Global-APT, from 2012 onwards.
A recent statement of the MRTC Board indicate that DOTC officials have been lying through their teeth in unduly blaming its private partner for this train system’s fiasco and hiding the fact that this department took over the MRT3 maintenance in 2012. MRTC has written Department of Transportation and Communications (DOTC) numerous letters about the resulting problems in the operations of MRT3 and demanded an explanation from DOTC. The DOTC has not answered any of those letters. But wasn’t it DOTC which took over the maintenance work in 2012 after dumping longtime contractor Sumitomo and “requested” MRTC to surrender its job of selecting the O&M service provider, after which DOTC awarded an interim contract to an unqualified and undercapitalized company through a negotiated arrangement instead of the mandatory public bidding?
DOTC has totally shut out MRTC from the business of selecting and overseeing the work of MRT3’s O&M operators since 2012, when it surprisingly dumped the train system’s longtime maintenance provider TESP-P/Sumitomo Corp. of Japan in favor of PH Trams-CB&T and, later, APT Global. MRT3’s dismal service started only when PH Trams-CB&T and then APT Global took over from Sumitomo as O&M operators.
MRTC and its mother firm MRT Holdings (MRTH) have actually submitted five capacity-expansion proposals to acquire additional LRVs from the time the DOTC and MRTC sealed their build-lease-transfer agreement in 1999.
DOTC has been accused of violating the original 1999 BLT a number of times. One instance was when it chose PH Trams-CB&T and APT Global as O&M operators along with Dalian Locomotive as LRV supplier, all without prior review and consent from MRTC as provided in the accord. The second one involved non-payment of economic rental payments (ERPs) plus staffing and administrative costs to MRTC, as well as real property taxes (RPT) to host-local government units (LGUs).
MRTC has repeatedly informed the DOTC of its readiness and willingness to purchase additional trains, has told the DOTC of its readiness and willingness to procure the O&M contract after the 2012 expiration of Sumitomo’s contract, has cited the need for a technical audit by an independent third party to assess the safety of the train system; has suggested improvements in the Terms of Reference (TOR) of the O&M contracts awarded to the interim maintenance providers to safeguard the government and riders against foul-ups; and has alerted the DOTC to problems cited by then-outgoing contractor Sumitomo, such as passenger overload and the shortage of spare parts for the train signaling and automated ticket-collection systems, to no avail.
Now we know why DOTC is only now thinking of suing MRTC after years of neglect they are blaming the owner for. It will backfire on them and the true incompetent will be exposed. And here they come claiming they will rescue us by taking over the MRT3. It's all posturing because while they have the money to buy out the government shares that will leave nothing left for private shareholders.
And DOTC executives have to think carefully their plan to sue MRTC. After all, seven of the 11 member members of the board are government officials which means, that government is running the show. Most of the board directors come from Development Bank of the Philippines and the Land Bank of the Philippines, with an LBP director as chairman-president, because these state-run banks own a combined 80-percent economic interest in MRTC.
We should always defend people who manage the Philippine resources and extend total services for the good of all Filipinos. The political arena is not a milking cow for politicians. We should erase the bad elements in the political system and penalize people who are not serving our country. They only survive in getting wealth through government contracts.
We cannot achieve development until these dirty politicians and corruptions are removed from our political system. The past gave much misery to Filipino people; it’s our turn to straighten up for good of the majority.
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.
Public Hearing on MRT Incident And Continuous Train System Breakdowns #ViralInternetLinks
After the Senate hearing last September 1, 2014 was about the derailment of train coaches last August 13, 2014, and, was looking into the constant train breakdowns which caused the riding public to question the management of MRT3. Being said, that the probe makes the government officials to extend their strategy by way of interpolating the suggestions done by the Senators.
Some of the concerned political people are questioning the integrity of the present maintenance company that won the bidding through the effort of former MRT3 Manager Al Vitangcol and Wilson T. de Vera. The said contract was allegedly and totally manipulated even the company had not enough funds in maintaining this kind of train system at MRT3.
The DOTC entered into a negotiated procurement to replace Sumitomo. It hired the Philippine Trams Rail Management and Services Corp. (PH Trams) and Comm Builders and Technology Inc. (CB&T) joint venture as interim maintenance provider for a monthly service fee of $1.15 million. The existing maintenance provider Global Autre Porte Technique won the bidding for the one-year maintenance contract worth P712.7-million which raised the eyebrows of politically inclined groups.
The MRTC, as owner of the MRT3 system, should be the one to hire the maintenance service provider and government’s role under the build-lease-transfer agreement is to pay for the service. The MRTC hired Japanese firm Sumitomo Corp. to maintain the MRT3 system for its first 10 years and its contract was extended for two years. Sumitomo Corp., which built the MRT3 system, reportedly charged the government $2.1 million on a monthly basis.
And, MRTC as owners, the trains should be maintained properly. If they are maintained properly, they will run properly. When it was Sumitomo that maintained it for 12 years, it was already servicing 500,000 commuters a day . The waiting time was fine and the lines are short. But at present, commuters did sacrifice for their way of life through the unwanted decision-making of DOTC Secretary Emilio Abaya which for sure, doesn’t have enough expertise to manage the MRT3-EDSA .
The DOTC and MRTC were moving in separate directions which resulted to damage the image of the whole management. Because of its negative image done by MRT3 Manager Al Vitangcol and Wilson T. de Vera, the present situation became worst and continuously damages the whole operation. At that time, there’s a scarcity of “technically competent and financially capable” contractors since the government took on the role of bidding out the maintenance contract in 2012, in which, the resulted outcome has been appearing all the time.
Because of the Senate hearing feedbacks to DOTC Secretary, government’s eventual plan of privatizing the operation and maintenance of the MRT3 system is preventing the DOTC from bidding out a longer maintenance contract.
Their purpose could be shown with all their actions to carry out the full services intended for the riding public and to erase the negative aspects of their management at MRT3.
Another bid must be carried out by the DOTC, but other government officials were against by their action. Instead they wanted the MRTC to do the contract because of the BLT Agreement.
What will happen for the next chapter of the MRT3 story? Is there another hearing for former MRT3 Manager Al Vitangcol and Wilson T. de Vera? Let’s wait and see.
DOTC Or MRTC, Who's To Blame For The MRT3 Train System Breakdowns? #ViralInternetLinks
The breakdown problems of MRT3 train system continued to appear in every facets of its operation along EDSA. Last Saturday, August 23, due to a breakdown of its radio communications system and compelled to suspend the operations. The technical issue comes over a week after the derailing of an MRT3 train reportedly caused by human error, and is the latest in a long line of problems hounding the train system operations.
These breakdowns damaged the image of DOTC as compared to MRTC according to the perception of some Filipinos who didn’t even know what was happening behind the management of MRT3.
The riding public always on the lookout asking for the total service coming from MRT3 management in which, the MRTC should do their share of maintaining the train system. Besides, the government, through the DOTC appeared to tackle the problems in the eyes of the media and all the Filipino people.
For the time being, while the DOTC’s planning for the buyout, and making every move to compromise with its decision, the government must organize an agreement with MRTC for its proper renewal of terms or other ways to iron-out problems.
According to the history of this project, the Philippines subsidiary of Metro Rail, Metro Rail Transit Corporation (MRTC), was formed for the purpose of designing, constructing, testing, commissioning, and maintaining the EDSA Rail Transit III, Phase-1 system. An Accession Undertaking and an Assignment and Assumption Agreement was executed which gave MRTC all rights and obligations to the Project agreements during the debt repayment period and establish MRTC as the Project borrowing entity.
The Build-Lease-Transfer (BLT) Agreement which governs the relationship of Department of Transportation and Commission (DOTC) and Metro Rail Transit Corporation (MRTC) in building the said MRT3 Project. As all the terms in those prior agreements were superseded by the provisions of the BLT Agreement.
Their relationship was damaged when MRTC filed an arbitration case against the government in Singapore court because of non-payment of rentals, in which, according to MRTC, DOTC’s obligation to pay the rent in regards to BLT Agreement.
The government said, it has paid MRTC P35.2 billion since 2000. And since that time, MRTC did not provide new coaches or upgraded some train systems because the government through DOTC did not pay its rent promptly while the maintenance of the train system was in the verged of collapse up to this day.
The DOTC and MRTC couldn’t do much for the time being but to compromise their position in binding agreement to carry out their obligations to give excellent service to the riding public. Their relationship’s not a hindrance in developing the train system for the good of everyone.
The MRT3-EDSA needs maintenance experts and trained employees in forwarding the train operations. This case does not need total management of the government, but a joint relationship is needed between MRTC and DOTC. They will unite their expertise in prolonging the mission of this project to the Filipino people.
While the government plans to acquire the management of the MRT3 and compromising other facets of the agreement with MRTC, the government awarded a P3.8-billion ($86.7 million) contract to Chinese company CNR Dalian Locomotive & Rolling Stock Company of China to supply of 48 new light rail vehicles for MRT 3 in which MRTC filed another case for not letting the MRTC to deal with contracts. The DOTC has no right to acquire railway facilities for MRT3 alone, but it’s the obligation of MRTC to deal with, according to BLT Agreement.
So, the government must hasten its move to deal with different facets of the problems with regards to MRT3 operations, deals, contracts, agreements, financial, maintenance and management.
