What You Should Know About MRTC And DOTC Controversy #ExpertWriter

What You Should Know About MRTC And DOTC Controversy #ExpertWriter

In the onset of MRT3 Train Project at EDSA with the Metro Rail Transit Corp. (MRTC) and DOTC as the prime mover and unification of the on-going work through Build-Lease-Transfer (BLT) agreement. In BLT, the MRTC has the right to upgrade the train and system because Metro Rail Transit Holdings (MRTH) are the private investors behind MRTC to build the system and the government will operate it. So, whatever proposals of MRTC in the development of the MRT3, the government must unite hand-in-hand and enable to approve the same. This was not followed because government didn't agree to the proposals of MRTC, and it means DOTC did not follow the agreement.

The government bought 80% of the economic interests of MRTC, including bonds and other instruments representing future payments. This meant that government banks are now entitled to collect 80% of the ERP’s that government itself was paying. But it is not the same thing as buying ownership of the train system.

The original private investors, through MRT Holdings, still claim to be the ones who own the train system. MRT Holdings still own shares of MRTC and even managed to sue the Philippine government over the purchase of new trains.

MRT Holdings wants to be the one to purchase new trains because it thinks that it can charge the government another 15% for the installation of new passenger capacity. Government is right in rejecting this arrangement by the private investors. However, government officials involved in the purchase of trains also want to profit from the transaction through kickbacks. Remember the incident involving the Czech ambassador of Inekon and former MRTC Manager, Al Vitangcol?

The circus of purchasing trains became open; the government grabbed the opportunity to manage the MRT3 and told Al Vitangcol to resign. His resignation brought much controversy about the maintenance company he approved for the bidding process, the CB&T and PH Trams.

Since 2012, Bob Sobrepena was not on the loop for every transaction of the government. Also Sumitomo Maintenance Company was out who mastered the train operation and its system. Thus, train breakdowns began to show resulting to chaos that the riding public and media people are questioning the integrity of MRT3 train operations.

Again, another bidding for the maintenance company that APT Global won the one-year maintenance contract worth P685 million or around P57 million a month. It was during APT’s term that the worst MRT accident took place after one of the trains overshot the terminal in Pasay Taft. The government and the private investors (MRT Holdings) are to blame for the woes faced by commuters.

The Department of Transportation and Communications (DOTC) to take over the MRT3 and fix the problems of capacity and poor maintenance or as it’s suggested by Bob Sobrepena to talk it over in a meeting between the two.

A government buyout costing billions will be all for nothing, if it’s direction is re-privatization. Again, MRT3 take-over and returning to privatization’s not an option. The government must uplift the train services benefitting the taxpayers and whole economy.