MRT3-EDSA has been the center of negative whatnots in the past. Lots of controversies were building up while the government, through the Department of Transportation Commission (DOTC) Secretary Joseph Abaya was spreading the 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.
Is the government buying out MRT 3? But what will happen now that the Philippine government wants to take over MRT 3?
The department earlier awarded a contract to China’s CNR Dalian Locomotive and Rolling Stock Co. Ltd. to supply 48 new train cars for MRT-3. This was in response to heavy congestion at the railway line, which was operating well above its intended capacity of 350,000 people a day. The new trains are expected to be delivered in batches starting the first half of 2015, the department announced in an earlier statement.
The Government could have avoided all the current and potential legal hassles in this MRT3 capacity expansion project had DOTC only abided by the 1999 BLT agreement and allowed MRTC to do its job of choosing the M&O contractor for this EDSA rail line.
The MRT3 is the lifeblood of every commuter along EDSA who sees it as their means of transportation for their daily existence. Their expectations for services render must be maximized for the common good. The Filipino people are the users of this train system who wanted comfortable and efficient operations and management. Upgrading the MRT3 train system for development is clearly visible for government to continue the hassles of the past.
The buyout for MRT3 evolved from DOTC Secretary Jun Abaya for the last months when the dilapidated relation of the government to MRT Holdings and MRTC are vanished despite the fact that MRTC’s Bob Sobrepena’s interview with a famous media network. Senate hearing ensued and both parties lay down their cards for the Senate and the Filipino people to clearly understand the background of the case; likewise, the train system breakdowns and the drama of the maintenance provider.
MRT3 buyout by the government seems to be the option at hand ever since? 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 which could not satisfy the whole buyout. It will settle the bonds first costing 100 Billion pesos before the government can complete the buyout.
The budget for the year 2015 cannot suffice for the MRT3 buyout and the people’s money are really the main point in completing this buyout? And, why the DOTC wanted so much for the MRT3 buyout?
We can give so much opinion for this purpose but the fact remains unclear all the time. It’s for Filipino people and Pnoy Administration to think wisely if the buyout could give positive result in the long run.
