Senate Hearing Mends a Broken Relationship of DOTC and MRTC? #ExpertWriter

Senate Hearing Mends a Broken Relationship of DOTC and MRTC? #ExpertWriter

The latest Senate hearing was prompted by various resolutions seeking shed light the different facets of MRTC and DOTC unified responsibilities through the PPP and the Build-Lease-Transfer (BLT) Agreement as the starting point of the MRT3 Train System in EDSA.

MRTC Bob Sobrepena revealed that the government was buying the bonds up to the point it acquired 80%, thus, appointing MRTC Chairman Tomas de Leon where The Department of Transportation and Communications DOTC Secretary Emilio Abaya greatly corresponded the entire transactions.

The government appointed Chairman Tomas de Leon to pacify the ownership of this MRT3 through the foreign investors who tried to control this business transaction with the knowledge of MRTC Bob Sobrepena, in line with the agreement that it will give assurance to their unified responsibilities in the operations and management of MRT3.

It’s been noted that the two entities; MRTC and DOTC are squabbling each other because of not following each other responsibilities wherein arbitration case was filed in Singapore court for this purpose. Since then, MRTC was not on the loop anymore where the DOTC acted upon the operations as per the assessment of the government. It’s been the responsibility of the DOTC to continue the MRT3 train operations and management to survive for its function in giving the riding public good services.

What they are trying to obtain such ownership and responsibilities became the nightmare of the riding public in MRT3-EDSA. Even though the DOTC are finding the solutions of the chaos brought about by their miscommunication, blaming each other is not an option. They have to compromise and work together to put forward the MRT3 O&M and the future development thereon.

As for the maintenance issue, MRTC’s Bob Sobrepeña pointed out those problems only arose after the DOTC terminated the contract with Sumitomo Corporation in 2012; that Sumitomo had a "single point responsibility" to design, build, and maintain the trains. The most important loss was of the single point responsibility. This loss has now led to the current state of finger-pointing. Sumitomo handled everything including parts and service. Nothing else has to be bought by the government or the private sector.
DOTC was violating the BLT Agreement that caused the MRT3 breakdowns and train system maintenance should be for Sumitomo Corporation that has knowledge of the design and maintain the trains.

PPP should be implemented amicably by both public and private entities. There will be some changes or alterations in the plans, but the compromising method should be applied for the betterment of the common good. If private entity moves only with the revenues to collect and not doing positive actions for the people, then, the government must initiate to iron-out the differences at hand. The Filipino people expected them to lead and give solutions for any problem that may be solved and acted upon.

The Senate hearing is an excellent way for MRTC and DOTC to sit down and come up with positive compromises in settling this dilapidated contract squabbling. It is a fact that people who manages businesses or corporations tends to battle their God-given talent to win and be successful. They don’t make amends just for the sake of the common employees.

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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.

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