DOTC Secretary Emilio Abaya, Where's The MRT3 Improvement? #ExpertWriter

For this longest running metro train maintenance squabble of MRT3 at EDSA, the DOTC Secretary Emilio Abaya was at the center of controversy which made him the most-sought after by the media and the Filipino people alike. The management and operations of MRT3 have never been good in the eyes of the riding public in the past years. Notable for this was the fare hike that made the public rumbling for his answer. He tolerated his defence with flawless lies and knowing his priorities in the future of MRT3.

In the past, the Department of Transportation and Communication’s Secretary Joseph Emilio Abaya issued Department Order No 2014-014 setting the new fares for the three mass train system in Metro Manila; MRT3, LRT-1 and LRT-2. “It’s a tough decision, but it had to be made. It’s been several years since an increase was proposed. We delayed its implementation one last time until after the Christmas season. While 2015 will see increased fares, it will also see marked improvements in our LRT and MRT services,” he said.

Moreover, the fare-hike for three mass train system, resulted different sentiments to all sectors which angered them all. These sentiments ballooned to more disappointments from train commuters who suffered most. They’re expecting for the best services because the DOTC promised for it and also the reason of fare hike. Or, this is the reason why even if fares went up, the public still does not feel any improvement but only worse cases of incidents and where’s the money?

Before, the DOTC wanted the MRT3 buyout through the 54 billion pesos of 2015 budget, but is confused on what to do about MRT3? Or worse, purposely confusing the public for some ulterior motive we can only imagine to happen?

The P54 billion DOTC wants would not buy out the original private owners as DOTC officials are publicly claiming. That large sum of money will only redeem MRT bonds now being held by GFIs. In other words, they would just move money from one government pocket to the other, something they are already doing now with the lease payments.

Secretary of DOTC Jun Abaya had so many announcements for this buyout. He even declared the greatest confidence in completing this buyout when the 2015 budget’s released. The two biggest MRT-3 investors are Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP), which have majority representation in the MRTC board, including the board chairman. He placed the value of the two banks’ exposure at $619.1 million, plus a “return” of $312 million for a total of $931.1 million. He valued “non-DBP/LBP investments” at $95.8 million. His funding request also included $143 million for taxes and $2 million for legal fees.

The Senate together with some Congressmen really stopping the MRT3 buyout of the DOTC, that they wanted MRT Holdings to have means of power over the MRT3 operations and development. The Senate is effectively aborting the planned government takeover of the breakdown-prone Metro Rail Transit (MRT3). Senators are insisting on their decision to take out the P53.9-billion appropriation in the proposed P2.606-trillion 2015 national budget for the buyout plan even if the House of Representatives would insist on retaining it.

The Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya had done the impossible while maintaining his stand for the future of MRT3-EDSA. He answered the Senate probed with flair in denying and giving reasons for his ulterior vested interests. It’s being his ways of denying the true colors of MRT3 operations and management.

The Department of Transportation and Communications (DOTC), unlike other government agencies notorious for graft and corruption, has been a “best-kept secret” as a lucrative mine or milking cow for cronies of President Pnoy. Reports coming from reliable sources claim that DOTC contracts have served as intimate deals, particularly for of certain DOTC officials.

The future of metro system as a whole is gloomy according to some analysts while its rehabilitation’s vague. The DOTC Secretary’s aiming for his buyout plan until now? Or preparing for 2016 election for Liberal Party?

Another matter for DOTC’s the failed bidding that brought doubts to all Filipinos. Is it intentional to prolong the bad-services of APT-Global maintenance provider?

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Failed Bidding For MRT3 Maintenance, A Sign of Inefficiency? #ExpertWriter

Failed Bidding For MRT3 Maintenance, A Sign of Inefficiency? #ExpertWriter

After a long squabble of MRTC and DOTC for the management and operation of MRT3-EDSA, it came to the point that the riding public was very much disgusted with the government ways of solving this issue. Even from the onset of this Build-Lease-Transfer (BLT) Agreement, failure seems to be founded in all direction, by which, series of negative images of people handling this MRT3 contracts are doomed.

The DOTC Secretary Jun Abaya still showing what seems to be his forte in dealing with this MRT3 train system problems. He dictated the mandate of being a leader, but lacks the knowledge of how to give solutions for this never-ending MRT3 saga.

The MRT Holdings and MRTC are more likely the thing of the past. Trying to help the ailing MRT3 train system by which, Robert Sobrepena opened-up his way in uniting with the government for this purpose.

The Senate hearing who conducted the findings of MRT3 story, never give the true worth of eliminating the problems and giving constructive solutions. Instead, the DOTC still, continuing its high hopes of deciphering series of their moves to put forward the MRT3 development.

Another facet of this movement is to perform the bid of companies who are interested in dealing with MRT3 maintenance; interested bidders include DMCI Holdings Incorporated, Miescorrail Incorporated of the Manila Electric Company, Busan Metro of Korea, the joint venture of Mosa - Inekon of Czech Republic, and SMRT International Pte. Ltd.

The government deferred the bids submission twice, last October 13 and 28 of 2014 in which failure showed overtime for DOTC. Interested companies for this bidding cannot comprehend the DOTC’s ruling. Some of the concerns raised by prospective bidders were the amount of penalties to be imposed by the government on the maintenance contractor for certain violations, plus the key performance indicators (KPIs) to be delivered. In fact interested businessmen knew the dilapidated situation of MRT3 platform and yet, the new rulings for bidders are far more realistic in nature.

There’s no doubt that the DOTC Secretary Jun Abaya was not able to project the outcome of this failed bidding that constitute the effectiveness of his decision-making strategy; how and when to do such positive moves while he’s busy promoting the presidential bid of Mar Roxas. Why not concentrate fully for the transportation problems especially the MRT3 and LRT which needs constant monitoring and development?

The government must review the terms of reference for the 3-year maintenance contract due to the issues raised by the prospective bidders which is set to republish the new terms and conditions. And, rebidding ensues this month as what the DOTC reported. It prefers a longer maintenance contract to replace the current maintenance provider Autre Porte Technique Global Incorporated (APT) and its local partner, Global Incorporated.

The longer this bidding process for the selected maintenance provider, the longer it takes to facilitate the movement of the MRT3 development. The The Department of Transportation and Communications DOTC Secretary should maintain the efficiency and effectiveness of his mandate to instill the train system for the good of the riding public and the Filipinos as a whole.

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MRT3 Buyout, A DOTC Strategy? #ExpertWriter

MRT3 Buyout, A DOTC Strategy? #ExpertWriter

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?

The DOTC’s only pretending to buy MRTC but they're just buying 27 billion worth of bonds to complete the 100% ownership. The government is waiting for the 2015 budget of 54 billion to process the same.

The DOTC said earlier that modernizing and upgrading MRT-3 are critical to improve the services to passengers in terms of both safety and convenience, formed a transition team composed of engineers and staff of the MRT-3 Office and the Light Rail Transit Authority (LRTA) to closely monitor and assist maintenance work on the MRT-3 system. The move is intended to give government a direct role in ensuring that safety requirements are met and protocols are properly followed on a daily basis in the interest of the riding public.

The APT Global, DOTC Maintenance Provider said, received 1.4 million USD per month supposedly with spare parts. But actually the DOTC is not providing the spare parts to us. It’s been dragging the problems to a more extreme ways until next year during the budget approval.

Major upgrades that are already underway are the addition of 48 brand new train cars and the automation of the railway ticketing system. The new train cars will increase passenger capacity by 66 percent. This means that the current three-car configuration will be made into four-car sets, and that trains will arrive at 2.5-minute intervals instead of the current three minutes. The prototype unit of the new train cars will be tested on the system by August 2015, and once approved, three to four new units will be delivered every month thereafter. While complete delivery of the 48 train cars will be only accomplished in December 2016, each monthly delivery will already afford partial relief to riders.

As such, really, the government wanted an MRT3 buyout for complete operations and management? But they cannot do that without the MRTC approvals. So, the government needs the 2015 budget to buy bonds to complete the 100% ownership of MRT3.

The Department of Transportation and Communications (DOTC) said, Metro Rail Transit Line 3 (MRT-3) Equity Value BuyOut (EVBO) may be expected to take place in the first week of January 2015.

A compromise agreement with MRTC is a must for this purpose and the process of completing the EVBO would have to be agreed on by the Office of the Solicitor General, Landbank, Development Bank of the Philippines, and the DOTC.

The The Department of Transportation and Communications DOTC Secretary is firm when he said, “As long as there is no change in policy, there is an EO (Executive Order) to execute the EVBO. The government’s long-term plan for the MRT-3 is to implement the equity value buy-out of the system’s private-sector owner Metro Rail Transit Corp. (MRTC) as provided for in the Build-Lease-Transfer (BLT) Concession Agreement. Under Executive Order No. 167 s. 2013, the DOTC and the Department of Finance (DOF) are tasked to implement the EVBO to put an end to an ongoing arbitration case in Singapore between the DOTC and the MRTC. The EVBO will terminate the Concession Agreement and transfer ownership of the MRT-3 to the government, saving billions of pesos in equity rental payments paid annually to MRTC by the government. What is critical is the 2015 budget, because the P54 billion (the amounted needed for the EVBO) is in 2015’s budget. If the budget is passed it is in there so we could expect it to roll in the first week of January 2015. The BLT provides for a formula on how to execute the EVBO so there is no room for negotiations. We are buying everything out. The bonds, the remaining equity interest in private hands. The objective at the end of the day is 100 percent government control.”

Therefore, the DOTC was rolling its strategies for MRT3 thing while aiming for the 2015 budget to completely control the bonds. They’re very positive about 54 billion to actually give them the edge over the MRT Holdings. The bonds will create them to fully utilize every transaction without the approval of MRTC, which in turn could hinder to DOTC plans.

Watch this video for complete information behind the DOTC and MRTC relationship

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MRT3 Shutdown Is An Excellent Option #ExpertWriter

MRT3 Shutdown Is An Excellent Option #ExpertWriter

First and foremost, the government’s vision and mission: to give total services and safe commuter’s system to the riding public. Being the elected leaders of our country, we need to think, cooperate and extend help to our government and to give them ways on how to address the problems nationwide especially the MRT3-EDSA. We don’t have to add negative elements to the dilapidated situation of our train system, but to think positively and spread the goodness to all. It’s within the context of our society that our Filipino image is built through characters, attitude and patriotism. How can we put forward to the future when our sentiments and loyalty always the same, same old ways in judging our leaders?

Remember, that each leader or President has its own personality, vision and mission in life especially in the political arena. We must help our leaders not to put negative aspect of their leadership into a pendulum-type of decision-making attitude.

In this case of MRT3 problems, even since the conception and until now, the story goes on and on while the riding public is not comfortable with the outcome of negotiations of The Department of Transportation and Communications DOTC to its private business partners the MRT II Holdings represented by MRTC’s Manager Robert Sobrepena. The public are in constant fear of their lives when using the train system along EDSA. Moreover, the breakdowns showed that it needed renovation for longer lifespan of the operations. Likewise, both partners, the DOTC and MRTC are not in good relationship with each other that made this chaotic situation to its extreme limits.

To ease passengers' suffering caused by recurring breakdowns of the Metro Rail Transit 3 (MRT3), its key stakeholders are in agreement over a possible temporary shutdown of the line. The private shareholder of the Metro Rail Rail Transit Corporation, the concessionaire of the MRT3, agrees, then, this is the time that the DOTC should come into the open to compromise things to be done for the good of everybody. "If safety is a clear issue, we have to shut down the rails," Transportation Secretary Joseph Emilio Abaya said in an interview with ABS-CBN on Thursday, October 9.

The MRT3 shutdown is possible for this stage because of its old-age train system and accessories. First thing the DOTC should do is to sit down with the MRTC’s Bob Sobrepena for possible compromise agreement with MRTC together with MRT II Holdings. Let the agreement starts to be positive that both parties can gain substantial business revenues. The government operates MRT3 under a build-lease-transfer (BLT Agreement) contract with Metro Rail Transit Corp (MRTC), which is majority owned by privately-held MRT II Holdings. This agreement must be followed by both parties to put forward the MRT3 operations and management to its clear destination in the modern future. But always, there’s specific time frame for every moves to be successful.

The next moves of the PPP as partnership, should appoint an expert leader to oversee the whole operations and management from planning up to the actual renovation and monitoring.

Another facet’s the riding public along EDSA through designated and scheduled buses to augment the volume of commuters each hour. This should be managed and monitored by an expert leader just for this purpose.

Likewise, the new MRT3 should be new and improved that could accommodate the volume of the riding. As much as possible, the planned MRT3 extension must be carried out after the renovation.

In addition, the DOTC and MRTC must bid for an expert maintenance and engineering providers for a longer period of time agreements. The purpose is to have a clear responsibility for their jobs as well as enthusiasm in maintaining the country train system.

The operations and management of the new renovated MRT3 should have strict but fair standard operating procedures to all staff and management. The rules and regulations of MRT3 should be implemented at all times to have high productivity for all employees.

In my observation, the MRT3 operations have lots of tellers but short in management people to monitor the daily operation. Likewise, their visibility in the front end is not known, instead, maybe, at the back office?

The DOTC and MRTC should move faster now for MRT3 renovation to avoid the same problems in the future.

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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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Senate Investigation On MRT3 Have Positive Results? #ExpertWriter

For the longest time, MRT3 has been subjected to public hearing after the derailment last August 13, 2014. Senate was looking into the constant train breakdowns which caused the riding public to question the management of MRT3. Is it the DOTC, as what the majority of Filipinos believed to be at fault? Or, the MRTC who built up this project along with DOTC?

Really, if an ordinary Filipino doesn’t know the facts behind the MRT3-EDSA train project, it’s always Secretary of DOTC Jun Abaya will be haunted by these nightmares every day. The people behind MRTC didn’t have the courage to talk openly, while the DOTC was at the forefront of controversies.

From the onset of Vitangcol case up to this Senate probe, the future of MRT3 is like a roller coaster, or, a derailed roller coaster?

It’s not easy to manage the MRT3 train system, every manager knows that, but if the management doesn’t have the expertise to run the operations, then, it’s a disaster. If the DOTC and MRTC have divided notions of what the MRT3 management’s all about, then, more disasters may follow.

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 government on the other hand was among the entity to develop with MRTC by the BLT Agreement which governs their relationship in building the said MRT3 Project. As all the terms in those prior agreements were superseded by the provisions of the BLT Agreement.

Build-Lease-Transfer Agreement is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project.

So, this BLT Agreement is under the MRTC and DOTC to provide the riding public the total services needed to operate the train system at MRT3-EDSA. Why all of the sudden, breakdowns started to appear at all angles, wherein the DOTC or MRTC cannot give solutions to these problems?

Is it because in October 2012, the maintenance contract was awarded to PH Trams and CB&T? And, in September 2013, the contract was awarded to APT & Global Inc. by the DOTC and will expire on Sept. 5, 2014, and another bid will be held?

Maybe because the latest company that the DOTC was approved didn’t have the proper expertise to run the maintenance problems at MRT3, or, the train system’s old and needed changes?

Secretary Jun Abaya had the expertise to manage the MRT3? In addition, the MRTC had the knowledge of all the DOTC’s transactions?
More questions could be asked for these people who are managing the MRT3 in which, more and more Filipinos were affected by this roller coaster decision-making. Nevertheless, it’s the DOTC that suffered more than the MRTC, in the eyes of the public.

The Senate hearing could be the wakeup call for DOTC people to prioritize the welfare of the riding public than their revenues. It’s their duty to extend their time to study, learn, and apply the proper ways to manage the train system.

Hoping for Senator Grace Poe and other Senators to build bridges with DOTC head Jun Abaya in continuing the total services to be given to Filipinos; if the plan of the government to acquire the MRT3 management. At least, if the buyout will push through, the government will give much full attention to these problems of MRT3-EDSA.

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