MRT-LRT Continuous Failed Bidding, Why? #ExpertWriter

The DOTC announced that there are no bidders for MRT3 maintenance provider last 20th of January 2015, the second bidding. The same thing had happened on Oct. 28, 2014, the first bidding. The LRT-1 bidding failed earlier, Oct. 24. So did the one for LRT-2 only last Dec. 23.

The DOTC will accept direct negotiation with other company instead? Or, with the failed MRT-3 bidding, DOTC Secretary Jun Abaya indefinitely can retain the joint venture of Global-APT (Global Epcom and Autre Porte Technique) - the present contractors will be extended month-to-month. That means continued sloppy upkeep of MRT-3, and spare parts shortage at LRT-1 and -2. Why?

It would be month-to-month for P57 million, for as long as he wishes? This is another issue for Jun Abaya if his critics will pursue such decision. Likewise, I think, the Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya is always ready to answer their doubts because he strategized every step in building the planned moves.

Of all the immediate concern for MRT3 commuters is safe travel on the trains from point and point B and over the past few months, the system has drawn criticism for recurrent breakdowns due to mechanical glitches. Last August MRT-3 was forced to suspend operations due to mechanical and communication failures. The 15-year-old MRT has been plagued by technical problems and overcrowding.

The worst of these train service disruptions, due to maintenance shortfalls, took place, with the derailment of a southbound train that sent almost 40 people to hospital for injuries. Passenger safety has come off as the more critical issue plaguing the elevated railways system than the source of subsidies for the entire system. It involves life and death while continuing its operation.

While the government unilaterally raised metro train fares by 50-80 percent, with no upgrade in service or facilities. Majority of the people doubting this fare increases would be siphoned into a huge pork barrel fund to finance public works projects through such schemes as the Disbursement Acceleration Program rather than to improve in the metro rail system to make it more efficient and safer for commuters to travel between their homes and jobs?

Some bidders complained about the strict requirements of DOTC which is impossible to attain. Others find the bidding as a ploy of DOTC Secretary so that no bidders will truthfully abide by it that Global-APT (Global Epcom and Autre Porte Technique) continues as the maintenance provider. What really amazed them is that, the people behind this APT-Global are members of Liberal Party.

Then, suddenly, he implemented the treacherous MRT-LRT fare increase just to justify or hastens the move for government side. Waves of disappointments were felt by the train commuters and supporters who demanded for development first before increasing the fare; supposedly for DOTC Secretary to propel the entire financial status of this endeavor in eliminating such drastic move. Devising the amount to be used in 2015 budget’s being evaluated and studied the projected subsidies.

Others doubted his planned moves as the way to expedite an amount to be used this coming 2016 election?

Majority of Filipinos are hoping for them to show that the government decisions now still can give the positive results for their lives.

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DOTC Secretary Jun Abaya's Department Order Has An Edge To Complete The MRT3 Buyout? #ExpertWriter

It has been noted to all concerned leaders, media people, news companies and citizens of the Philippines, that for the past months, Secretary Emilio Abaya was very much alive with his planned strategies on how to tackled MRT3 problems and continued to move forward with his leadership for the good of the commuters. While at the same time, never had a wink of giving MRT Holdings its proposition for business unification. Even the Senate cannot twisted his firmed ways to solve this gigantic problem of the MRT3 drama that buyout was the only option.

Is he on track with his move? The Pnoy Administration’s truly involved and believed the same way as he did. Moreover, he has the support for this MRT3 endeavor all along.

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. The Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya has decided to adopt a uniform distance-based fare scheme for MRT-3 as well as LRT-1 and LRT-2 pursuant to the Medium-Term Philippine Development Plan. It is envisioned that this fare scheme will result in an equitable distribution of government funds currently dedicated to subsidizing the operations of the above rail lines in Metro Manila to much-needed development projects and relief operations in other parts of Luzon, the Visayas and Mindanao.”

DOTC Secretary Jun Abaya’s Department Order made a gigantic response from every sector of the Philippine society. It created much disappointment to some opposition leaders, train commuters, some Senators and even ordinary Filipino citizens. It has its own way of surprising concerned people while maintaining his stand about the issue. He downplayed the MTR audit team’s warning, stressing that government is addressing the issue on worn out rail tracks and scarcity of spare rails, “We’re not just sitting down on the issue of rails, we are addressing it. We have procured rails, and in fact we are doing more than what MTR is suggesting by replacing 6 kilometers of rails instead of the 1.2 kilometers they suggested.” The DOTC has allotted P81.5 million to procure 608 pieces of new 12-meter steel rails for MRT 3. Pending the awarding of the contract and the supply of the new rails, the MRT 3 is borrowing spare rails from the LRT 2 due to its depleted stocks of spare rails. Aside from the rail replacement, the government is also procuring a new maintenance contractor for the MRT 3 line. The DOTC has recently increased the approved budget for the three-year MRT 3 maintenance contract to P2.4 billion from P2.2 billion allocated during the failed first bidding. The new maintenance provider will be the one to replace worn out rails with new ones.

What could be the utmost solution for MRT3 train system; management and operations, when the DOTC Secretary himself moved to increase fares and showed that the government can handle, maintain, monitor and develop the MRT3 –EDSA?

Likewise, the government should create more trusted actions to alleviate the disappointment at present before implementing the fare increase next month. It’s more than doing things right than to do things to iron-out past mistakes.

Therefore, an added action plan and strategies to be developed and maintained by the DOTC in instilling the public trust. It’s not only the leadership, not only the MRT3, but all mass transportation of the country.

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MRT3 Buyout By The Government Really True? #ExpertWriter

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.

ABOUT THE AUTHOR: A freelance writer who meticulously structured and maintained blogs just for you:A LIFE SO FAR AWAYand my other blog:OFW: THIS IS MY LIFE AND STORY Thank you for your valuable time. Follow my business & writings and you'll find what life's meant to be.

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