The MRT3 - DOTC Wheel of Fortune Game? #ExpertWriter

The MRT3 - DOTC Wheel of Fortune Game? #ExpertWriter

For Department of Transportation and Communications (DOTC) Secretary Jun Abaya, the MRT3 thing is like building a castle in the air. With so much failed contracts and bidding that nobody could decipher what he’s up to? Even more Senate hearing for this case, it will never be resolved. For one, Jun Abaya has the sole responsibility in deciding the future of MRT3 because his projection for rehabilitation and development requires guts to delay such services to the commuters. And why he’s bound to do these instead?

For the last hearing, he reasoned out that improvements in Metro Rail Transit Line 3 (MRT3) services will be felt by the first quarter of 2016, or by March at the latest. There will be improvement in service come first quarter. Remember that he always done this reasoning when questioned about the MRT3 subject matter? His alibis are becoming trash for the sake of dealing with the people. He ordered the “emergency procurement” wherein his secret negotiation for 4.5B rehabilitation project of MRT3. The granting for this purpose caused other sectors to doubt his moves of such huge amount?

Senator Grace Poe stated that deliverables under the 2015 budget should have been implemented including the improvement of MRT’s facilities such as elevators and escalators, which should have been completed by the third quarter of 2015.

The breakdowns of MRT3 are showing for the rest of its operation daily. The maintenance providers hired by the DOTC could not give much positive results when it comes to maintaining the core problems of the train system. It has been observed by the media, train commuters, political groups and the Filipino people as a whole.

Likewise, according to Jun Abaya’s schedule on rehabilitation, the same is true when he projected the movement of MRT3 development. Commuters need an immediate discourse of this problem knowing the availability of the fund. What really bothers them, was the way it could be done by Jun Abaya’s series of failed bidding.

Even President Aquino himself could not let go the DOTC Secretary now. He needed him up to the end of his term for sure. Some leftist groups wanted Jun Abaya to resign on his position because of incompetency. The delaying tactics done by him is just a show for he alone knows the resulting end.

At present, this will prolong him to handle the MRT3 hanky-panky as long as the opposition has the edge to combat the Pnoy Administration and Liberal Party for this matter. They used this as weapon in “hurling mud” to the Liberal Party up to election time.

You know that Jun Abaya is the President of the Liberal Party and one the untouchable of the President according to the opposition political party and other partylist leaders; besides majority of them doubting the maintenance contracts deals done by the DOTC Secretary Abaya.
The wheel of fortune is constantly rolling for this case but nobody ever had a chance to get the closer look what’s inside the Pandora’s Box. Maybe someday, somehow, somewhere….over the rainbow, they can find the answer during Election 2016.

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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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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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Two Dragons Are Fighting For MRT3-EDSA? But Why And Who Is The Winner? #ExpertWriter

Two Dragons Are Fighting For MRT3-EDSA? But Why And Who Is The Winner? #ExpertWriter


As the story of the Department of Transportation and Communications (DOTC) and Metro Rail Transit Corp. (MRTC) continues, and while other problems evolved continuously, still, the train system continued its never-ending breakdowns. Even the Inspection Audit of Train experts from Hongkong had nothing to give much positive solutions from the two “Dragons” fighting each other.

How could the train operation be properly managed when DOTC and MRTC were throwing “Dragon’s Fire” with each other? The riding public, employees, media and ordinary people in the Philippines and abroad cannot fathom what’s going on behind the deal of this MRT3-EDSA Project.

“The government is looking at striking a compromise with MRTC within the third quarter to allow the government to buy back full ownership of the 17-kilometer mass transit system along EDSA. The agreement involves the buyout of MRTC’s shares in MRT3. The government will allot P55 billion to P56 billion to buy out the private owners of the Metro Rail Transit Line 3 (MRT 3),” Transportation Secretary Joseph Emilio Abaya said.

Well, of course, because of the complex story behind this project, the government wanted a buyout to elevate the train system operations and maintenance, to augment with the devastated management image through the DOTC.

Another problem the government’s facing: MRTC filed an arbitration case in Singapore against the Philippine government in January 2009 due to failure to pay equity rentals in a timely manner, while another case was filed against the government recently over the decision of the DOTC to award a P3.8 billion contract to CNR Dalian Locomotive & Rolling Stock Co. of China for the supply of 48 brand new light rail vehicles for MRT3.

The government requires the arbitration blessing from Singapore Court, and the DOTC is confident in the completion of the planned buyout as the government has enough seats in the board of MRTC. Until when, this blessing be given?

Since 2009, the DOTC-MRTC relationship was already becoming damaged and MRTC filed an arbitration suit against the Philippines in Singapore because of the delayed rental payments.

The government said it has paid MRTC P35.2 billion since 2000. Throughout that time, MRTC did not acquire new coaches or upgraded key systems of the line, like the crucial signaling and ticketing systems because, it said, the government did not pay its rent promptly.

The following year, President Aquino issued orders to expand the MRT-3 capacity by buying new coaches but the build-lease-transfer agreement gives the owners, MRTC, the right of first refusal.

The government must remember always that this MRT3 Project were agreed upon through Build-Lease-Transfer (BLT) Agreement in 1997 that didn’t allowed MRTC to do its job of choosing the M&O contractor for this EDSA rail line.

According to Wikipedia, The BLT Agreement was signed by DOTC and Metro Rail on August 8, 1997 and amended on October 16, 1997; it constitutes a restatement of similar agreements dating back to the first such contract, which was signed on November 7, 1991. That agreement was restated on April 22, 1992, and the restated agreement was supplemented on May 6, 1993, and amended on July 28, 1994 and May 1996. Another restatement was signed on October 3, 1996. All the terms in those prior agreements were superseded by the provisions of the BLT Agreement.

The BLT Agreement governs the relationship between Metro Rail and DOTC during the Project’s two major phases, construction and revenue service. During the construction phase, Metro Rail was obliged to construct the Project (Phase 1) and to complete that construction by a certain date (the “Date Certain”). The construction was to be accomplished in accordance with the specifications and drawings approved by the DOTC and the completed system capable of achieving certain capacity requirements.

Metro Rail was also obligated to provide all equipment that was to be used in the system, including the rail vehicles. The DOTC’s obligations during the construction phase included granting Metro Rail access to the Project site (including relocating squatters and other persons from the Depot area) and ensuring that certain work to be performed by the Department of Public Works and Highways (“DPWH”) was completed properly and on time. In addition, the DOTC accepted the responsibility for certain events that could delay completion of the system. Should such events occur, DOTC would be responsible for paying the costs of the event and the delay it causes, and the date by which Metro Rail is obliged to complete construction would be adjusted.

After completion, Metro Rail was obligated to lease the system to DOTC, who would operate the system, with Metro Rail providing the maintenance. DOTC was required to make payments of Rental Fees to Metro Rail, and these were broken down into several different portions. One significant part was intended to repay the loans taken out to finance the Project (“Debt Rental Fees”).

Robert John Sobrepena, was Metro Rail's Chairman and CEO, overseeing all aspects of the Project from Financing to Construction and turn over. Laurence Weldon, President and Chief Operating Officer, oversaw all aspects of construction of the Project. Mr. Weldon was previously connected as project manager of the Los Angeles “Blue Line” Rapid Transit Project before July 1995. In Manila he was supported by Carlos 'Karl' Quirino, Chief Financial Officer, Robert Ball, Vice-President of Technical Services, William Lathrop & Walter Mergelsberg of the Project Management Team and Harry Redstone and their teams for the engineering aspects of the Project.

Remember Robert John Sobrepena, the Chief Executive of Camp John Hay's private operator of CJHDevCo in Baguio, wherein the state-run Bases Conversion and Development Authority (BCDA) filed malversation charges against him?

Really, the knots between these contracts will be of the same disgusted attitude towards him. He fought the “Dragons” with all his might, but he cannot survive for long because of his captivity in a “Dragon’s Lair.” The fighting continued its negative setback for DOTC through the Aquino Administration which also damaged the MRTC image.

The Filipino people wanted a properly managed train system in MRT3-EDSA, but how, when the two Dragons were fighting each other?

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