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Showing posts with label MRT3 Buyout. Show all posts
Showing posts with label MRT3 Buyout. Show all posts

Tuesday, March 31, 2015



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?



Tuesday, January 13, 2015


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. The thing that the DOTC Secretary had done was “no show” to explain on his side.

The whining of Senator Grace Poe: Wondered why the DOTC imposed the increase after its 2015 budget, including allocations for the rehabilitation of the MRT and LRT, was approved, and without giving the public due notice. She also wondered why the DOTC did not inform lawmakers about the fare increase when it asked for subsidy in the supplemental budget. That early, we could have removed this, and put it in the programs of the DSWD (Department of Social Welfare and Development) and DepEd (Department of Education),’’ she said.

More organizations were very vocal against the train fare hike like BAYAN MUNA Representative Neri Colmenares, BUHAY Representative Lito Atienza, and AKO BICOL Representative Rodel Batocabe. And even Senator Escudero observed that the government did not hold public hearings before announcing the increase. There was no public hearing whatsoever, unlike in raising jeepney, bus, or taxi rates. The DOTC simply said the increase was overdue for years, without detailing why it should be 50 percent and not just, say, 5 percent, or even as high as 500 percent, as computed by railway experts.

Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya surprised all concerned leaders, media people, news companies and citizens of the Philippines, that for the past months, he 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.

What more could we do with the Secretary right now when he’s very busy for Papal visit? Remember, he’s a transportation secretary, not only in mass train system under his concern but also the whole transportation industry in the Philippines.

The DOTC Secretary, together with the government of Pnoy Administration believed the political will to survive even when worst comes to worst for the Philippine governance?



Tuesday, November 25, 2014


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.


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