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.

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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 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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