Tuesday, August 5, 2014

Government Buying Out MRT 3

And so another saga in the MRT scene, but this time its about the government trying to pull out almost all shares of MRT3. What does this mean for us the common Filipino?

There are yet again several controversies surrounding this plan of a buyout. People have wondered why all of the sudden Aquino wants to push through with this expensive buyout which will cost us P56 Billion pesos to complete. Aquino stated that it was to end the huge rental fees the government pays for private sector who owns the MRT3. It was estimated that this buyout will be finalized this end of quarter 3 2014. 

So lets back track a bit, why is there an issue with MRTC in the first place? Actually currently there are 2 arbitration cases against the Philippine government filled by MRTC. First it was on January 2009 due to failure to pay equity rentals in a timely manner. Second was this 2013 wherein DOTC awarded a 3.8 Billion peso contract to CNR Dalian Locomotive & Rolling Stock Co. of China for the supply of 48 brand new light rail vehicles for MRT3. All of which were in violation of the 1999 BLT agreement. This 1999 BLT agreement allows MRTC to purchase additional train coaches, wherein for the past years MRTC proposed 4 times already starting 2010. All of these proposals will add more coaches to the MRT section without additional cost (or taxpayer's money), but DOTC declines all four instances. BUT WHY? And here DOTC comes in and awarding the expansion project to another provider that does not even consult with MRTC. How crazy is this.

So now, the government wants to buy out ownership of MRT3 to take control of its operations. Since their new alliance with China will bring about new trains starting the first half of 2015. Honestly, I always thought the government should own all public transportation vehicles so that they can control better the traffic and secure everyone's safety. But owning a train 'company' is different from what I initially thought. Yes, I would love the government to streamline/own/standardlize jeepneys, buses, and even tricycles since they are all CRAZY. They drive like mad everyday just to get "salary". But owning the train system is quite shady for me, it can either be good since the government can now easily upgrade/downgrade processes.... but at the same time, given the history... there is a big chance that our outdated government will perform lesser than a private sector. 

In any case, I pray for this country. Be the lesser evil win.


Leira Pagaspas said...

I don't think that their timeline is realistic. Their goal is last quarter of this year.

sir rob said...

It means, another long term burden for politic minded individuals who thinks a little from the taxpayers when election is too far away.

Ay Lin said...

Wow, another source of income for the corrupt government!