Tuesday, September 2, 2014

Case against MRTC to be filed within the year

THE PHILIPPINE government will file a case “within the year” against the Sobrepeña-led Metro Rail Transit Corp. (MRTC) which supposedly could have averted MRT-3 congestion and commuter agony by purchasing additional coaches more than ten years ago.

But transport officials have refused to say exactly when that case will be filed, adding that they are in the process of studying “violations” committed by the company.

“If we have enough basis, yes...[we will file the case] definitely within the year,” Department of Transportation and Communications (DoTC) Undersecretary Jose P. Lotilla said in an interview on Monday.

Mr. Lotilla made these remarks after providing testimony during a Senate hearing regarding the MRT-3, the train system on the Philippines’ busiest highway.

MRTC owns the assets of the railway line under a 25-year build-lease-transfer agreement, which requires government to pay an annual P7-billion fee in equity-rental costs for the state to run the trains.

During the Senate sub-committee hearing on MRT, Senator Francis Joseph “Chiz” G. Escudero grilled officials for their inaction in protecting the interests of the government in the MRT-3 project and allowing the private company to shortchange the government and the riding public.

Mr. Escudero said legal action should have been taken against the MRTC for having been in default in its responsibility to purchase additional train coaches for the MRT-3 to decongest the system.

To increase capacity, DoTC officials said, the MRTC should have purchased additional train coaches in 2003.

However, MRTC has failed to expand the mass transport system and even took legal action against the DoTC after it purchased 48 additional train coaches for MRT-3.

As a result, the MRT has been forced to serve 500,000 commuters daily, above its 350,000 capacity.

“The MRTC has not been doing its side of the contract for the past 11 years, why has not the government through you sued them to comply or you have made any legal move to terminate the contract instead of us paying P50 billion for their lapses and blunders?” Mr. Escudero pointed out during the hearing.

Average loops or round trips of trains per month dropped to 6,338 in July 2014 from 6,585 in 2011, MRT-3 Operations Director Renato Z. San Jose said during the hearing.

Service disruptions have increased to four on the average per month compared to only 1.83 train stoppages in 2008, Mr. San Jose said.

As of July 2014, ticket issuing machines that broke down have reached 832 from only 774 in 2011.

Service disruptions and defective equipment have prompted DoTC Secretary Joseph Emilio A. Abaya to ask for P740 million in the supplemental budget for the overhaul of the MRT-3.

Among the MRT-3 proposed rehabilitation projects are as follows:

Train General Overhauling: P1.155 billion; Ancillary Systems Upgrade: P870 million; Platform edge doors: P250 million; Signaling system upgrade: P184 million; Rain steel replacement (500 pieces): P119 million; Communication system upgrade: P110 million; Traction motors replacement: P94 million; Overhead catenary system: P89 million; and Security fence and noise barrier: P75 million.

For his part, Senator Paolo Benigno A. Aquino IV has considered the MRT-3 as “a failed public-private partnership (PPP).”

Meanwhile, two Palace officials on Monday took the challenge to ride the MRT during rush hours.

Deputy Presidential Spokesperson Abigail F. Valte took to her social networking account [Twitter] to document her experience saying that she rode the train at the North Avenue station at 8:24 a.m., after 40 minutes of waiting, and arrived at the Taft Avenue station by 9:41 a.m.

According to news reports, Ms. Valte was with Presidential Spokesperson Edwin S. Lacierda when she took the train.

Last week, Senator Grace Poe-Llamanzares also rode the MRT, in preparation for the upper chamber’s probe on the system’s deficiencies. -- Ailyn D. Galura and Chrisee Jalyssa V. Dela Paz


source:  Businessworld

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