DOTC And MRTC Must Join Hands In Pursuing The MRT3 Management #PublishingArticles

DOTC And MRTC Must Join Hands In Pursuing The MRT3 Management #PublishingArticles

Ever since the inception of the MRT3 project that comprised the MRTC and DOTC, it occurred that both entities never have the strong bond to continue their partnership in giving much attention to the widening problems of the train system breakdowns at MRT3-EDSA at present.

Their beginnings were not formed as to carry out the mission of the intended goals as to why this MRT3 Project will be built accordingly. The Filipinos expected much more than just transportation but also, its maintenance and proper management.

According to the history of this project, the Philippines subsidiary of Metro Rail, Metro Rail Transit Corporation (MRTC), was formed for the purpose of designing, constructing, testing, commissioning, and maintaining the EDSA Rail Transit III, Phase-1 system. An Accession Undertaking and an Assignment and Assumption Agreement was executed which gave MRTC all rights and obligations to the Project agreements during the debt repayment period and establish MRTC as the Project borrowing entity.

The government on the other hand was among the entity to develop with MRTC by the BLT Agreement which governs their relationship in building the said MRT3 Project. As all the terms in those prior agreements were superseded by the provisions of the BLT Agreement.

Build-Lease-Transfer Agreement is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project. Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The rate of increase is often tied to a combination of internal and external variables, allowing the proponent to reach a satisfactory internal rate of return for its investment.
The government said it has paid MRTC P35.2 billion since 2000. And since that time, MRTC did not provide new coaches or upgraded some train systems because the government through DOTC did not pay its rent promptly.

MRTC filed an arbitration suit against the Philippine government in Singapore for delayed rental payments.

The series of undecided terms for the MRTC and DOTC resulted from the grievances from which both entities couldn’t move as to the next development phase of the train system. It’s not clear to whether MRTC will move forward in uplifting the train management where the government wanted a buyout for this MRT3 management.

In the first place, the BLT Agreement has the reason why MRTC and DOTC joined hands to process this project. But since, the government at present planning to compromise with MRTC, they have to work it out for the good of the riding public.

In fact, the government has no right to acquire railway facilities for MRT3 because of this BLT Agreement that binds between them. Both of them must have the eagerness to talk with its terms and conditions, learn on how to maintain and manage the train system, and by no means, increase the fare if necessary and acquire new coaches for the benefit of all.

Planning is the key for every endeavor they may take in the future, and the uplifting of service must observed all the time, because, this MRT3 project cannot move forward to its success. Nevertheless, I can say that this MRT3 project didn’t plan thoroughly to augment the volume of riders per day.

Another case was filed against the government for awarding a P3.8-billion ($86.7 million) contract to Chinese company CNR Dalian Locomotive & Rolling Stock Company of China to supply of 48 new light rail vehicles for MRT 3. Because of these bad moves from the government, MRTC must be jointly recognizes in conjunction with its dealings.

For the time being, while the DOTC’s planning for the buyout, and making every move to compromise with its decision, the government must organize an agreement with MRTC for its proper renewal of terms or other ways to iron-out problems.

The government must remember always that MRTC will be there as a partner of this MRT3 Project and have the right to join hands in pursuing this cause.