There were some sectors of the MRT3 dealings which should be analyzed and give proper disbursement when it comes to the term, “savings.” The Senate studied the 2015 budget and the DOTC wants the 54 billion pesos budget for completing the MRT3 buyout.
The Senate through Chiz Escudero was making a wave by questioning the MRT3 complete buyout of the DOTC. More sectors are claiming the buyout as a ploy of the government for other ulterior motives? But, as what the DOTC’s planning to the MRT3 development, the 2015 budget could help, according to Secretary Jun Abaya.
Why the Senate is totally complacent with Bob Sobrepena theories and calculations; that the 54 billion pesos for the buyout is to assign to the two banks, the government would need $1.172 billion (equivalent to P53.9 billion) to pay off MRT-3 investors. 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.
Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya 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. Abaya’s 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. Why this private investors still wanting to “swim in the pool of uncertainties” and trying to disrupt the buyout?
The Senate is effectively aborting the planned government takeover of the breakdown-prone Metro Rail Transit (MRT) 3 next year. 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.
Some of the reasons why the Senate did not approved for the buyout.
(1) Senators do not believe that the buyout plan, if it pushes through, would solve the problems plaguing the MRT-3.
(2) The P53.9 billion would just go to two state banks holding 80 percent of bonds sold by MRT Corp. (MRTC), the owner of the EDSA rail line, and none to its maintenance and private investors.
(3) A buyout would also not stop lawsuits against the government.
(4) The net effect of the Senate decision to deny funding for the buyout plan is that such takeover would not push through. The plan will be derailed because the government will not have the necessary funds for it.
(5) The P54 billion be appropriated to jumpstart the Metro Manila subway project as recommended by the Japan International Cooperation Agency.
More than ever, the senators could not just block the government’s solution to MRT-3 woes without offering alternatives. They have a ready solution when assessing the buyout. The DOTC will either abort or go on with MRT3 buyout.
Now that a viable way to save the MRT 3 has been on the table, the DOTC must sit down with MRTH officials and discuss things rather than insist that DOTC must do what it has proven incapable of doing all these years – run MRT 3 properly. If there are objectionable provisions in the proposed agreement, Sec. Jun must tell us now rather than just avoid giving an explanation for DOTC’s lack of action. We must not wait for a tragic accident to happen.
The original MRT 3 contract seems problematic from the start. FVR did seem to have agreed to a very lopsided and problematic contract. Now is a good opportunity to correct objectionable provisions. There has to be room for give and take but they have to sit down and talk for anything to happen.
The other good reason for talking is the possibility that it would avoid an even longer legal conflict. That would only delay everything and our commuters would continue to suffer and risk their lives daily..
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