CHANGING the ownership of Metro Rail Transit Corp. (MRTC) is part of the Duterte administration’s plan to solve the many ills plaguing “rapid transit system” of Metro Manila.
In a news briefing on Tuesday, Presidential Spokesman Harry L. Roque Jr. said changing the ownership of the MRTC is an action in the long-term.
“[The] Government has taken steps, while it is currently operating the MRT to procure much needed spare parts and they have taken steps now to enter into a contract with Sumitomo Corp. to be the maintenance provider as well, and this has been facilitated by the signing of an agreement between the governments of the Republic of the Philippines and Japan,” Roque said.
Roque explained these actions after announcing that new cases may be filed against former officials of the Department of Transportation and Communications over what he describes as the “MRT 3 mess.”
“There was a decision that cases will be pursued for those behind the miserable performance of MRT 3,” he told reporters. “There are pending complaints for plunder against officials of the previous administrations, specifically for awarding the maintenance contract to a company with absolutely no track record.”
Last year the government took over the maintenance of the MRT Line 3 after terminating a maintenance contract with Busan Universal Rail Inc. Aside from the filing of cases, Roque said the President has ordered to take several steps to address the problems plaguing the country’s second urban rail system.
“[T]he short-term is to purchase all necessary spare parts; the medium term is to enter into a maintenance contract with the original maintenance contractor Sumitomo; and the long-term, is to change the ownership of [MRTC], which appears to have contributed to problem of MRT 3 as well.”
Roque emphasized that the change in ownership of MRTC “will definitely happen during this administration.”
4 comments
Panay iyak ng shabulized yellowatrds patay na kurakot nila….huhuhu…:-(
There’s just one problem: The DOF said it will not release the government’s MRT shares for bidding (there is a Swiss Challenge pending with NEDA) until the system is ‘rehabilitated’. But how long will that take. Right now every time a coach is repaired, another breaks down, spare parts or not. Are we going to wait for the JICA loan to come through, assuming that their current audit doesn’t reveal that damage is too extensive to issue a loan? Does the DOTr even have a benchmark for when it can declare the system repaired? Only total rehab will do for a system that is too old to make spot repairs, even if we allow the Dalian trains. That’s why the Swiss Challenge should begin right away.
One of the interested parties is the consortium of Ayala Corp. and Metro Pacific Investments who also operate the Light Rail Manila Corp. of the LRT. They were the ones whose unsolicited proposal prompted a Swiss Challenge of the MRT shares. But the operation concession must be a pre-condition for the sale. One of the reasons the MRT ended up with incompetent maintenance providers is its reliance on different contractors. The success rate of the LRT shows that LRTC knows its stuff. Hopefully, the MRT goes to them lock, stock and barrel.
Give it to LRMC! they give exceptional job to service LRT1 riders. Maybe they can do it too to MRT3. Hope the government will roll this out soon.