MANILA, Philippines - The government’s plan for a P54-billion Equity Value Buyout (EVBO) of the Metro Rail Transit-3 will not solve the problems plaguing the MRT-3, an official of the Metro Rail Transit Holdings II (MRTH-II) said Tuesday.
At a hearing conducted by the House committee on Metro Manila Development, MRT II chairman Robert Sobrepeña urged the government to reinstate the “single point of responsibility” scheme to allow the company to properly maintain and upgrade the MRT-3 for the safety of the riding public.
“The P54 billion EVBO would not in any way, benefit the maintenance and rehabilitation of the MRT system but will only be used to retire the bonds already owned by DBP (Development Bank of the Philippines) and LBP (Land Bank of the Philippines),” Sobrepeña told the panel chaired by Quezon City Rep. Winston Castelo.
“Public money will be transferred from one pocket of the government to another,” he added.
He said not a single centavo from the amount, which will have to come from taxpayers, will be used to repair and rehabilitate the MRT-3 facilities.
MRTH-II owns the MRT-3, which is operated by the Department of Transportation and Communications (DOTC).
The House panel has been conducting a probe of MRT-3 breakdowns after several lawmakers sought an inquiry into the recent accidents that were attributed to poor maintenance of the mass transit system.
In his Nov. 11 letter to DOTC Secretary Joseph Emilio Abaya, Sobrepeña said that reinstating the single point of responsibility is the solution to the MRT problems instead of the EVBO.
“The commuters are more concerned with efficient transportation service. We want those long queues to disappear. We want those restrooms to be functioning. We want the standards to be upgraded to be comparable to train systems in Hong Kong and Singapore,” Valenzuela City Rep. Magtanggol Gunigundo told DOTC officials during the hearing.
He said the DOTC has yet to roll out a complete plan to upgrade the facilities of MRT-3.
Sobrepeña said the DOTC should allow the MRT Corp. to handle under a single contract the maintenance, rehabilitation and upgrading of the MRT-3 under the management of its former maintenance provider, Sumitomo Corp.
Sumitomo designed, built and maintained the MRT-3 until 2012 when the DOTC suddenly tapped the services of a new firm.
Sobrepeña said the MRTH-II proposal will not just include corrective measures but also preventive maintenance and asset management plan as recommended by the MTR Hong Kong in its preliminary audit report.
The rehabilitation to be undertaken will include the immediate procurement of spare parts, replacement of broken and deteriorated rail tracks and other works necessary to rehabilitate the MRT-3.
He said the proposed budget for the MRT-3 rehabilitation and maintenance for 10 years would include $97.2 million for the improvement of the signaling system and refurbishment of the 73 existing coaches and $2.2 million monthly maintenance fee.
Abakada party-list Rep. Jonathan de la Cruz said the cost of the MRTH-II proposal is much lower than the EVBO, which would not address the safety concerns of the riding public but only profit the DBP and LBP.