The MRT-3 challenge

In a perfect world, nothing could better symbolize the “Tuwid na Daan” slogan of President Benigno “Noy” Aquino III than the train system that runs straight on rail tracks. But while the rail tracks are straight as these are, bumps along the way and loose soil and shaky ground can cause service interruptions, if not accidents that may be fatal at times.

The elevated trains of the Light Rail Transit (LRT) 1 and 2 and the Metro Rail Transit line 3 (MRT-3) are generally fast, mostly smooth and brought Metro Manila in step with the rest of the modern world. The train system makes life easier for the poorest of the poor, at the very least, especially for the state-subsidized fares of both LRT and MRT.

But ours is an imperfect world and the metro train system also betrays the dark truth that unfettered greed is also creating in the Philippines what Pope Francis calls a “new tyranny” that gorges itself on the poor.

Official data show that more than one million people ride the three Metro Manila train lines every day and most of them have grown used to the convenience of a modern train system since the LRT Line 1 from Monumento to Baclaran began operations in 1984.

The government-developed and operated LRT-1 has had its share of controversy in its over 30 years of operation. But those issues pale when compared to the ones surrounding the construction and operation of MRT-3.

The first stroke of genius was not so much the use of the build-lease-transfer (BLT) arrangement that was in vogue in the 1980s and 1990s. Under BLT, a developer is supposed to build the facility; lease it to the government so the developer could recoup investments; and ultimately, transfer it to the government at the end of the agreement.

The real genius was in the use of the government’s sovereign guarantee on its loans. The proponents of the train line, eventually called MRT Corp., invested $190 million in equity when construction began in 1996. However, two years later, the proponents sought international financing amounting to $462.5 and another $23 million in 2001. These loans got sovereign guarantee from the government.

All told, the project cost $675.5 million and only 28% of that amount came from the proponents. The rest of the money was raised on the sovereign credit of the Philippines.

Moreover, the MRTC was assured a net return-on-investment (ROI) of 15%, net of taxes and net of loan repayments. This was over the escalating rental fees that the government would have to pay for 25 years.

Shortly after the MRT-3 began operations in 1998, some MRTC shareholders, led by its chairman Robert John Sobrepeña, monetized their investments by offering bonds to be paid from the 15% net ROI paid by the government.

Since then, the government has paid MRTC some P35.2 billion in rent.

But in its 15 years of operation, there has been no upgrade on any of the MRT’s key systems. No new coaches were purchased although that was part of the BLT agreement.

When the government decided to acquire 48 new light rail vehicles for P3.76 billion, MRTC went to court and blocked the purchase because, they said, they had pre-emptive rights to sell the LRVs to the government.

Fortunately, the court decided in favor of the government and new coaches will be delivered starting next year, one and a half decades since starting operations.

When it was arguing for its right of first refusal, MRTC had the cheek to warn that if the new LRVs are allowed to run without adjustments to the system, the commuting public would be placed in mortal danger. 

But there has been no upgrade in the MRT-3’s signaling system in 15 years although it is a crucial component that can make the difference between briskly walking out of a train station and being carried out in a body bag. Only now is the government trying to procure a new signaling system, worth P184.7 million.

Neither has there been any upgrade of the MRT’s ticketing system although ridership has already reached more than 560,000 per day. The MRT was originally designed for a daily capacity of 350,000.

There is also a dispute on the revenues from the commercial and advertising spaces in train stations.

Last year, the government appeared to have learned its lesson when it announced that it was preparing a compromise deal where the government would buy out MRTC’s equity to the happy tune of P53.9 billion.

Last week, the DOTC set on September 9 the start of the public bidding process for a three-year maintenance contract for the MRT-3 amounting to P2.25 billion. Hopefully, this would roll on a fast track albeit the usual protracted bidding wars.

The stakes, however, have changed dramatically. The ante now consists not only of money, but the very lives of the hundred thousands of people who take the train every day. 

To force people to live with the possibility that the train they take twice a day, every working day isn’t working properly is an oppressive tyranny and it’s about time somebody pulled the emergency brake.

Last August 13, one of the MRT-3 coaches jumped off track and slammed into a barrier at the Taft Avenue station as it was being pushed by another coach. While there were no fatalities, the accident caused heavy traffic in the area and left at least 36 passengers injured.

Sen. Grace Poe will start today a public hearing on the LRT and MRT woes that her sub-committee on transportation will probe. Before doing so, Sen.Poe got her first-hand experience riding the MRT-3 last Friday. She lined up with the rest of the passengers waiting for their turn to ride the MRT from its North Avenue station in Quezon City and disembarked at Pasay Taft Avenue. Her trip took one hour and 30 minutes, excluding the 40-minute queue to ride it.

Called to the Senate inquiry are the country’s top transport officials led by Department of Transportation and Communications Secretary Joseph Emilio Abaya. Incidentally, Abaya did earlier his own ride of the MRT-3 but it was ridiculed by his detractors when he took it not during rush hour.

Such stunts may have unwittingly started what could be called MRT challenge.

In fact, former Commission on Elections (Comelec) commissioner Gregorio Larrazabal suggested to start such #MRTChallenge. In his Twitter account @GoyYLarrazabal, the former Comelec official last Saturday posted: “The #MRTChallenge is to make people open their eyes and EARS.. To LISTEN…TO feel.. To help the (sic) know what the real problems are.”

Initially, deputy presidential spokesperson Abigail Valte announced she will find time “one of these days” to take the MRT challenge. But will these solve the challenges that MRT-3 riders take every time they step into these trains?