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Gov’t, private owners urged to solve MRT-3 problems

Marvin Sy - The Philippine Star

MANILA, Philippines - Senators called on the government and private owners of the Metro Rail Transit 3 yesterday to sit down and thresh out a solution to the problems besetting the mass transit system, which has been breaking down almost daily, stranding thousands of commuters and worsening Metro Manila’s traffic woes.

In a hearing called by the Senate committee on public services, officials of the Department of Transportation and Communications (DOTC) and the private owners of MRT-3 blamed each other for the system’s worsening condition.

The government plans to address the problem by taking full ownership of the line through a buyout of the shares held by the Development Bank of the Philippines (DBP), the Land Bank of the Philippines (LBP) and the private sector.

The DOTC has asked for close to P54 billion of funds in the 2015 national budget for this purpose.

But private owners of MRT-3 claimed the government has not yet discussed the buyout tack with them.

“With respect to the Equity Value Buyout (EVBO), the MRT consortium has not received any offer or request from DOTC to discuss the buyout,” said Robert Sobrepeña, the former chairman of Metro Rail Transit Corp. (MRTC).

The MRTC owns MRT-3 while the DOTC operates the system. Sobrepeña’s family holds a majority stake in the Metro Rail Transit Holdings II, which owns MRTC.

Transportation Secretary Joseph Emilio Abaya refuted the claim of Sobrepeña, saying the government is constantly in touch with the MRTC.

Abaya said the government is only talking to the representatives of MRTC and is not obliged to talk to the private owners.

Sen. Francis Escudero said the attitude of the two sides toward each other may have contributed to the problem.

“It is clear that the poor service of the MRT-3 is because of the relationship between the DOTC and the MRTC,” he said. “The solution is for all you guys to get your act together. Sit down and talk instead of filing cases against each other to the detriment of the riding public,” Escudero said.

Sen. Grace Poe said that the two sides should communicate with each other “for the interest of our commuters.”

Sobrepeña pointed out that trouble began after the DOTC terminated its contract with Sumitomo Corp., the original maintenance provider of MRT-3.– With Jess Diaz

vuukle comment

DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS

DEVELOPMENT BANK OF THE PHILIPPINES

EQUITY VALUE BUYOUT

FRANCIS ESCUDERO

GRACE POE

LAND BANK OF THE PHILIPPINES

METRO MANILA

METRO RAIL TRANSIT

SOBREPE

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