Privatization answer to MRT woes

Government believes  privatization of the Metro Rail Transit (MRT3) will resolve the issues on the rail system.

The resulting rehabilitation and upgrade by the private sector would lead to the efficiency of the system.

The  Department of Transportation (DOTr) said on Friday it has given the group of Metro Pacific Investment Corp. (MPIC) and Ayala Corp. the original proponent status for the rehabilitation of the rail system which would allow it to take over its operation and maintenance.

“We… have initiated… the creation of the platform to explore possibilities including privatization to address the issues in MRT,” said Arthur DOTr secretary.

The grant of original proponent status to the MPIC-Ayala consortium does not automatically mean its proposal is approved.

“There will be a discussion , we will agree (on the proposal) and submit  it to NEDA (National Economic and Development Authority). Once approved by NEDA and the President , there will be a Swiss challenge,” said Tugade. The NEDA board is chaired by President Duterte.

Last July , MPIC and Ayala submitted an unsolicited proposal to the DOTr to upgrade and rehabilitate the MRT 3 for P 12.5 billion. The group   also offered to buy out the private and government stakeholders in MRT-3 and take over operation and maintenance of the rail system .

The rehabilitation will be undertaken through a concession arrangement with the government for 30 years similar to Light Rail Manila Corp., concessionaire for LRT-1.

The government through Land Bank of the Philippines and the Development Bank of the Philippines holds an 80-percent economic interest in MRT-3. The balance is held by creditors of Metro Rail Transit Corp.

MRT-3 currently carries over 460,000 passengers daily, well beyond its  design capacity.  MRT-3 station runs from North avenue in Quezon City to Taft Avenue in Pasay City.

 The DOTr is looking at terminating the contract of the MRT- 3 maintenance provider Busan Universal Rail Inc. (BURI) which will lapse in December next year due to several technical glitches on the rail system .

Cesar Chavez, DOTr undersecretary for rail,  BURI failed to execute the P907-million general overhaul contract for the light rail vehicles.

 Chavez said  commuters should expect three to five unloading incidents daily at the MRT-3 Last Friday, only 17 trains were operational  from 20 trains that it should have deployed .

But BURI in a statement called on the DOTr to investigate why technical glitches and service interruptions continue to persist despite proper maintenance of the MRT-3.

In a letter to MRT-3 general manager Rodolfo Garcia obtained by media the current maintenance provider pressed for the conduct of the said probe “to confirm that the MRT-3  design flaws are the primary reason for the recurring service interruptions of the system”.

The service provider specifically cited that---during the first year of MRT-3 operations in 2000 at the time also the trains were all brand new-- it recorded a total of 1,492 glitches, while in n 2008 the glitches reached 1,927, and in 2009 it climbed to 2,199. (M. Iglesias)

MRT-LRT common station to break ground on Sept. 29

THE GOVERNMENT and its private partners are set to break ground on the Metro Rail Transit (MRT)-Light Rail Transit (LRT) common station project on Sept. 29.

“We will break ground on Sept. 29,” Department of Transportation (DoTr) Secretary Arthur P. Tugade told reporters in Filipino on the sidelines of the signing of an agreement for integrating payment systems on Luzon tollways.

Mr. Tugade said that there are no more hurdles before construction can start.

“We have unified the stakeholders… If a groundbreaking is scheduled, it means the project has been studied, it will go through,” Mr. Tugade said.

The common station project aims to link three major commuter rail networks traversing Metro Manila and nearby areas — the LRT-1, MRT-3, and the MRT-7, which is currently undergoing construction and is expected to be completed in the last quarter of 2019.

The common station project has been delayed by legal disputes

The cancellation of the project was contributed to the arrest and detention of former president and now Pampanga Rep. Gloria Macapagal-Arroyo from a controversy after a Pasay court issued a warrant of arrest against her, following the filing of a complaint for electoral sabotage by the Commission on Elections and She was transferred to the Veterans Memorial Medical Center in Quezon City on December 9, 2011, the impeachment trial, conviction and removal of former Supreme Court Chief Justice Renato Corona on May 31, 2012 and his death on April 29 due to complications of a heart attack and suffered from kidney disease and diabetes last year and outgoing plunder trial case of former senators Jinggoy Estrada and Ramon Revilla, Jr. and the arrest warrant against Senator Leila de Lima for allegedly violating the drug trafficking law

In January, the government and private companies involved in the project signed a memorandum of agreement after years of deadlock on the issue of the location of the common station.

The agreement was signed by Mr. Tugade; Public Works Secretary Mark A. Villar; Metro Pacific Investments Corp. Chairman Manuel V. Pangilinan; SM Prime Holdings, Inc. Director Hans T. Sy; Ayala Corp. Chief Executive Officer Jaime Zobel de Ayala; and San Miguel Corp. President and CEO Ramon S. Ang.

Under the agreement, the first common station will be located near SM North EDSA and which will be part of the Metro Rail Transit (MRT) 7 while the second will be in front of rival mall, Trinoma.

The Light Rail Transit Authority (LRTA) and SM Prime in 2009 entered into an agreement for the common station to be located at a junction near SM City North EDSA. In 2013, the then Department of Transportation and Communications, citing construction costs, decided to transfer the common station to a site in front of TriNoMa.

SM Prime then sued the government for breach of contract. In July 2014, SM Prime secured a Supreme Court (SC) stay order stopping the transfer of the common station’s site to TriNoma. The SC in May 2016 refused the government’s plea to lift the halt order.

The DoTr previously said that SM Prime, DoTr, and LRTA will file a joint manifestation with the SC advising the Court of the agreement to address the issue of the temporary restraining order. — Patrizia Paola C. Marcelo

House amends law on urbanized cities, provinces

The House of Representatives this week unanimously approved on third and final reading House Bill 6177 which seeks to rationalize the creation of municipalities, highly-urbanized cities, and provinces.

The bill is titled “An Act Rationalizing the Income Requirements for the Creation of a Municipality, the Declaration of Highly Urbanized Status in the Case of a Component Cities and the Creation of a Province, Amending for the Purpose Sections 442(a), 452(a), and 461(a), (b) and (c) of Republic Act No. 7160, as Amended, Otherwise Known as the ‘Local Government Code of 1991.”

On the creation of a municipality, the bill sets the following requirements: (1) average annual income of at least P12.5 million for the last two consecutive years; (2) population of at least 25,000 inhabitants; and (3) adjoining territory of at least 50 kilometers.

Section 442 of the bill titled Requisites for Creation provides that (a) A municipality may be created if it has an average annual income, as certified by the provincial treasurer, of at least P12.5 million for the last two consecutive years based on the 2016 constant prices; a population of at least 25,000 inhabitants as certified by the Philippine Statistics Authority (PSA); and a contiguous territory of at least 50 square kilometres as certified by the Lands Management Bureau: Provided, That the creation thereof shall not reduce the land area, population of income of the original municipality or municipalities at the time of said creation to less than the minimum requirements prescribed herein.”

On the establishment of a highly-urbanized city, the requisites are as follows: (1) cities with a minimum population of two hundred thousand 200,000 inhabitants; (2) average yearly income of at least P250 million for the last two consecutive years.

The bill grants Congress the power to declare a city a highly urbanized city within 30 days after it has met the prescribed requirements.

The bill further provides that the declaration be ratified in a plebiscite to be conducted in the province in which the city belongs.

Meanwhile, Section 452 of the bill titled Highly Urbanized Cities provides that (a) Cities with a minimum population of 200,000 inhabitants, as certified by the PSA, and with a locally-generated annual income for the last two consecutive years of at least P250 million based on the 2000 constant prices, as certified by the Department of Finance, shall be classified as highly urbanized cities. Provided, That the average annual income shall include the income accruing to the general fund, but excluding the Internal Revenue Allotment (IRA) shares, special funds, trust funds and non-recurring income.”

Moreover, Section 453 of the bill titled Duty to Declare Highly Urbanized Status, provides that 'it shall be the duty of Congress to pass a Joint Resolution to declare a city as highly urbanized within 30 days after it shall have met the minimum requirements prescribed in the immediately preceding section, upon proper determination therefor. Provided, That the declaration shall be ratified in a plebiscite by the qualified voters of the province in which the city geographically belongs.”

On the formation of a province, the bill provides the following requirements: An average annual income of not less than P200 million for the last two consecutive years; and either of the following: A population of not less than 250,000 inhabitants or a contiguous territory of at least two thousand square kilometres.

Section 461 titled Requisites for Creation provides that (a) A province may be created if it has an average locally-generated annual income for the last two consecutive years, as certified by the Department of Finance, of not less than P200 million based on the year 2000 constant prices and either of the following requisites:

“(i) A contiguous territory of at least 2,000 square kilometres, as certified by the Lands Management Bureau; or

“(ii) A population of not less than 250,000 inhabitants as certified by the PSA;

“Provided, That the creation thereof shall not reduce the land area, population, and income of the original unit or units at the time of said creation to less than the minimum requirements prescribed herein.

“(b) The territorial jurisdiction of a newly-created province shall be properly identified be metes and bounds. The requirement on land area shall not apply where the province proposed to be created is composed of one or more islands. The territory need not be contiguous if it comprises two or more islands or is separated by a chartered city or cities which do not contribute to the income of the province.

“(c) The average annual locally-generated income shall include the income accruing to the general fund, exclusive of the IRA shares, special funds, trust funds, transfers, and non-recurring income.” / ABR

Lopezes kabado kay PDu30 ABS-CBN SIGNING OFF?

Tatlong taon bago mapaso ang prangkisa, naghahanap na ang may-ari ng higanteng television network ABS-CBN Corporation ng mabibiling kompanya upang maipagpatuloy ang kanilang operasyon.

Ang hakbang ng mga Lopez ay bunsod ng pa­ngako ni Pangulong Rodrigo Duterte na haharangin niya ang renewal ng prangkisa ng ABS-CBN na magtatapos sa Disyembre 31, 2023.

Sa nakuhang impormasyon ng Abante mula sa mapagkakatiwalaang source, kinausap na ni Eugenio Lopez III, chairman ng kompanya, si Bro. Eddie C. Villanueva, lider ng Jesus is Lord Movement (JILCW).

Nais umano ni Lopez na bilhin ang ZOE Broadcasting Network Inc., ang kompanyang minamay-ari ng JIL. Ang nasabing network ang nagmamay-ari ng flagship station DZOE-TV (GMA News TV-11), affiliate ng karibal ng ABS-CBN na GMA Network, at ang DZOZ-TV Light Network Channel 33.

Noong Hulyo 2016 lamang ni-renew ng Kongreso ang 25-taong prangkisa ng ZOE, dating minamay-ari din ng influential religious group na El Shaddai DWXI Prayer Partners Foundation International ni Bro. Mike Z. Velarde bago sila naghiwalay ni Villanueva sa kompanya noong dekada 90.

Sa negosasyon ng da­lawa, bukas umano ang lider ng JILCW na ibenta sa ABS-CBN ang ZOE TV pero hindi 100 percent na isusuko niya ang kompanya dahil nais nitong magkaroon ng equity sa ABS-CBN.

Sa kabila nito, wala pang indikasyon na isinara na ang deal dahil wala na umanong kasunod na meeting ang dalawa.

Ang ABS-CBN at ang Philippine Daily Inquirer ang paboritong upakan ni Pangulong Duterte dahil sa slant ng mga balita laban sa kanya. Nitong Hulyo lamang ay bago na ang may-ari ng Inquirer nang ibenta ng pamilya Prieto ang majority stake nila sa business tycoon na si Ramon Ang.

Hindi makalimutan ni Pangulong Duterte ang ginawa sa kanya ng ABS-CBN noong 2016 presidential elections dahil kahit nagbayad na siya para sa infomercial, hindi naman ipinalabas ng kompanya ang komersyal at hindi rin umano ibinalik sa kanya ang bayad.

Dahil sa naging posisyon ng Pangulo, natengga sa House committee on legislative franchises na pinamumunuan ni Palawan Rep. Franz Alvarez ang House Bill No. 4349 para sa 25-year franchise renewal ng ABS-CBN.

Hindi rin makagalaw si Sen. Grace Poe, chair ng Senate committee on public services, dahil kailangang aprubahan muna ng Kamara ang franchise application ng ABS-CBN bago magdaos ng public hearing at isalang sa pagpapatibay sa Senado.

Noong 16th Congress, nagsumite rin ang ABS-CBN sa Kongreso ng aplikasyon para sa renewal ng franchise subalit noong 2014, binawi ang aplikasyon, marahil ay umaasa na ‘kaibigan’ nila ang mananalo sa 2016 presidential elections.

Kapag hindi nakapag-renew ng franchise ang ABS-CBN sa 2020 at wala silang nalipatang channel, nanganganib na magsara ito at mawalan ng trabaho ang tinata­yang 11,000 empleyado ng kompanya.

Noong 2016 kung saan tumabo sila sa kita ng mga kandidatong tumakbo sa halalan, naitala nila ang net income na P3.52 bilyon.

Nagsimula ang kompanya bilang Bolinao Electronics Corporation noong 1946 bago binago ang pangalan ng kumpanya noong 1952 bilang Alto Broadcasting System (ABS). Kasunod nito ay nagsanib naman sila ng kumpanyang Chronicle Broadcasting Network (CBN).

Samantala, hiningan ng reaksyon ng Abante ang ABS-CBN ukol sa ba­litang ito subalit itinanggi ng isang opisyal ng network na may balak silang bilhin ang ZOE Broadcasting Network Inc.

“It’s not true that ABS-CBN is buying their stations,” pahayag ni Kane Errol Choa, head ng ABS-CBN Corporate Communications.

Groundbreaking for LRT-MRT common station set on Sept. 29

The Department of Transportation (DOTr) has scheduled the groundbreaking for the common station linking Light Rail Transit Line 1 (LRT-1) with Metro Rail Transit (MRT) Lines 3 and 7 this month.

Transportation Secretary Arthur Tugade said the groundbreaking would be held on Sept. 29, months after the DOTr and the private sector agreed on its location.

The common station is estimated to cost P2.8 billion.

Tugade said a joint manifestation has been filed before the Supreme Court to address the temporary restraining order (TRO) obtained by SM Prime Holdings Inc. (SMPHI) from the SC on the common station.

Last January, a memorandum of agreement was signed by Tugade, Public Works and Highways Secretary Mark Villar and Light Rail Transit Authority (LRTA) administrator Reynaldo Berroya with SMPHI, LRT-1 operator Light Rail Manila Corp., San Miguel Corp., which is building MRT-7, and North Triangle Depot Commercial Corp., to end the deadlock spanning nearly eight years for the common station.

The common station covers 13,700 square meters and will be located between The Annex at SM North EDSA and Landmark-Trinoma mall in Quezon City.

It will link the LRT-1, which runs from Roosevelt station in Quezon City to Baclaran station in Pasay City, the LRT-2 running from Recto station in Manila to Santolan station in Marikina City, the MRT-3 running from North Avenue station in Quezon City to Taft Avenue station in Pasay, and the MRT-7 currently being built from North Avenue in Quezon City to Colinas Verdes Subdivision, San Jose del Monte in Bulacan.

The common station is expected to provide passengers comfort in transferring from one railway to another.

The DOTr said the common station is expected to be completed by April 2019.

Construction of the common station has been put on hold due to legal issues.

The cancellation of the project was contributed to the arrest and detention of former president Gloria Macapagal-Arroyo, the impeachment trial, conviction and death of former Supreme Court Chief Justice Renato Corona and the multi-million peso pork barrel fund scam.

In August 2014, the SMPHI obtained a TRO from the high court to prevent the then Department of Transportation and Communications from transferring the common station near Trinoma.

The SMPHI had entered into an agreement with the LRTA in 2009 to put up the common station in front of SM North EDSA.

http://www.philstar.com/metro/2017/09/18/1740106/groundbreaking-lrt-mrt-common-station-set-sept.-29

MRT hub set to begin construction

The Department of Transportation said it will start the construction of a common station that will link Metro Manila’s overhead train system in Quezon City before the end of this month.

Transportation Secretary Arthur Tugade said the groundbreaking for the P2.8-billion common station for Light Rail Transit Line 1, Metro Rail Transit Line 3, and the planned MRT 7 was scheduled on Sept. 29.

Tugade said SM Prime Holdings Inc. filed a motion before the Supreme Court to remove the temporary restraining order on the common station project.

The common station proposal started in 2009 but was put on hold due to legal issues. The Light Rail Transit Authority signed a deal with SMPHI to build the station near SM North EDSA.

However, when President Benigno Aquino III came to power on June 30, 2010, the project was stalled indefinitely.

Then DOTC Secretary Manuel Roxas II ordered a review of the project, and the agency proceeded to change certain project specifications.

Four years later, the then Department of Transportation and Communications decided to build the station near Ayala’s Trinoma citing reasons to cut costs. The court intervened and issued a temporary restraining order in favor of SMPHI to stop the construction of the project. The parties agreed to build the station between SM City North EDSA and Trinoma.

Busan asks DOTr to check real cause of MRT3 technical glitches

Busan Universal Rail Inc., the maintenance provider of Metro Rail Transit Line 3, asked the Department of Transportation to investigate why technical glitches and service interruptions continue to persist despite proper maintenance of the line.

Busan, in a letter to MRT3 general manager Rodolfo Garcia, pushed for the conduct of a probe “to confirm that the MRT3  design flaws are the primary reason for the recurring service interruptions of the system.”

The service provider noted that during the first year of MRT3 operations in 2000 when the trains were all brand new, the system recorded a total of 1,492 glitches.  The glitches climbed to 1,927 in 2008 and 2,199 in 2009.

Busan said the original system flaws, compounded by overloading and excessive vibrations and poor track condition that lead to failure of electronic, electrical and mechanical parts, resulted in the continuing occurrence of glitches and stoppages.

It said despite these recurring  problems, Busan successfully minimized the occurrence of glitches to 992 as of mid-June in 2017 from 2,776 in 2015.

Busan legal counsel and spokesperson Charles Mercado said the maintenance provider was open to an extensive system audit to once and for all produce an in-depth factual report of the current status of the system as opposed to putting all the blame to the maintenance contractor.

Mercado said that “no action has been taken” by Transport Undersecretary for rails Cesar Chavez on the design issues of the system.

“Since, it is undoubtedly DOTr-MRT3’s primary objective to serve the interest of the riding public, we look forward to your profound support regarding the” Busan’s letter to Garcia stated.

Mercado said DOTr should also start the rail replacement as soon as possible to help minimize or eliminate these glitches.

The bidding for the rail replacement was already conducted by DOTr, but its actual implementation has been delayed for almost a year now, he said.

Mercado assured the government that Busan was moving forward to meet its commitment of train reliability, safety and comfort for the ridership.

The company restored an average of two to three cars every month since its contract started, fielding up to 22 trains (consisting of three cars each) during peak periods.

Busan enables the MRT’s 91-percent fleet operability to constantly beat LRT’s averages of 77 percent for LRT-1 and less than 50 percent for LRT-2.

http://thestandard.com.ph/business/biz-plus/247188/busan-asks-dotr-to-check-real-cause-of-mrt3-technical-glitches.html