Wednesday, November 22, 2017

UAAP Magazine









NLEX to extend road to Bataan

NLEX Corp. will propose to the Toll Regulatory Board the extension of the North Luzon Expressway to Bataan province.

“We’re packaging the project, hopefully in three months we can submit the proposal but it’s part of our concession,” NLEX president and chief executive Rodrigo Franco said.

NLEX Phase 3, with the project cost estimated at over P10 billion, is a  37.76-kilometer, two by two-lane expressway from Sto. Tomas, Pampanga to Dinalupihan, Bataan.

Franco said the company was expecting to complete the right of way acquisition in two years and start the construction by 2020.

Phase 1 of NLEX consists of four segments with a total length of 92 kilometers, including the rehabilitated and expanded 84-km stretch from Balintawak, Quezon City to Mabalacat, Pampanga and the 8.5-km Segment 7 from Hermosa,  Bataan to Subic Freeport.

Phase 2 of NLEX consists four segments with a length of 21 kilometers, involving the construction of the greenfield northern C5 to connect the existing C5 from C.P. Garcia Ave. in the University of the Philippines complex in Diliman, Quezon City to NLEX, and extend westward to MacArthur Highway in Valenzuela City, turning south down to C3 in Caloocan City. 

NLEX also expanded its San Fernando Interchange in Mabalacat City in Pampanga to ease mounting traffic issues within the vicinity of SM San Fernando and Robinsons Malls and match the progress in one of the busiest tollway interchanges.

Two new  bridges crossing the NLEX were built to function as separate carriageways, while the interchange ramps were widened to four lanes in each direction. The east and west roundabouts along Jose Abad Santos Avenue were also removed to pave way for the installation of automated traffic signals. 

Meanwhile, the Sta. Ines Interchange also in Mabalacat City is also being expanded to accommodate increasing traffic growth. NLEX is constructing a new right-turning ramp in the direction of the Mabalacat-Magalang Road and improve access to the SCTEX. 

Along the San Simon interchange, the main bridge is undergoing retrofitting as part of NLEX’s bid to ensure safety of motorists. Built in 1970s, the bridge needs repair to improve strength and durability.

Traffic impact studies are also in the works to decongest San Simon and Angeles interchanges. 

Earlier this year, the NLEX fully opened to the public new expressway lanes between the Sta. Rita to San Fernando and Dau to Sta. Ines portions of the NLEX, which have since improved travel time and safer travel in Bulacan and Pampanga. 

NLEX earlier said it was investing  P29.43 billion in expressway projects between 2018 and 2020.

The projects include NLEX Segment 10 which is projected to be operational by the first half 2018; Segment 10 from C3 to R10 section to be completed by first quarter of 2019; and the Subic Freeport Expressway to be finished by the first quarter of 2019.

The NLEX-SLEX Connector Road is expected to be completed by the first quarter of 2021.

CAF TO SUPPLY 30 LRVS TO MANILA (THE PHILIPPINES)

The Republic of the Philippines' Department of Transportation has awarded Mitsubishi Corporation and CAF (as train manufacturer) a new rolling stock supply contract for Manila Light Rail Transit (LRT) Line-1. The €225 million worth contract is funded through a Japanese ODA Loan Agreement subscribed by the governments of Japan and the Republic of the Philippines.

Manila, the capital of the Philippines is considered one of the cities with highest population density in the world. This project aims to improve the line capacity, contributing to cater for the growing number of passengers, improving service quality as well as helping to reduce pollution levels in the city.

LRT Line-1, elevated track line which covers 20Km in length and crosses Manila from north to south. The line is currently being extended with a further 12Km section towards the Cavite Province. CAF's scope includes the manufacture of 30 LRV-type units to be delivered within the 2020 - 2022 period.

These units will be bi-directional trains with catenary power supply (750 Vdc) and sixteen doors on each side, which will provide access for passengers to board and exit the train comfortably. The units, designed to run at a design speed of 70km/h, will have a length of 106m and offer a 276-seat layout which will in turn maximise capacity for standing passengers.

It is worth mentioning the relationship between CAF and Mitsubishi Corporation has led to the development of several joint projects in recent years. Some of these joint projects include the supply of automatic underground units for Istanbul (Turkey) and trams for Canberra (Australia).

This is the first contract awarded to CAF in the Philippines and confirms the company's expectations of securing a significant order volume during the second semester of 2017. During this period, as well as this contract in Manila, CAF has won other contracts to be added the company's backlog of orders which include the supply of trams for Stockholm, De Lijn, Consenza, Seattle and Kansas; metro units for Alger; and trains for the UK and New Zealand.

Duterte won't sack Tugade over MRT woes

President Rodrigo Duterte on Tuesday said he is rejecting calls for him to sack Transportation Secretary Arthur Tugade amid the slew of glitches encountered by the Metro Rail Transit (MRT-3) system.

“I will not do that. I have to trust in Tugade that he can correct the mistakes there, if there are, and fix it,” Duterte told reporters in a chance interview in Taguig City.

Tugade earlier said he served at the pleasure of the President after an administration critic, Magdalo party-list Rep. Gary Alejano, called for his resignation amid problems hounding the MRT-3, Metro Manila’s busiest but ill-maintained rapid transit system.

Alejano's call came days after an MRT coach detached from the train between the Ayala and Buendia stations, forcing commuters to walk on the tracks.

The President on Saturday apologized for the inconvenience caused by the incident, which occurred about a week after the government terminated the maintenance contract of Busan Universal Rail Inc. and took over the railway's upkeep.

Transportation Undersecretary for Railways Cesar Chavez had said the National Bureau of Investigation (NBI) would look into the incident, which could be an attempt to sabotage MRT operations.

Tugade refrained from commenting on the investigation, saying he did not want to preempt the NBI.

The NBI was called in to look into possible "human negligence" while the MRT would investigate the technical aspect of the incident, said the train system's spokesperson Mike Capati.

"Our MRT trains are safe. We're trying our best to maintain our trains," he said, adding there was no offloading of passengers over the weekend.

The MRT runs the length of EDSA and ferries over 500,000 people a day.

Duterte keeping Tugade as transportation chief

'I have full trust in Tugade that he can correct the mistakes there and fix it,' says President Rodrigo Duterte amid complaints about the state of the MRT3

Despite public outrage over the recent Metro Rail Transit Line 3 (MRT3) glitches, President Rodrigo Duterte said he won't fire Transportation Secretary Arthur Tugade.

"I will not do that. I have full trust in Tugade that he can correct the mistakes there and fix it," said Duterte on Tuesday, November 21, during a media interview.

The President's reaffirmation of trust in his appointee comes after two lawmakers, Magdalo Representative Gary Alejano and Anakpawis Representative Ariel Casilao, called forTugade's resignation.

Duterte said he would be "resisting" such demands.

"I woud be resisting the call or, if you want to put it in another [way], I will decline the request," said the President.

Duterte did not give a timeframe or deadline for when he wants Tugade to end the MRT3 woes. (READ: TIMELINE: MRT3 mishaps)

He only said that such problems are normal given the complicated nature of transportation systems.

"You know, the problems, they come and go, they crop up every day, of anything, and you must also remember that, is it a cliché or is it a colloquial – Murphy's Law. If anything can go wrong, it will go wrong, and it can happen every day to anybody," said Duterte.

The President had previously defended Tugade from allegations of corruption.

Dissatisfaction of certain sectors with the Department of Transportation (DOTr) has cropped up after major glitches in the MRT3. On November 16, around 140 commuters were forced to walk on railway tracks after an MRT coach got detached from the rest of the train. (READ: MRT woes: How often do they happen?)

Earlier on Tuesday, the DOTr filed a plunder complaint against former transportation officials and other Cabinet members under the Aquino administration for an allegedly anomalous contract with maintenance provider Busan Universal Rail Incorporated (BURI).

Intermodal transport terminal, ininspeksyon ng mga opisyal ng DOTr

Binisita at ininspeksyon ng mga opisyal ng DoTr ang itinatayong, unang intermodal transport terminal sa bansa.

Ang Southwest Integrated Terminal Exchange (SWITX), na itinatayo sa 4-ektaryang lupain sa Philippine Reclamation Authority (PRA) property sa coastal road sa Tambo Parañaque City, ay magbibigay ng easy access sa ibat ibang mode of public transportation, rail networks, city buses, UV express at jeepneys para ihatid ang mga pasahero sa kanilang destinasyon.

Tinitiyak nito ang ligtas, maginhawa, at hassle-free travel experience para sa commuting public.

Ang PhP3-billion terminal ay inaasahan na makumpleto at maging operational sa ikalawang bahagi ng April 2018.

Isa lamang ito sa limang big-ticket infrastructure projects na pasisinayaan ng Department of Transportation (DOTr) sa susunod na taon.

As of October 2017, ang terminal ay 33.9 percent nang kumpleto.

Ito ay bahagi ng P7.7-billion Integrated Transport System (ITS) Project ng pamahalaan, (na inaprubahan ng National Economic Development Authority (NEDA) Board)

Ang operasyon ng ITS terminals ang nakikitang mabisang hakbang upang i-decongest ang Epifanio delos Santos Avenue (EDSA).

Mayroon daw itong airport-like experience.

Ang Southwest Integrated Terminal Exchange (SWITX)ay dinisenyo katulad ng terminal ng paliparan na may multi-level na platform. Mayroon itong passenger terminal building, embarkation and disembarkation bays, staging bays, ticketing and baggage handling facilities, at park-ride facilities.

Mayroon din itong online at on-site booking at ticketing system, sistematikong vehicles and passengers’ queuing, loading, at unloading, air-conditioned lounges at waiting areas para sa mga pasahero, mayroon din retail stores at food centers, at ang mga drivers ay mayroon sariling retiring room o pahingahan.

Kakabitan dn ng CCTVs at baggage scanners at may security personnel 24/7 upang tiyakin ang kalgtasan ng mga pasahero.

LRT1 getting 30 Japan-made train sets


A total of 120 new rolling coaches for the Light Rail Transit (LRT) Line 1 supported by Japan International Cooperation Agency (JICA) through the Official Development Assistance (ODA) are seen to help decongest Metro Manila and enhance the business climate in the country, a Japanese official said on Monday.

“Through the project, JICA aims to support the Philippines in accommodating growing demand for quality mass transport and job opportunities,” said Susumu Ito, chief representative of JICA Philippines office.

“The present administration’s thrust to usher in a ‘golden age of infrastructure’ could also mean a ‘golden age for investments’ in the Philippines,'” he added.

With this, Ito echoed JICA’s hopes to continue contributing to the Philippine economic growth “in a sustainable way through infrastructure development.”

The Department of Transportation has awarded the contract to supply said new rolling stocks to Mitsubishi Corporation, the latter is set to supply 120 cars, equivalent to 30 train sets, to LRT Line 1 beginning 2020 until 2022.

According to the Japanese agency, the said project is part of its JPY43,252 million ODA loan for ‘Capacity Enhancement of Mass Transit Systems in Metro Manila Project’ that aims to support quality transport infrastructure in the Philippines to help sustain the country’s robust economic growth.

The LRT Line 1 new rolling stocks will use Japanese technology and products while helping reduce greenhouse gas emissions.

Once completed, JICA said the new rolling stocks of LRT Line 1 can accommodate 1,388 passengers per train and more than double the number of running trains to 222.

Meanwhile, the Private concessionaire Light Rail Manila's directive is to rehabilitate the 20 stations and train cars of LRT1 in 18 months, construction of new stations Ayala Boulevard, 10th Avenue, Malvar and Landmark Annex and extend the line from Baclaran to Niog, Bacoor.

The Ayala Boulevard, 10th Avenue stations will use the LRT-1 Station Concept, the Original LRT-1 Station Design along Taft and Rizal avenues.

Consunji’s passion to build

The late David M. Consunji began his construction business in 1954 with just P500, a second-hand cement mixer, and a brand new pickup truck.

Trained as a civil engineer (1947 UP), DM Consunji  said, “the cement mixer was like a violin to me.”

Over the next 63 years, Consunji built a business whose portfolio of projects, reputation, quality of work, and profitability would ring like music to an entrepreneur’s ear.

Today, Consunji’s family holding company, DMCI Holdings Inc. (founded 1995) has a market cap of P205.8 billion.  With the family’s 69.43 percent ownership, David left behind a P142.88 billion ($2.8 billion) wealth.

DMCI Holdings is a very efficient company. It has only 12 employees, including eight executives and officers.

Yet, it had, as of Dec. 31, 2016, assets of P149 billion, equity of P75 billion, revenues of P57.2 billion, and profits of P12.83 billion.  The 2016 income was up 19 percent from P10.77 billion in 2015.

The founder David Consunji died on Sept. 4, 2017.  Born 1921, Consunji was 96.  “Recognized locally as the father of the contemporary construction industry, DM built landmarks and redefined cityscapes for generations of Filipinos. He valued not the quick profit but the satisfaction of doing one’s work well, honestly and proudly. The board of directors, management, and employees of the DMCI group of companies deeply mourn his passing,” said DMCI Holdings.

For Consunji, construction was a profession, a calling, a passion and music.  It was less as a business.  He focused on quality and efficiency.  After all, the projects and edifices he built carried his name.  Most of the buildings in Makati were done by Consunji.  As were many of the highways and structures that dot the skyline of Metro Manila and other major cities in the country.  He was secretary of the Department of Public Works, Transportation and Communications from 1970 to 1975.

David’s son, Isidro Consunji, 68, inherits the company, the family culture of excellence, and the reputation for quality.

Sid is chairman, president and CEO of DMCI Holdings.

Sid has a bachelor of science in Engineering (UP), Master of Business Economics (Center for Research and Communication), Master of Business Management (Asian Institute of Management), and Advanced Management (IESE School, Barcelona, Spain).

DMCI Holdings has expanded to include four major subsidiaries: D.M. Consunji Inc. (DMCI) DMCI Project Developers Inc. (PDI), and Semirara Mining and Power Corp. [(SMPC) (formerly Semirara Coal Corp.)]. In 2006, the company entered into a 50-50 consortium with Metro Pacific Investments Corp., which won the bid to acquire 84 percent stake in Maynilad Water Services Inc. (MWSI).

In 2007, the company established a wholly-owned power generation subsidiary to engage in the construction, operation and maintenance of power plants. Late in 2009, the company, through SMC, acquired a 2 by 300-megawatt nominal capacity coal-fired power plant located in the province of Calaca, Batangas.

Founded in 1954, the construction subsidiary DMCI is an industry leader, noted for quality projects delivered on or ahead of time and its pioneering application of advanced engineering methodology. DMCI Holdings is the Philippines’ biggest coal producer.  Coal is also the holding company’s biggest moneymaker.

Meanwhile, in just 10  years, DMCI Homes built the most comfortable, and resort-type communities for urban dwellers, in Quezon City, Taguig City, Mandaluyong City, Pasig City, and Parañaque City. The developments are complete with resort-type amenities and facilities, like wide open space around the housing structures, gardens with Koi ponds, rows of trees, and thick foliage.    The price ranges are within comfortable reach of the average Filipino family.

Back to the mixer in 1955, someone offered to buy it at 5x he paid for it. He refused.In his memoirs, David explained: “To me, accepting [the] offer would have been like a violinist or a flutist selling his instrument—treating it like a commodity to buy and sell. And of course, that would be unthinkable for a genuine musician. The concrete mixer was my equivalent of a violin. It was the tool which formed the basis of my calling.”

Before 1955, David apprenticed “for four months without pay to be a builder, gradually learning about real estate and land development.” From his apprenticeship at Sta. Clara Construction, David took in more construction projects, and at the same time, handling on small projects on the side.

By the 1950s, Consunji decided: “Do construction work on my own.” His early projects were building chicken houses for the government.  Beginning 1955, DM Consunji Inc. was helping shape Makati Central Business District.

Projects included the old Monterey Apartments, the Rizal Theater, and Tower One and Exchange Plaza. The company also built the Shangri-La Hotels in Makati, Mactan and Boracay, Manila Hotel, The Westin Philippine Plaza, the Asian Hospital Medical Center, among other distinct landmarks. DMCI also constructed the Ortigas Center financial district South Metro Manila Skyway, LRT 1 North Extension, Tarlac-Pangasinan-La Union Toll Expressway.  

Southwest Integrated Terminal Exchange ‘Switx’ hub to open April 2018

The government is hurrying the construction of the P3-billion Southwest Integrated Terminal Exchange, the first modern intermodal public transport terminal to be built in the country, which is projected to be completed on or before April next year.

The transportation hub, located in a four-hectare land along Coastal Road in Parañaque City, will provide seamless interconnectivity of the different modes of transportation from the neighboring provinces south of Metro Manila.

“This ensures a safe, convenient, and hassle-free travel experience for the commuting public,” said Thomas Orbos, Metro Manila Development Authority general manager and concurrent Transportation undersecretary for roads and infrastructure.

Orbos said the facility, which will be fully operational by the second quarter of 2018, is among the five big-ticket infrastructure projects that the Department of Transportation will inaugurate next year.

As of October 2017, the terminal is already 39 percent complete.

The terminal is envisioned to be a modern transportation hub that will significantly improve the commuting and terminal experience of passengers.

“Secretary Tugade’s instruction was clear—It should be able to house an intermodal facility where people can easily transfer from one transport mode to another, and must have easy access to trains, cabs, and other public utility vehicles,” Orbos said.

The facility will be the first among several terminals that will be built around the peripheries of Metro Manila. The strategic location will maximize road usage and reduce the number of public utility vehicles plying the busy road networks such as Epifanio de los Santos Avenue, particularly the areas of Baclaran and Taft Avenue.

Also, with the government’s Route Rationalization Plan that will be soon implemented, reorganization of routes will be a priority. This means provincial PUVs will only be allowed to load and unload in Switx, avoiding Edsa.

Switx was designed to resemble an airport terminal with multi-level platforms. It will have passenger terminal buildings, embarkation and disembarkation bays, staging bays, ticketing and baggage handling facilities, and park-ride facilities.

Catching a bus is also made easier with the On-line Bus Ticketing System, an intuitive online and on-site booking and ticketing system. Departure schedules will also be displayed on large screens.

Buses will likewise be equipped with Ultra-High Frequency tag for efficient managing, tracking, and monitoring inside the terminal premises. Vehicles and passengers’ queuing, loading, and unloading will all be systematized. The terminal will also be equipped with Wi-Fi and charging points.

For added comfort, there will be air-conditioned lounges and waiting areas for passengers, as well as retail stores and food centers. Drivers will also have their own retiring room.

Closed circuit television cameras and baggage scanners will be installed and security personnel will be stationed 24/7 to ensure safety of passengers.

In order to make the terminal more vibrant, commercial spaces and offices will be occupying the premises. This will also ensure a steady flow of passengers that will be using the new terminal.

During his term, President Benigno Aquino III signed Administrative Order No. 40, establishing transport terminals in the north and south of the metropolis to decongest Edsa and restrict provincial buses from entering the major thoroughfare.

The EO stated that three terminals should be constructed—the North Interim Transport Terminal for provincial buses originating from north of Metro Manila entering via the North Luzon Expressway, MacArthur Highway, Mindanao Ave., Quirino Ave., and Commonwealth Ave.; South Interim Transport Terminal for provincial buses originating from south of Metro Manila entering via the South Luzon Expressway; and the Southwest Interim Transport for provincial buses originating from south of Metro Manila entering via Coastal Road and the Manila Cavite Expressway.

In 2014, the MMDA and the then Department of Transportation and Communications put up a temporary terminal in Alabang for 556 buses from southern Luzon which does not have proper terminals in Metro Manila and in 2013 on Coastal Road in Parañaque City for about 1,000 buses from Cavite and Batangas.

MRT3 stands to lose P236M in monthly revenues if operations stop —DOTr

More than P200 million in potential revenues will be lost should the Department of Transportation (DOTr) give in to calls to temporarily stop the operations of glitch-marred Metro Rail Transit Line 3 (MRT3).

"Our average monthly income is P236 million," Transportation Undersecretary for Rails Cesar Chavez told GMA News Online, quoting MRT3 chief finance officer Ellen Naidas.

"'Yan ang mawawala per month at 'yan din ang madadagdag sa hihingin nating subsidy sa government para pambayad ng equity rental payment sa MRTC," Chavez added.

According to Budget Secretary Benjamin Diokno, MRT3's earnings go to an escrow account intended for payment of government obligations under the Build-Lease-Transfer agreement.

The government has been paying the Metro Rail Transit Corporation (MRTC) an average P2.7 billion per year in equity rental payments under the Build-Lease-Transfer (BLT) agreement signed in 1997.

Under the 25-year BLT agreement, the government is in charge of the daily operations of the MRT3 while the MRTC was in charge of its construction. The government pays the private consortium return of investment in the form of equity rental payments.

This year, the government has allocated P4.8 billion in subsidy for the maintenance and operations of the MRT3.

"The average government subsidy per year is P5 billion," Diokno said.

After a train car detached from the rest of a train running between Buendia and Ayala stations last week, Senator Grace Poe suggested the temporary shutdown the operations of the MRT3 to ensure its safety for its 500,000 daily ridership.

The option to stop the operations of the light railway transit is still being seriously considered by the DOTr.

Apart from the thousands of commuters riding the MRT system, the DOTr is also considering the financial implications should it stop its operations.

"Any decision on MRT3 will primarily be driven by passengers' safety and convenience. Financial considerations are secondary compared to these," Transportation Assistant Secretary and spokesperson Leah Quiambao said. — BM, GMA News

Duterte resists calls for Tugade's resignation

President Rodrigo Duterte on Tuesday said he would not heed the calls for the resignation of Transportation Arthur Tugade amid the worsening situation of the Metro Rail Transit Line 3 (MRT3).

Duterte told reporters that he still trusts Tugade to fix the problems in his department.

"I will not do that. I have full trust in Tugade, that he can correct the mistakes there and fix it. I would be resisting the call, if you want to put it in another, I will decline the request," he said after meeting delegates of the League of Cities of the Philippines.

"You know the problems they come and go they crop up every day of anything. And you must also remember, is it a cliche or colloquial Murphy's Law, if anything can go wrong it will go wrong. And it can happen every day to anybody," he added.

Duterte on Saturday apologized over the recent MRT3 glitch.

Presidential spokesperson Harry Roque, meanwhile, assured the public that Tugade has plans to revamp the management of the MRT3. — BAP, GMA News

Unsolicited MRT3 rehab proposal to get Original Proponent Status

The Department of Transportation (DOTr) has granted Original Proponent Status to the proponent of an Unsolicited Proposal for the rehabilitation, operations, and maintenance of  Metro Rail Transit (MRT)3.

Malacañang disclosed this  November 20 as part of  Presidential Spokespman Harry Roque’s statement supporting DOTr Secretary Arthur Tugade amid calls for the latter’s resignation over the railway system’s problems.

The DOTr is currently pursuing multiple options for getting a competent, qualified, and experienced maintenance service provider for the MRT-3 in the short- to medium-term.

The railway serves 500,000 riders on a daily basis but its problems have been accumulating over decades.

The government expects the unsolicited proposal for rehabilitating and maintaining the railway line can solve the historical fragmented approach of running MRT-3 (separate owner, different maintenance provider, and different operator).

Once implemented, DOTr expects the unsolicited proposal to restore MRT-3’s reliability and double its capacity in the medium- to long-term.

The DOTr has terminated the contract of Busan Universal Rail, Inc. (BURI), the system’s maintenance contractor, citing poor performance and inefficiency, among others.

The department has also filed charges against officials responsible for the current state of the MRT-3 system.

On an operational level, the entire Philippines railway sector — DOTr, MRT-3, LRTA, PNR — have been called on to form the MRT-3’s Maintenance Transition Team (MTT) upon BURI’s contract termination.

Since the team took over, fewer incidences of unloading have been recorded and more train sets have been rolled out during peak hours.

Secretary Tugade’s resignation will not solve the problem says Roque.

“He  enjoys the full trust and confidence of the President,” the spokesman confirmed. “The President has said he will back up Secretary Tugade in whatever he may need to effect immediate reform to the MRT.”

President Duterte is not indifferent to the suffering of commuters and that will carry his brand of political will to improve the country’s public transportation system, according to Roque.

“With the President assuming that he will be responsible for the MRT, let us give the President the opportunity to rectify the many problems that his administration inherited from the past. We will show the same political will that the President has shown in his fight against illegal drugs, in his fight against corruption, in bringing this vital service of transportation to the people as well.”

While the ills of the MRT-3 system are the result of cumulative errors in policy and operational decisions made across previous administrations,  finger-pointing is not the practice of the Duterte administration, he stressed.

However, the past administration designated BURI as the MRT 3 maintenance provider and the present administration cannot just void the contract overnight, he added.

https://business.mb.com.ph/2017/11/21/unsolicited-mrt3-rehab-proposal-to-get-original-proponent-status/

MRTC ready to get back Sumitomo as MRT 3 maintenance provider

Sumitomo Corp., the Japanese company that designed, built, and maintained the MRT-3 System for 12 years, is willing to return as the maintenance contractor of the MRT if contracted by MRT Corp.

“Sumitomo has confirmed its willingness to return as the maintenance contractor of MRTC if we hire them,” Frederick Parayno, President of MRT Corp. said in an interview.

By virtue of the Build-Lease-Transfer Agreement between the Philippine government and MRT Corp., it is the right of MRT Corp. to choose and hire the maintenance contractor for the MRT-3 System, as it is in their greater interest as owners of the asset that is the MRT.

The responsibility of hiring the maintenance contractor was acquired by the Department of Transportation during the term of former Secretary Joseph Emilio Abaya when it refused to renew the contract of Sumitomo and instead hired without bidding and through a negotiated contract PH Trams.

MRT Corp. has already officially written DOTr that it has an offer for a fast track rehabilitation proposal that will be undertaken by Sumitomo Corp.

The proposal will see the owners infuse US $150 million to rehabilitate the MRT.

This will include the full rehabilitation and maintenance of the trains, in order to restore the system to accommodate over 550,000 passengers per day and allow effective capacity expansion.

The rehabilitation will include the purchase of spare parts, with a value of at least 50 million US dollars.

MRTC would also hire at least 100 engineers for a full inspection of the MRT to be completed within 30 days, in preparation for the fast-track rehabilitation of the MRT which private sector experts estimate can be achieved within a period of 26 months.

MRTC has discussed at length with Sumitomo Corp. the possible rehabilitation of the MRT-3 System. The discussions have concluded that the rehabilitation will include a complete overhaul of all 73 cars of the entire MRT-3 line; rehabilitation of all systems including the MRT-3’s power system and signalling system; replacement of broken rails; maintenance for two years while undergoing rehabilitation; rehabilitation of station facilities such as elevators and escalators; and the purchase of R50 million US$ worth of spare parts.

In its letter to President Rodrigo Duterte, MRTC even invited DOTr to join them in their meetings with Sumitomo Corp.