Friday, November 24, 2017

DOTr Usec Chavez resigns over MRT woes

Citing delicadeza, Department of Transportation (DOTr) Undersecretary for Railways Cesar Chavez tendered his irrevocable resignation yesterday morning as he took full responsibility for the Metro Rail Transit-3 (MRT-3) incidents last week rather than put the blame on anybody else or the past administration.

DOTr Secretary Arthur Tugade, who is being asked to quit because of the MRT-3, traffic and infrastructure problems of the country, said he was surprised by the sudden resignation of Chavez and, contrary to the insinuation of others, he did not “cause or ask” for his resignation.

Chavez himself said he was not being used as the sacrificial lamb in the face of public criticism after the decoupling of train cars on Nov. 16 and a freak accident that made a commuter lose her arm on Nov. 14.

Chavez’s resignation also came as the DOTr filed charges against nine Cabinet secretaries of the Aquino administration, other officials and individuals for alleged plunder and graft for their supposed roles in anomalous transactions relating to the maintenance service contracts of the MRT-3.

In his resignation letter addressed to President Duterte dated yesterday, Chavez said “a simple sense of delicadeza, which I have adhered to throughout my professional life, gives me no choice but to resign from my said position.”

“It is also my intent and hope that my resignation provides opportunity for the appointment of (a) person better qualified to perform the duties and responsibilities of the subject office,” Chavez read from his resignation letter as he held back tears. 

He also thanked Duterte for entrusting him with the job and expressed his wish for the MRT-3 problems to be resolved properly and with dispatch.

Chavez said he immediately informed Senate President Aquilino Pimentel III, who recommended him to the President, of his intention to resign just a few hours after the decoupling of the train cars last week, but was stopped from doing so as it was not yet the right time.

But Chavez said he has been in office for more than a year now, as he was appointed on Oct.18 last year and that “we cannot always blame the past administration.”

“…this is our responsibility now. In our view, this is my responsibility, particularly as undersecretary for railways,” Chavez told reporters in a press conference at the MRT-3’s depot in Quezon City. 

Chavez stressed nobody from the DOTr or Malacañang pressured him to step down from his post. 

Despite his resignation, Chavez claimed that the MRT Transition Team (MTT) managed to improve the services of the train system a few days after they terminated the MRT-3’s contract with its service provider Busan Universal Rail Inc. (BURI) and that the latest incidents were “unfortunate.”

He said the improvements would have been noticeable if the incidents did not take place.

He noted that the MRT-3 had experienced only one to two unloading incidents when they temporarily took over the maintenance work of the train system compared to BURI, which recorded more than five per day.     

“We were just really hit by the decoupling of train cars and that’s where we were judged by the public and the commuters and that is just right, we take responsibility for the inconvenience,” Chavez said.

Chavez, who was the former deputy administrator of the Light Rail Transit-1 (LRT-1) during the Arroyo administration and also a former official of the Metropolitan Manila Development Authority (MMDA), said he learned about the importance of spare parts and good management of the train system during his stint at the LRT-1 and MRT-3.

“Kung hindi nakakabilli ng spare parts, nagkaka-aberya; kung kulang performance ng management, nagkakaproblema (If spare parts are not purchased, glitches arise; if management performance is lacking, problems occur),” he said.

Chavez, who was also a former newsman of radio dzRH, said he can go back to being a university president after his resignation.

Although he did not recommend anyone to take his place, Chavez said many best and brightest Filipino experts can work with the MRT-3, including train expert Rene Santiago who worked in the railways during the time of former presidents Ferdinand Marcos and Fidel Ramos.

Santiago, a railway consultant and a former chief operating officer of the North Luzon Railway Corp., thanked Chavez for complimenting his expertise, but said that he would not accept any offer as he has “no plans to commit harakiri” or suicide.

“…I am not crazy…I don’t want to commit harakiri and I don’t want to shoulder that problem. That’s Tugade’s problem,” Santiago told The STAR.

Santiago said he had told Chavez that the MRT-3 is bound to fail and it is a difficult job before the resigned official accepted the DOTr post.

But he said he does not want to blame Chavez for the problems hounding MRT-3 operations.

“He tried his best to do it. It’s a very difficult job, it’s bound to fail. Kawawa naman siya (It’s a pity). That’s why I wanted to talk to him. That’s a battle he will not be able to win,” he added. 

Out of the way

Meanwhile, BURI’s lawyer Maricris Pahate said she was surprised by the resignation of Chavez, but said that they had a chance to explain their side with Tugade now that Chavez is out of the picture.

“Before we have a problem with him, so we are assuming that whatever he is advising that’s all Secretary Tugade knows as well. Hopefully, we can meet with him to clarify our status with the MRT-3,” Pahate told The STAR. 

“This mess can hopefully still be fixed and we can work together with MRT-3,” she added.

Pahate said their “woes” started when Chavez was appointed undersecretary for railways.

Reacting to Chavez’s claims that the MRT-3 has improved after they terminated the contract with BURI, Pahate said she did not see any improvement with the train system, rather it has only worsened under the MTT’s watch.

She added Chavez also did not provide solutions to the MRT-3 problems, unlike when they were still holding the maintenance work of the train system.

After Chavez’s resignation, Pahate said they will watch out for the next move of the DOTr as it might resort to an emergency procurement contract, which might worsen the MRT-3 problem, especially that there is still unfinished contract with the train system.

BURI had bagged the three-year P3.8-billion maintenance contract with the MRT-3 during the administration of former Department of Transportation and Communications (DOTC) secretary Joseph Abaya.

Tugade said he was surprised by the very sudden turn of events, noting that he was even working with Chavez the day before.

“We have been doing plans and strategies together, up and until yesterday. Even by texts as I was on sickbay,“ Tugade said.

Lawmakers lamented the decision of Chavez while Bagong Alyansang Makabayan secretary-general Renato Reyes said Chavez has been consistent in exposing the anomalies in various MRT contracts.

Pimentel said the government lost a competent and dedicated servant who also happened to be a member of the PDP-Laban party.

Pimentel, the president of PDP-Laban, revealed that it was he who recommended Chavez to be part of the Duterte government.

Pimentel speculated Chavez was probably disheartened by the numerous cases filed against him when he was just doing his job as the undersecretary responsible for the operations of railways, including the MRT-3.

Sen. Grace Poe, chair of the Senate committee on public services, said she respects the decision of Chavez to resign in light of the continued problems of the MRT-3.

“I admire his sense of delicadeza although I doubt that that is the only reason that prompted him to resign. He seemed to be one of the DOTr officials who was determined to fully address all the issues plaguing the MRT. I recall he was instrumental in unearthing the persons involved in anomalies that caused these issues,” Poe said.

“However, it is time to evaluate the actions and the leadership of the DOTr as a whole in connection with how issues hounding the MRT have been addressed. These issues should be properly and expeditiously resolved despite Usec. Chavez’s resignation and especially considering the commuting horrors our people have to go through everyday,” she added.

Sen. Francis Pangilinan questioned the timing and motivation for the resignation of Chavez.

Pangilinan said Chavez resigned shortly after he caused the cancellation of the maintenance contract of BURI for the MRT-3. – Catherine Talavera, Marvin Sy, Alexis Romero, Rhodina Villanueva

http://www.philstar.com/headlines/2017/11/24/1761881/dotr-usec-chavez-resigns-over-mrt-woes

Investments in infrastructure: Road to development

“Infrastructure positively affects economic growth. Depending on the type of infrastructure, the time or period, the region or location, its effect varies from negligible to moderate,” said Dr. Epictetus E. Patalinghug in his special study “Infrastructure and Economic Growth: The Philippine Experience.”

Patalinghug emphasized that the country’s economic infrastructure gap poses a major stumbling block to sustainable growth. The Philippines’ quality of infrastructure lags behind its ASEAN counterparts due to decades of underinvestment and inefficiency in resource utilization.

Infrastructure inadequacy
Data from The Global Competitiveness Report 2016-2017 of World Economic Forum show that one of the most problematic factors in affecting business and investments is the inadequate supply of infrastructure. This infrastructure inadequacy has increased to 17.8 in 2017 compared to previous year’s score of 17.0 as reflected in The Global Competitiveness Report 2015-2016.

Enabling policy, environment
In order to set the tone for increased investments, President Rodrigo Duterte promised to implement a golden age of infrastructure through its “Build, Build, Build!” infrastructure program by allocating P8.2 trillion infrastructure budget over the next six years. Based on the data from the Department of Budget and Management, the infrastructure outlays for 2015, 2016 and 2017 indicates that the infrastructure budget increased from P575.67 billion in 2015 to P860.65 billion in 2017. In terms of percentage of infrastructure spending as a proportion of GDP, it increased from 4.3 percent in 2015 to 5.4 percent in 2017.

Official development assistance: From pledges to real investments

Despite higher budget allocation, the government should prioritize increasing its capability to create and implement the projected pipeline of infrastructure projects on time.

As one possible solution to this problem, Duterte has encouraged Chinese and Japanese investors to invest in specific projects in the country.

Recently, the Japanese International Cooperation Agency (JICA) has expressed its contribution by way of financial assistance to the Philippines’ sustainable economic growth through infrastructure development in order to accommodate the growing demand for quality mass transport.

Some of the infrastructure projects to be financed by the Japanese government include the Metro Manila Subway Project Phase 1, Cavite Industrial Area Flood Management Project, Circumferential Road 3 Missing Link Project, Dalton Pass East Alignment Alternative Road Project, Malitubog-Maridagao Irrigation Project Phase 2, Malolos-Clark Railway Project, Arterial Road Bypass Project-Phase 3, Pasig-Marikina Channel Improvement Project Phase 4 and Road Network Development Project in Conflict-Affected Areas in Mindanao.

Safe, reliable and efficient transportation to the commuters’ convenience

Quality mass transportation and increased mobility, serving as drivers of economic growth, are the ultimate goals of these infrastructure projects.

The government’s capacity to construct these projects as planned should also be complemented by the private sector’s comparative advantage in managing, operating and marketing the project.

Moving forward, lessons from the MRT 3’s substandard performance — frequent train breakdowns, accidents, glitches, poor maintenance — and the termination of the anomalous maintenance contract with Busan Universal Rail Incorporated should be seen as an opportunity for the government to broaden its perspective that would hopefully lead to an improvement and innovation in public service.

With the worsening traffic situation in Metro Manila due to population growth and urbanization, government will need to speed up triple-time to catch-up with the country’s growing demand for reliable and efficient mass transportation. For the thousands of commuters in the metro, the shift from road-based to rail-based transport will work to their comfort and convenience. At the end of the day, the challenge for government is to act swiftly so that the welfare and interest of the riding public will not be prejudiced.
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Lawyer Hannah Viola is a convenor and legal counsel of CitizenWatch Philippines and a fellow of the Stratbase ADR Institute, a partner of Philstar.com.

DOTr still considering Sumitomo as MRT maintenance provider

The Department of Transportation (DOTr) has clarified that Sumitomo Corporation is still being considered as the maintenance provider for the Metro Rail Transit Line 3 (MRT-3) system.

This as the DOTr is currently involved in discussions with potential and qualified partners that can provide the maintenance requirements of the MRT-3 including Sumitomo Corporation and its technical partner Mitsubishi Heavy Industries.

“The DOTr has not been advised by Sumitomo Corporation that they have declined to come back as the maintenance service provider for MRT-3. On the contrary, high level discussions are ongoing with potential qualified and experienced partners who can provide the maintenance requirements of MRT-3, including Sumitomo Corporation and its technical partner, Mitsubishi Heavy Industries, to MRT-3,” the department said in a press statement Thursday.

“Finding an interim maintenance service provider for MRT-3 in the medium-term, and an operations and maintenance concessionaire in the long-term, are some of the measures that the DOTr is taking to restore MRT-3’s operational reliability for its 500,000 daily riders,” it added.

The DOTr issued the statement after Transportation Assistant Secretary Elvira Medina said in a television interview  that Sumitomo has declined the offer of the government to return as the maintenance service provider of the railway system.

The Transportation Department has terminated its maintenance contract with Busan Universal Rail Inc. (BURI) last November 6 due to various issues such as poor performance, failure to ensure availability of required number of trains, failure to implement a feasible procurement plan for spare parts and noncompliance with the requirements of a complete and up-to-date Computerized Management System.

DOTr Secretary Arthur Tugade has created a new Bids and Awards Committee (BAC) for the Maintenance Transition Team (MTT) that is temporarily taking over the MRT operations after the maintenance contract with Busan Universal Rail Inc. (BURI) was terminated earlier this month.

It will procure some critical rehabilitation services and spare parts including, but not limited to, signaling system to cover parts and services; general overhaul of 38 light rail vehicles (LRVs), airconditioned units for passenger riding comfort and total rail replacement.

The department also plans to acquire a technically and financially capable maintenance service provider within three to six months from the government takeover.

The DOTr is looking into a maintenance service contract for 2-3 years from a highly reputable maintenance service provider with a proven track record. Aerol John Pateña/ PNA-northboundasia.com