Philippines, Japan on track for new MRT deal

The Philippine and Japanese governments are on track to ink a deal for a new maintenance contract for the Metro Rail Transit-3 (MRT-3).

In a statement, the Department of Transportation (DoTr) said the Philippine and Japanese governments have exchanged notes verbale regarding official development assistance (ODA). The arrangement with Japan involves obtaining ODA financing under the Japan International Cooperation Agency’s (JICA) Special Terms for Economic Partnership (STEP).

The DoTr said that with projects under Japanese ODA, terms include 0.10% interest per year, with a 40-year payment period, and 12 years grace period for the principal.

JICA will then conduct from this month until next month a feasibility study, which will refine the project’s scope of works, followed by relevant government approval. Signing of the loan agreement and procurement of the rehabilitation and maintenance provider will follow in March to April, and by the second quarter, the Japanese provider will start its mobilization.

The Japanese government will nominate a rehabilitation provider. The DoTr said that Japan “has given assurances that it will nominate a provider that is highly qualified, and has a robust and reliable track record.”

The DoTr said in November that it was in high-level discussions with the Japanese government “to pave the way for DoTr’s direct engagement” of previous MRT maintenance provider Sumitomo Corp. and its technical partner Mitsubishi Heavy Industries, under a Government to Government (G2G) Official Development Assistance (ODA) platform.

The agency said that the joint venture of Sumitomo and Mitsubishi Heavy is being considered due to their previous experience of designing and maintaining the MRT.

DoTr in November terminated its contract with Busan Universal Rail, Inc. (BURI), citing BURI’s alleged failure to ensure efficient and available trains and failure to procure the proper spare parts.

The government is also currently evaluating the unsolicited proposal of Metro Pacific Investments Corp. (MPIC) for the rehabilitation and takeover of the MRT system. MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the investment management and holding company of Indonesia’s Salim family.

MPIC’s other units are Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Japan to provide aid for MRT-3 rehab and maintenance

Japan has committed to provide financial assistance for the rehabilitation and maintenance of the Metro Rail Transit Line 3 (MRT-3).

This follows the exchange of note verbales between the Philippines and Japan which involves obtaining Official Development Assistance (ODA) financing under Japan International Cooperation  Agency’s (JICA) Special Terms for Economic Partnership.

“These developments show that we are wasting no time and effort in rehabilitating and restoring the reliability and capacity of MRT-3. This year, we will make significant improvements to MRT-3 and that is our commitment to the Filipino commuters,” Department of Transportation (DOTr) OIC Undersecretary for Railways Timothy John Batan said in a statement Tuesday.

JICA will conduct its feasibility study in January to February to assess what needs to be fixed in the MRT system.

Once this is completed, the signing of the loan agreement and procurement of the rehabilitation and maintenance provider will follow in March to April with the mobilization of the Japanese provider expected within the second quarter of this year.

Japan assured that it will nominate a provider that is highly qualified and has a strong and reliable track record.

The DOTr terminated last November its contract with Busan Universal Rail Inc. (BURI) as the MRT-3’s maintenance provider citing its failure to perform its maintenance obligations and procure spare parts.

The Japan ODA for the MRT-3 Rehabilitation and Maintenance Project is part of the DOTr’s strategies to improve the operations of the railway system which involves promoting accountability with the termination of BURI; ensuring continued service delivery by establishing the Maintenance Transition Team (MTT) and purchasing needed spare parts; contracting a rehabilitation and maintenance service provider together with an ODA partner and putting in place a long term maintenance and operator provider for MRT 3.

DOTr promises better MRT3 services by 2nd quarter of 2018

The MRT3 management says there will be no increase in fares due to the tax reform law until the railway system's services have been improved

The Department of Transportation (DOTr) has promised to improve the Metro Rail Transit Line 3 (MRT3) services by the second quarter of 2018.

In a press briefing on Wednesday, January 10, DOTr OIC Undersecretary TJ Batan said spare parts needed to rehabilitate trains are expected to arrive in 30 to 60 days, while others will arrive with a lead time of at most 6 months.

He added that procurement of spare parts was based on the top causes of unloading incidents. Based on MRT3 data, problems with the traction motor, signaling system, and door failure account for most of the incidents recorded in 2017.

In the past week, Batan said, they were running on 13 to 14 trains per day – below the agency’s set minimum of 15 working trains per day. (READ: MRT woes: How often do they happen?)

"Right now, we still lack spare parts. We fix some of the trains, but there will be others that get broken, that’s why we average around 13 to 14 trains. At least we’re trying to hit the minimum at 15. We cannot allow a train to run that is not safe," Batan said in Filipino.

During the Holy Week, MRT3 will suspend operations and implement general maintenance services on their trains from March 28 to 31. (READ: Surviving MRT3: Worst train fails in 2017)

MRT3 Director for Operations Mike Capati said this will give way to work on the train cars and install the spare parts needed to improve their services for the rest of the year.

Less breakdowns

According to the MRT3 management, there were less unloading incidents after they terminated the contract with Busan Universal Rail Incorporated (BURI) as maintenance provider in November.

Based on the MRT data, there were 39 breakdowns per month under BURI while there were 24 incidents under the Maintenance Transition Team. The MRT3 explained that the averages were calculated factoring in other variables by their engineers.

Commuter woes

Batan also addressed the issue of overloading in MRT3.

According to him, the trains are designed to fit in 1,182 people or roughly 8 persons per square-meter. "That’s a high capacity. Our trains can handle packed people inside the MRT," he said.

The undersecretary also said that, after the upgrade, they are aiming to deploy 20 trains with 4 cars per day, running 60 kilometers per hour with a 3 minute headway in between, to address long lines.

In the meantime, Batan said that they are coordinating with other transport agencies to deploy buses that will help augment the long lines at the MRT3.

When asked how fares will be affected by the recently implemented tax reform law, Batan said that they will not increase fares until services of the railway system has been improved.

"Our commitment is that we will not increase fares until our commuters have not experienced a comfortable ride," he said.

The MRT3 runs from North Avenue Station in Quezon City to Taft Avenue Station in Pasay City. In 2016, the railway system had 10.27 million passengers, up from the 9.85 million passengers recorded in 2015.

DOTr, DPWH led ground-breaking ceremony of South East Metro Manila Expressway project

The Department of Transportation - Toll Regulatory Board (DOTr-TRB), in partnership with the Department of Public Works and Highway (DPWH), on Monday (Jan. 8) led the ground breaking of the South East Metro Manila Expressway Project (SEMME).

DOTr Secretary Arthur Tugade, DPWH Secretary Mark Villar, BCDA President & CEO Vince Dizon, Taguig City Mayor Lani Cayetano, and other local government unit officials led the ground breaking ceremony at the C-5 service road in Taguig.

The South East Metro Manila Expressway, is estimated to cost P45 billion and targeted for completion by 2020.

The 34-kilometer expressway will link SMC’s Skyway Stage 1 in the Food Terminal Inc. complex in Taguig City to the Batasan complex in Quezon City.

According to the DOTr, the expressway will eventually connect to the North Luzon Expressway (NLEx) via Balagtas.

Aside from decongesting roads in Manila and Quezon City, particularly major road networks such as EDSA, C-5, Ortigas Avenue, and its extension, the Southeast Metro Manila Expressway will also provide commuters and motorists fast and direct access by South and Southeast, as well as Metro Manila inter-city travelers, to major international and domestic airports.

When completed, travel time of motorists from Bicutan, Taguig City to Batasan, Quezon City will be reduced to only 35 minutes.

The project, which is part of the Metro Manila C-6 Expressway project, will have six lanes, both for elevated and at-grade sections.

The C-6 expressway project will have a second phase involving a 24.28-kilometer expressway that would provide links to San Mateo, Rizal and City of San Jose Del Monte, Bulacan. (DOTr/EPC/SDL/PIA-NCR)    

Private sector to complete due diligence on MRT3 takeover

The group of Ayala Corp. (AC) and Metro Pacific Investments Corp. (MPIC) is scheduled to finish a due diligence on the proposal to take over the operations of Metro Rail Transit Line 3, the Department of Transportation said Wednesday.

“End of January ‘yung technical due diligence,” Transportation Assistant Secretary for Railways Timothy John Batan said in a press briefing in Quezon City.

The AC and MPIC submitted on July 14, 201 an unsolicited proposal to take over the MRT3 operations.

In September, Transportation Secretary Arthur Tugade said the group has been given an original proponent status which will be subjected to a Swiss Challenge for other companies to make competing offers and the original proponent the right to match the challenge.

Batan said the private sector must first finish the due diligence since the government will not be giving any warranty.

“It’s the first time that we adopted a ‘No warranty, as is, where is’, structure,” he said.

Once the due diligence is completed, the DOTr will discuss the project with the National Economic and Development Authority which has the final say on the matter.

“Our current trajectory is to endorse after that happens kasi the condition of the system will affect their capex (capital expenditure) assumptions, will affect a lot of components of their financial mode,” Batan said.

AC and MPIC operate the Light Rail Transit Line 1 through the Light Rail Manila Corp. (LRMC).

LRMC is a consortium of MPIC’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp., and Macquarie Infrastructure Holdings (Philippines) PTE Ltd.

If the group bags the project, it would likely create another special purpose vehicle with a similar ownership structure as LRMC. —VDS, GMA News

CONSTRUCTION OF SOUTH EAST METRO MANILA EXPRESSWAY PROJECT TO START IN APRIL 2018

Traveling from Quezon City to Taguig in just 35 minutes will soon become a reality with the construction of the Southeast Metro Manila Expressway (SEMME) finally underway.

Earlier today, the Department of Transportation - Toll Regulatory Board (DOTr-TRB), in partnership with the Department of Public Works and Highways (DPWH), led the groundbreaking and time capsule laying for the first phase of the SEMME or the C-6 Expressway Project. Construction is targeted to start in April 2018, however, Transportation Secretary Arthur Tugade instructed concessionaire San Miguel Corp. to start the construction sooner.

“We hope to start construction in April 2018, but Secretary Tugade wants us to start earlier. What we can say is that we will do our best to make this possible at the soonest possible time,” SMC Engineer Norberto Conti said during the briefing of the SEMME project.

The transport chief regarded the C-6 Expressway project as a project that was made possible with the full cooperation and support of concerned national and local government agencies and the private sector.

“Ngayon, nagpupulong tayo para maisakatuparan ang pangarap ng taumbayan na mapasimulan itong C-6 expressway project. Ang mensahe natin ngayong umaga — nagawa ang proyektong ito dahil united at buo ang gabinete ng Pangulo,” Tugade said.

The SEMME project is a 34.024-kilometer, six-lane, combined elevated and at-grade expressway with two directional traffic flow. It will start in the south with a connection to the existing Skyway Stage 1 in FTI, Taguig City, and would terminate in Batasan Complex in Quezon City. It will eventually connect to the North Luzon Expressway via Balagtas.

Aside from decongesting roads in Manila and Quezon City, particularly major road networks such as EDSA, C-5, Ortigas Avenue, and its extension, SEMME shall likewise provide commuters and motorists fast and direct access by South and Southeast, as well as Metro Manila inter-city travelers, to major international and domestic airports.

Once completed, travel time from Bicutan, Taguig to Batasan, Quezon City will be reduced to only 35 minutes.

Phase 1 of the project is targeted to be completed in 2020.

Department of Public Works and Highway (DPWH) Secretary Mark Villar, meanwhile, said the Build,Build,Build team “will work 24/7 to make the project possible.”

“Abangan ninyo po ang sunod-sunod na ground-breaking ceremonies this year. These are infrastructure projects that will lead to the accomplishment of the Build, Build, Build vision, soon,” Villar said. 

For her part, Taguig City Mayor Lani Cayetano lauded the efforts of the Build,Build,Build team in making the long-awaited C-6 project a reality.

“It appears our hope and aspirations are now a tangible reality. I am excited for our fellow Filipinos who will soon take advantage of this expressway project that will surely boost connectivity and mobility here in Metro Manila,” the Taguig local chief executive said. 

The groundbreaking ceremony was also attended by Bases Conversion and Development Authority (BCDA) President and CEO Vince Dizon, and Antipolo City Mayor Jun Ynares.

DOTr is optimistic Japan to consider Sumitomo as MRT3 maintenance provider

The Department of Transportation is optimistic that Japan will consider Sumitomo Corp. in the role of maintenance provider of the Metro Rail Transit Line 3 (MRT3) as part of the terms of assistance for the rehabilitation of the mass rail system.

“We expect Japan to consider strongly Sumitomo because of the technical continuity aspect,” Transportation Assistant Secretary Timothy John Batan said in a press conference in Quezon City.

The Philippines is currently in talks with the Government of Japan which has expressed its intent to provide assistance in the rehabilitation of MRT3.

The Department of Transportation (DOTr) said last week the Japanese government has sent a note verbale to the Philippines, bringing negotiations one step closer to fruition.

The Philippines issued a diplomatic note to the Japanese government on December 28.

The note contains the conditions and both governments must first agree to the terms for the deal to push through. — VDS, GMA News

Gov't touts fewer MRT-3 glitches after taking over upkeep

It still suffers from daily breakdowns, but the MRT-3 has suffered fewer glitches in the last 2 months after the government took over its maintenance from a service provider, officials said Wednesday.

Transportation officials reiterated Wednesday that the MRT-3 is still safe to ride despite persistent glitches, saying the EDSA railway's operations have improved since government took charge of its upkeep.

The Department of Transportation terminated the maintenance contract of Filipino-Korean consortium Busan Universal Rail Inc. (BURI) in November last year, saying its poor performance led to chronic service interruptions at the capital's main railway.

Under BURI, glitches forced the unloading of passengers at an average of 39 times per month. This went down to a monthly average of 24 unloading incidents under the watch of state engineers, MRT maintenance head Mike Capati told reporters.

Passenger unloading peaked at 55 incidents in September 2017 and dropped to its lowest at 23 incidents in December, he added.

The government's upkeep of the MRT, however, was marred by a freak accident where a female passenger's arm was severed in early November, and the decoupling of 2 trains days later.

This new year, the MRT has unloaded passengers 8 times so far due to various technical problems.

MRT STILL SAFE

Despite these hiccups, the railway is still safe to ride, Transportation Undersecretary for Rails Timothy John Batan said.

"Sinisigurado po namin na ang pagpapatakbo po namin ng MRT ay safe (We make sure that our operation of the MRT is safe)," Batan said.

He said trains undergo daily checks and their speed has been reduced to 40 kilometers per hour from 60 kph.

"It would be a nightmare for us here at MRT-3 to even think of stopping our operation even for 1 day, considering that there are so many kababayan natin who depend on MRT-3 for their livelihood," added MRT general manager Rody Garcia.

The government is also in talks with Japan to bring back Sumitomo Corp as maintenance provider for the train system that ferries half a million passengers daily, said Batan. -- With reports from Joyce Balancio and Jacque Manabat, ABS-CBN News

Pres. Duterte to certify anew other tax reform packages as urgent – DOF

The Duterte administration targets to pass the 2nd tax reform package or the Corporate Income Tax Reform and Fiscal Incentives.

Package three is also set to be passed within the year.

Finance Secretary Sonny Dominguez said that if Congress will pass the bill as law, this will fund the 25 percent of the 8-trillion peso target budget for the “Build, Build, Build” infrastructure program of the government.

“We would like to raise more or less something in the area of two trillion pesos for this, around 25 percent of the total,” said the finance secretary.

The official is confident that President Rodrigo Duterte will certify the bills as urgent measures.

Dominguez added that the effect of these tax reform packages on inflation will only be less than one percent.

The official also insisted that the tax due to taxpayers will not be very high.

“Because the other tax packages are not so much increasing taxes. It is just making it fair,” said the finance secretary.

If the Congress fails to approve the said bills, the target three percent of GDP deficit will not be maintained and the government must resort to cut its spending. — Rosalie Coz | UNTV News and Rescue