MRT Investigation by the Senate

MRTC and the DOTC entered into a build-lease-transfer (BLT) agreement in 1997.

The BLT Agreement was signed by DOTC and Metro Rail on August 8, 1997 and amended on October 16, 1997. It constitutes a restatement of similar agreements dating back to the first such contract, which was signed on November 7, 1991. It was restated on April 22, 1992, and the restated agreement was supplemented on May 6, 1993, and amended on July 28, 1994 and May 1996. Another restatement was signed on October 3, 1996. All the terms in those prior agreements were superseded by the provisions of the BLT Agreement.

In the agreement, to construct and maintain the MRT-3, government is to pay MRTC equity rental fees and MRTC is assured a net return-on-investment (ROI) of 15%, net of taxes and net of loan repayments. To sum up the government did not pay its rent promptly.

MRTC filed an arbitration suit against the Philippines in Singapore because of the delayed rental payments. Another case was filed against the government for awarding a P3.8-billion ($86.7 million) contract to Chinese company CNR Dalian Locomotive & Rolling Stock Company of China to supply of 48 new light rail vehicles for MRT 3.

As time passes by, the train system starts to face different problems. Like non-functioning elevators, non-functioning escalators, non-functioning ticket dispensers, obsolete signalling system and derailing of an MRT3 train happened on August 13 causing to injure about 38 people.

Now that many things are causing suffering to the people, the Senate must put in more effort in probing the whole system of the MRT.

Senators Sonny Angara, Nancy Binay, Bam Aquino and Aqulino Pimentel III initiated the investigation.

Senator Grace Poe took the MRT as an ordinary passenger and DOTC Sec. Abaya also took the MRT but he was with his full security.

Abaya also took the MRT but didn't show any sincerity at all.

Senate probes MRT woes.

Senate Bill 2266 filed by Senator Grace Poe “National Transportation Safety Board Act" seeks to establish a National Transportation Safety Board that will investigate and report on various modes of travel.

Senate Resolution 839 filed by Senator Sonny Angara aims to investigate in aid of legislation the MRT-3 incident last month and re-examine the mass-transport system for planning.

Senate Resolutions 840 and 841, filed by Senators Nancy Binay and Bam Aquino, respectively, will inquire into the increasing incidents of train malfunction arising from the supposedly inefficient operations and inadequate maintenance of MRT3.

Remember Sec. Abaya claims that it was still safe to ride in MRT despite of the mishaps. And there were reports that he was covering up someone's fault during the train accident last month. Instead of showing concern to the public, Abaya is insisting what he believes and do not listen to the sympathy of public. Maybe its time he should also ride the MRT as an ordinary commuter during a rush hour.

It is interesting what he will say and feel about it.