It must be fare

"It must be made." Department of Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya said. 

This actuated open disturbance in Metro Manila. He incorporated that, "it was time to make the best choice that is, to charge affirmations closer to those on ventilated transports [along Edsa]." 

He even shielded this move saying that the extended confirmations would realize stamped upgrades in both travel organizations. 

While the Aquino association is from every angle settled in turning a deaf ear to the people's racket to postpone the charge move until the MRT and LRT show essential improvements. 

Individuals when all is said in done tumult became unlimited as Malacanang Palace showed its haughtiness and relentlessness to the people's appeals. 

Just as to rub salt on another wound, the association is right now looking to move the commitment of fiscally supporting a shabby mass transport system in the capital, in the wake of pulling out its present sponsorships to the travel systems. 

Since the present association decided to execute an affirmation increase for MRT and LRT – two of the huge modes of transportation for the country's capital. Reliably, these vehicle lines pass on 1.2 million explorers, notwithstanding their low cutoff points. 

The extended affirmations would be an inconvenience to individuals when all is said in done, especially those acquiring underneath minimum pay. 

With the excessive MRT and LRT rates, those people will be propelled to take jeepneys and transports, implying the "starting now hugely congested" boulevards in the metro. 

I am considering how they considered such figures over a short time. 

A few people think its just not sensible, while others even acknowledge that this is a substitute sort of "government burglary". 

Everyone knows how repulsive the organizations of both travel structures are. Both mass travel business locales are deteriorating. 

The years of negligence and trademark wear and tear have amplified the MRT's capacity past its most extreme, bringing on reliable breakdowns. 

So why are they growing the charges when people have not seen redesigns for a long time?

It must be the government’s responsibility to assure people's safety.

DOTC Secretary Abaya’s Role in the Recently Approved LRT & MRT Fare Hike

Have you ever tried riding the LRT and MRT? If you did so, you probably share the sentiments of the thousands of Filipinos who ride either transit systems to and from their workplaces or other destinations. Yes, the insanely long queues and poor services are hair-grabbing incidents at some point.

The recent fare increase for both transit systems are what’s getting into the nerves of many commuters in Manila. This is because people feel that the hike isn’t fair at all, knowing how bad their services are. But Department of Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya said, “it had to be made.”

Secretary also added that they “will also see marked improvements in our LRT and MRT services.” But this remains to be seen. I, for one, can attest to how hard it is to get a ride on the LRT and MRT. If you’re in a hurry, you might as well find another way to get there because there’s really no way you can get to your destination fast on the MRT or LRT. The long line leading up to the main train station is enough to discourage you to even try.

PNoy onthe fare increase

Last week, President Noynoy Aquino defended the increase in fares despite the fact that many sectors are opposing this move. He said he will be a willing sacrifice for such an unpopular yet overdue decision, if it means improving its services. Pres. Aquino said, “There is no perfect decision here.”

The President also added that he didn’t want to leave the issues about the LRT and MRT system behind. He said that taxes, higher fares and prices are always a bitter pill to swallow, but the impending fare increase for the rail systems just has to happen as it has been planned since 2011. He also encouraged his critiques to offer solutions to help solve the problems about the trains without resorting to a fare hike.

Senate summons Sec. Abaya

Last January 4, Senator Francis ‘Chiz’ Escudero said the Senate will summon Transportation Secretary Joseph Emilio Abaya to explain the increase in fare for the LRT 1 and 2 and MRT 3. Escudero said in his DZBB interview, “We will tackle that (fare increase) and if there is a chance, we will stop it and ask their commitment because there is no reason, financially and practically, for the fare hike.”

Escudero also questioned the timing of the fare hike, saying the management should improve its services first. Meanwhile, Senator Grace Poe backs Escudero’s proposal. She said, “Of course, we have to call the DOTC Secretary. He is the person who can answer.”

However, Abaya was a no-show at the hearing held last Wednesday due to his alleged active participation in the preparation for the Papal visit. DOTC Undersecretary Jose Lotilla said, “The secretary is right now very much involved in the preparations for the Papal visit. He had to request to be excused.”

Abaya’s absence was questioned by Bayan Muna Representative Neri Colmenares, saying that the Secretary has always been active defending the fare hike. Of all the days he can be absent, why does he have to pick the day he has to show up at the Senate for questioning?

SC’s reaction to the fare hike

When I heard that the Supreme Court ordered the Philippine government to explain their decision on the fare increase and proving its legality, I was very happy and I prayed that they would be able to stop this absurdity.

Respondents were given 10 days from receipt to send in their comments. The respondents in the petition include DOTC Sec. Joseph Emilio Abaya, LRTA Administrator Honorito Chaneco, MRT 3 Office-in-Charge Renato San Jose, the MRT Corp. and the Light Rail Manila Consortium.

However, just like Bagong Alyansang Makabayan (Bayan), which petitioned for the questioning of the fare increase, I too was disappointed that the SC are not able to issue a TRO (temporary restraining order) against the MRT and LRT increase in fare prices.

As of this writing, no TRO has been issued against DOTC Order 2014-014, which means that the fare hike for the LRT and MRT will have to remain in place, for now.

MRT Buyout and a Few Related Issues

Heading: MRT Buyout and a Few Related Issues

The Department of Transportation and Communications (DOTC) has recently approved the fare hike for Metro Rail Transit and Light Rail Transit. So despite all the complaints passengers have about insanely long queues and poor services from both transport companies, they should be prepared for higher fares starting the 4^th of January 2015. Transportation Secretary Joseph Emilio Abaya issued Department Order No 2014-014, which sets the new fares for the three major mass transport system in the country.

Abaya said, “It’s a tough decision, but it had to be made. It’s been several years since an increase was proposed. We delayed its implementation one last time until after the Christmas season. While 2015 will see increased fares, it will also see marked improvements in our LRT and MRT services.”

The DOTC’s plan to adopt a uniform distance-based fare scheme for MRT-3, LRT-1 and LRT-1 has been decided in line with the government’s Medium-Term Philippine Development Plan.

Abaya added, “It is envisioned that this fare scheme will result in an equitable distribution of government funds currently dedicated to subsidizing the operations of the above rail lines in Metro Manila to much-needed development projects and relief operations in other parts of Luzon, the Visayas and Mindanao.”

In May 2011, the LRTA board approved a formula that will fix a rate of Php11 base fare, plus Php1 per kilometer, which will be charged to MRT and LRT passengers. In July last year, the proposed hike in fares was revived when President Benigno Aquino III said in his 4^th State of the Nation Address that it is high time for the implementation of such fare increase. Hence, using the same formula that was approved in May 2011, passengers taking the 17-kilometer MRT-3 from North Avenue, Quezon City to Taft Avenue, Pasay City, and vice versa, would have to pay Php28 for stored value and single journey tickets from the current fare of Php15. MRT-3 fares were originally set to Php17 to Php34 when the mass transit system started operating in 1999. These were then reduced to Php10 to Php15 from Php12 to Php20 in 2000.

Passengers on LRT-1 from Baclaran to Monumento, on the other hand, will be charged Php30 for every single journey and Php29 for stored value tickets from the current Php20 base fare. Likewise, LRT-2 passengers taking the route from Recto Avenue to Santolan will be charged Php24 for stored value and Php25 for single journeys from the existing base fare of Php15.

The last time the government raised the mass transit fares for LRT-1 to Php15 was in 2003, while LRT-2 fares have remained the same.

According to Abaya, due to the failure to match fare adjustments with increasing operating costs brought about by inflation, there was a break-even of finances for all three transit lines. He said, “In turn, this crippled their ability to invest in large-scale improvements for their facilities, since revenues have only been enough for day-to-day operational requirements.”

Abaya added that an estimated Php2 billion would be made available for development projects and relief operations in other parts of the country, since around 60 percent of the cost for each LRT-1 and LRT-2 passenger and about 75 percent of each MRT-3 passenger are subsidized by the government. The Transportation Secretary pointed out that the government pays around Php10 billion every year for the subsidizing of the MRT and LRT operations.

“I’m referring to the vast majority of Filipinos outside of Metro Manila – those in other parts of Luzon, in the Visayas and in Mindanao, most especially those whose lives have been severely affected by typhoons and calamities. They will be the real beneficiaries of a more equitable distribution of these savings.”

The estimated savings will be equivalent to 8,240 classrooms, 82 kilometers worth of farm-to-market roads or 11,440 hectares of irrigated farmlands, which will all be beneficial to the people.

The reported MRT and LRT fare hikes come amid the rollback in the minimum fare for jeepneys, from Php8.50 to Php7.50.

The government will pursue MRT buyout

Despite the Senate having reportedly denying funding for the MRT buyout, the Philippine government is said to pursue their plan in taking over the breakdown-prone MRT-3. Transportation and Communications Secretary Joseph Emilio Abaya told the STAR, “The takeover-buyout plan is still an option, which I and Budget Secretary Butch Abad and Finance Secretary Cesar Purisima will pursue. That is our mandate from President Aquino.”

Abaya also added that the said government buyout of MRT-3, which is the transit line along EDSA, is “still the most advantageous arrangement for riders and taxpayers.”

“Some people are out to derail this plan because they want to continue making money,” Abaya said this without elaborating and naming names. He also added that he does not have any idea how the takeover-buyout option could push through. Referring to Abad and Purisima, Abaya added, “We still have to discuss and flesh this out.”

Abaya however added that the Php6 billion allocation – part of the Php54 billion the House of Representative has included in the Php2.606 trillion national budget for 2015 – for the purchase of the remaining bonds of MRT Corp (MRTC) could be the solution to pursuing the takeover-buyout plan.

However, the Senators eliminated the bulk of the Php54-billion appropriation and retained only a small part, which included the Php6 billion intended for purchasing the remaining 15 to 16 percent of the MRTC bonds that were floated by private investors who built the EDSA transport system.

The only state banks – Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP) – are the only financial institutions that hold more than 80 percent of the MRTC bonds, controlling the corporation that owns the MRT-3.

Isabela Congressman Rodolfo Albano III, who is among the few who supports the planned MRT takeover said that if the government is able to buy all of the MRTC bonds, they will have ownership of the EDSA rail line and have free rein in rehabilitating the transit system without any interference from other private investors. He said, “The private investors claim that the government, by holding MRTC bonds, owns only economic interests, including revenues, while they, the investors, have ownership rights over the system that produce such revenues. To me, economic rights and owner- ship rights are one and the same thing, because when the contract between the government and private investors end in 2015, both of these rights and interests will accrue to the state. By then, the state will own the system,” he added.

Rep. Albano also said that private investors would have no stake at all in MRT-3 after the contract expires, regardless of how they try to distinguish the differences between economic and ownership rights.

The Hidden Agenda

Riding the MRT has been part of my everyday life. I had good and bad experiences.

I ride the MRT even if the travel is Guadalupe to Boni only. MRT is very useful specially when travelling from Makati going to North.

It's good to ride MRT because it is much cheaper and way faster than other transportation vehicles.

But it's not always good riding the MRT.

Once I have been a victim of cellphone snatchers while riding.

And note that there was a defective train overshot its tracks and ran past Taft Avenue station in Pasay last August.

Snatchers are expert thieves, they are not fair in life, they do not feel how we work hard for our cellphones. It is just easy for them to do this crime.

Just like riding the MRT, there are corrupt leaders in our country.

Just like the thieves, they do not feel the hardships of many people.

This coming 2015 Elections may we learn from our mistakes. Let us vote for the leaders who will bring great change in our nation.

The issue about the MRT buyout can be a reminder that we must need to choose.

DOTC Secretary Jun Abaya had so many announcements for the MRT buyout.

Without consulting his plans to Fil-Estate, Roberto Sobrepeña who heads MRT Holdings (before), he is confident on declaring his plans.

Many are doubtful about these, reports and opinions expressed that he has personal intentions with MRT buyout.

According to DOTC Secretary Jun Abaya, upgrading of MRT-3 is critical in order to improve our services to passengers in terms of both safety and convenience.

He says most of these projects will be completed in 2015 to 2016 under current timelines, which is why DOTC is already pursuing them separately from the buy-out.

It seems he has a very impressive plans but how come he is not okay sharing it to the person who heads the MRT Holdings?

He must be hiding something. Even senators are doubtful about his proposal.

Senator Chiz Escudero said over a Senate decision to remove the P53.9-billion appropriation for a government buyout of Metro Rail Transit-3 from its private owners, saying it will not improve the condition of the mass rail system.

A temporary shutdown

Department of Transportation and Communications Secretary Joseph Emilio Abaya is proposing for a temporary shutdown of the Metro Rail Transit (MRT).

According to records obtained by News5 via Interaksyon, six of the 16.9-kilometer rapid transit system needs to be replaced immediately because it is already old and defective.

In case there will be a train system shutdown what will be its cause to the public.

Why it is not totally good at all?

1. It may not be good because the first option for the commuters is to ride the buses. Despite having the MRT, traffic situation is still a big problem everyday.

2. With the 550,000 passengers who ride the train everyday, buses are not enough to service the commuters!

3. DOTC has extended the one-year maintenance contract of Autre Potre Technique Global Inc. that expired on Sept. 5. The maintenance contract is among the close to P10-billion projects being undertaken by the DOTC to improve the operations and decongest the MRT-3. 

The biggest is the P3.76-billion MRT-3 capacity expansion project, involving the acquisition of 48 brand new trains that was awarded to CNR Dalian Locomotive and Rolling Stock Co. of China to increase its capacity by 66 percent to 800,000 per day.

4. President Aquino has failed to implement the solution the TESP (TES Philippines Inc., which has been the maintenance operator of the Metro Rail Transit System Line 3 (MRT-3) since 2000. ) said the only solution to prevent such collapse is an immediate supply of an additional fleet of trains and upgrade the electrical and electronic systems supporting it.

The operations have been blocked by  breakdowns due to broken rails, failure in communications system and floods as well. On Aug. 13, a train crashed the Taft Avenue station hitting a concrete barrier, injuring at least 36 passengers.

Records show that the DoTC received three proposal in 2004, 2008 and 2010 to buy additional trains.

Sobrepeña revealed that MRTC tried four times to buy new trains for the mass rail system as early as 2004, but DOTC never acted on the proposal.

Sumitomo Corp. designed, built and maintained the MRT3 system under the principle of a single point of responsibility which supposedly meant that the Japanese firm guaranteed 20 trains running at any given point in time.

DOTC is giving interested bidders for the P2.2-billion maintenance contract of MRT-3 more time to prepare their proposals.

Undersecretary Rene Limcaoco issued General Bid Bulletin 06-2014 postponing the submission and opening of bids to Oct. 28 instead of Oct. 17.

Abaya said that the government has decided to bid out a longer maintenance contract, as the current one-year contract is too short.

DOTC extended the one-year maintenance contract of Autre Potre Technique Global Inc. that expired on Sept. 5.

The government terminated the contract with Sumitomo in 2012 and it was a big factor to the MRT failures.

The DOTC effectively lost the single point of responsibility.

Causes of Problems Revealed

After the series of MRT accidents and reported malfunctions, it has prompted an inquiry at the Senate.

And at the Senate hearing on the frequent MRTbreakdowns, Sen. Chiz Escudero asked Undersecretary Jose Lotilla why the government has not sued Metro Rail Transit Corp. (MRTC) or MRT Holdings for defaulting on its duty to buy more trains when the present number has exceeded its original capacity.

Lotilla said the maintenance records were still with MRTC and the government was loath to file a case unless it had gathered sufficient evidence.

Metro Rail Transit Corp. (MRTC) or MRT Holdings is the owner of the trains.

Department of Transportation and Communications chief Jun Abaya and Fil-Estate and MRT Holdings Chair Roberto Sobrepeña gave their respective sides on the sorry state of the mass rail transit system MRT 3.

DoTC ignored 3 MRT proposals to buy more trains

Records show that the DoTC received three proposal in 2004, 2008 and 2010 to buy additional trains.

Sobrepeña revealed that MRTC tried four times to buy new trains for the mass rail system as early as 2004, but DOTC never acted on the proposal.

After Sumitomo Corp. as original maintenance contractor was terminated in 2012, what heppened.

...train problems arises.

Sumitomo designed, built and maintained the MRT3 system under the principle of a single point of responsibility which supposedly meant that the Japanese firm guaranteed 20 trains running at any given point in time.

In 2012, the DOTC awarded a P517 million MRT maintenance contract to a consortium led by a company called PH Trams.

The government terminated the contract with Sumitomo in 2012 and it was a big factor to the MRT sorry state

The DOTC effectively lost the single point of responsibility that has now led to the question who was at fault?

Repots revealed that thhe three PH Tram incorporators:

• Arturo Soriano,
• Wilson de Vera
• Mario de la Cruz,

They were allies of Vitangcol (Metro Rail Transit general manager Al Vitangcol III) Soriano is an uncle of Vitangcol’s wife who mysteriously got out of PH Trams just before the company he founded got a half a billion peso maintenance contract. 

Engineering issues

Secretary Abaya defended the contract termination... that Sumitomo had raised its price from $1.4 million to $2 million a month but refused to guarantee its work of maintaining the system.  

At the Senate hearing, the representative of Autre Porte Technique Global Inc.(current maintenance operator) argued that it should not be blamed for the MRT3’s defects because the transit system’s problems:

1. trains stopping in mid-track
2. losing communication with base due to radio traffic interference
3. running with doors open
4. smoke emitting from a train while it is running

That hey were not linked to maintenance but to engineering issues... that it fell on DOTC's part. It was DOTC who was violating the BLT Agreement. MRT Holdings is the owner of the train line through the Metro Rail Transit Corp., or MRTC, while MRT3-DOTC is the operator under a 25-year build-lease-transfer (BLT) agreement with the owners. Reports says that MRTC should be the one to sue the DOTC for numerous violations of the BLT agreement. It has sued the Philippine government in the arbitration court in Singapore for nonpayment of numerous obligations.

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.