Thoughts on MRT3 Buyout

            The Department of Transportation and Communications(DOTC) headed by Sec. Jun Abaya is pushing to buyout MRT3. He said that it is about time to takeover the whole operation of the MRT3 which is a privately owned of MRTC. MRT Holdings are composed of different private companies such as Fil Estate, Ayala Land, Ramos Family of National Bookstore and many more.

            The government  wants to buyout MRT3  to stop paying equipment rental fee to the private company. The secretary explained that the Equity Value Buyout (EVBO)  is legal because it was ordered by our own President under Executive Order No. 167 S. 2013. According to Sec. Abaya’s calculation; they will be owned 100% percent of the MRT3 in the first week of January 20015.

            Sec. Abaya also said that they are willing to pay MRTC for about 54 billion pesos for the takeover of MRT3. The secretary stressed that they based this computation according to the formula provided in the BLT agreement. So, he doesn’t want to negotiate to the MRT Holdings. It seems that he want to say to say that ‘take it or leave it.’ But according to the side of former MRTC Chief Roberto Sobrepena, the offering price of the government is not enough to buy the MRT. In 2009, the price of the line was already $2.5 billion or estimated roughly about 110 billion pesos. Sec. Abaya should know the real price of the MRT before they could offer any amount to buyout the MRT3. Sec. Abaya is trying to fool MRTC; he said that they will pay 54 billion pesos, but they already owned a 27 billion worth of bonds.  So, where is the logic behind their offering price?

            Some of the law-makers were expressing their resistance to the MRT3 buyout plan of the government. Because they will get the money to the 2015 national budget. They were asking Sec. Abaya, why not use the money to for other important things such health, education, etc? The lawmakers also suggested that the DOTC should let private companies to handle the MRT line. In short words, be practical. That’s right! Instead to overtake the MRT3, the government should extend their hands to help the MRT Holdings. Don’t use MRT as a vehicle of personal interest. In a previous interview, Bob Soprepena already expressed that MRTC was ready to work hand in hand with the government.

            Does Sec. Abaya has a genuine concern to the commuters that’s why they he wants to buyout the MRT? Or he just want to control the operation of MRT to protect their allied companies? DOTC already ignored the BLT agreement, an agreement between the government and MRT Holdings in just behalf of their own maintenance providers such Phl Trams and APT Global. There is a report saying that APT Global and the government have an agreement that the company should include the spare parts in their service. But APT Global is not providing any spare parts. Then, the government is paying their maintenance provider for about 1.4 million dollars per month. Sec. Abaya should explain this, why he let this to be happened?

            Now, the question is, should the government push their plan to overtake the MRT3? It sounds pretty cool, but this is not a wise move. There is no problem to MRTC; the problem is in the leadership of DOTC.  They have their own decisions and they don’t even consulting their private business partner that’s why the  situation in MRT became worst.