Thursday, June 28, 2018

Busy, old Guadalupe Bridge up for retrofitting in 2019

Hustling Guadalupe Bridge in Makati City will finally get the needed repair early in 2019, more that six years after Japan experts recommended a fix due to cracks in its columns and foundations.

A report on "Unang Balita" said that the bridge, forming part of EDSA, is scheduled for partial retrofitting in March or April 2019.

In 2012, experts at the Japan International Cooperation Agency (JICA) recommended the bridge for the retrofitting, after seeing cracks in its columns, the report said.

During an ocular survey on the bridge last Wednesday, GMA News, together with JICA and Department of Public Works and Highways (DPWH) officials, saw the bridge's rusty steel trusses, and cracks and wholes in its foundations.

DPWH officials were quoted in the report as saying that the bridge's seismic capacity has diminished and may not be able to withstand a strong quake.

Some 200,000 vehicles (all types) pass through Guadalupe Bridge everyday and it has deteriorated overtime due to continuous use, experts said.

Meanwhile, the DPWH on Wednesday said that it is closely monitoring a dozen more bridges in Metro Manila because of their "poor condition."

Aside from the Otis Bridge in Manila, which is now under repair, 12 other bridges, including the Guadalupe Bridge have been recommended for repairs.

Among the 12 is the historic Old Santa Mesa Bridge or San Juan del Monte Bridge connecting the city of San Juan and Santa Mesa in Manila, which was marked by the DPWH with an overall condition of "poor" in November 2017, according to a report by Bam Alegre on "News To Go" last Wednesday. —LBG, GMA News

Election promise of in-city relocation hangs

CONDEMNED Authorities have declared Fort Bonifacio Tenement at Barangay Western Bicutan in Taguig City structurally unsafe and told the residents to leave.—LYN RILLON
(Last of two parts)

In 2010, her campaign for Taguig’s mayoralty took candidate Lani Cayetano to Fort Bonifacio (FB) Tenement, a low-cost housing site on the city’s western fringe that was bracing for disaster.

Residents of FB Tenement, a pillar of the late President Diosdado Macapagal’s program to expand housing options to the slums, had been ordered to leave the 1960s structure, which had been condemned.

“You will not be leaving,” Cayetano told the anxious residents. “You can now sleep in peace.”

The residents of the tenement voted for Cayetano, who went on to win the mayoral race. She cruised to reelection in 2013, and again three years later.

But in the eight years that followed Cayetano’s first visit — which was one of only two visits — to FB Tenement at Barangay Western Bicutan, the residents have not had much peaceful sleep.

After she won her first term, the Department of Public Works and Highways (DPWH) wrote to then Vice President Jejomar Binay, saying FB Tenement and two other housing sites in Manila were “unsafe and should be immediately vacated.”

Eviction notices

Since then, at least 19 eviction notices have been issued to the residents of FB Tenement.

They, in turn, have delivered 36 letters to the local government of Taguig, hoping to make their case for temporary, in-city relocation while waiting for a new tenement to be built.

Their pleas have gone unanswered. The National Housing Authority (NHA) has again warned the residents of forced eviction if they refuse to leave voluntarily.

“We wanted to give a chance to those who were hoping for in-city relocation. We wanted the local government to be part of the solution, but nothing materialized,” said NHA spokesperson Elsie Trinidad.

Trinidad defended the NHA decision to bring up the possibility of evictions after two years of relative silence on the matter.

While the controversy is often portrayed as a deadlock between the residents and the NHA, it appears that both parties are also eager to point to the local government as responsible for the situation.

“All I know is the NHA [officials] are willing to solve the problem,” said Lito Sarcilla, president of FB Tenement Homeowners’ Association. “The problem here is the local government. They are not willing.”

Where’s the mayor?

“Ever since our problem began, Mayor Cayetano has not faced us,” echoed Reynaldo Ramos, a member of the association’s board.

Only Cayetano’s underlings at the local housing office have been dealing with the residents, Ramos said.

President Duterte himself wrote to Cayetano on behalf of the residents but she did not respond, according to Lorenzo Calaminos, spokesperson for the Concerned Residents of FB Tenement Alliance.

There was no immediate comment from the Taguig City local government.

“We’ve been asking them to give us in-city relocation, but they have not acted at all,” Ramos said.

Instead, the residents have been offered a relocation site at Barangay Aguado in Trece Martires City, Cavite province.

According to the residents, the Trece Martires site has no livelihood and schooling options, a far cry from FB Tenement, where hospitals, schools, and even the barangay hall are just a stone’s throw away.

“To move to [Trece Martires] would be like committing suicide,” said Eddie Barbuena, another member of the homeowners’ association’s board.

Toxic relocation area

Barbuena’s remark may not be hyperbole. According to Calaminos, the air, soil and water in the Trece Martires site are  contaminated by a nearby toxic waste facility.

Records from the Department of Environment and Natural Resources show that a treatment, storage and disposal facility for hazardous waste registered to Integrated Waste Management Inc. (IWMI) was  located at Barangay Aguado in 2014.

“It’s not a relocation site, it’s a cemetery,” Calaminos said. “They say FB Tenement is a danger zone, but now they’ll bring us to a death zone.”

Documents obtained by the Inquirer show that the IWMI facility treated waste such as pesticide, confiscated dangerous drugs and expired pharmaceutical products, among other hazardous trash.

Calaminos said that in 2005, international study groups on pollution issues released a report stating that the eggs of chickens grown near the facility contained “alarming levels of dioxin,” one of the most toxic chemicals known to science.

According to NHA field officer Sonia Mabeza, the agency had not heard of toxic waste in the area.

“These kinds of housing projects in the area would not have been put up if there was an issue like that. It’s moot and academic,” she said.

Mabeza said the NHA was no longer offering the Trece Martires relocation site to FB Tenement residents because there were no more vacant lots in the area.

The lack of a viable option for relocation — temporary or permanent — does not fully explain, however, why 1,000 families remain in the “condemned” compound.

Vibrancy, not decay

On paper, the DPWH has called FB Tenement “ruinous,” yet its most striking feature is not a sense of decay or dilapidation, but an unmistakable vibrancy.

When members of the community speak about the tenement — which has blossomed throughout the decades into a world unto itself, replete with its own salon, meat shops and church — it is with a keen sense of pride and touch of protectiveness, like a parent.

“As a resident, you would know how strong this building is,” Barbuena said. “This is where I was born. This is where I will die.”

Graffiti in eye-popping colors and bold designs adorn the ground and walls of the well-loved basketball courts, which have been a stomping ground for no less than NBA stars LeBron James, Jordan Clarkson and Paul George.

International rapper Mike Swift, who was raised in New York City, said he fell in love with the tenement when a resident introduced him to the place because it reminded him of life in the Big Apple.

“When we moved here [in 1967], our lives changed. I was finally able to study,” said Sarcilla, who added that FB Tenement had been a lifeline out of poverty — a buoy that enabled poor families to make a living without worrying about astronomical rent.

“We came from mud, and now the government is not only returning us to mud, but drowning us in it,” he said.

Strong community ties

Eighty-two-year-old Severino Ramos Jr., who moved into FB Tenement in 1976, is the oldest original resident of the building.

His apartment, though small, is decked with things amassed by multiple generations that have occupied it — a Bible and magnifying glass set on a wooden stand, books on a shelf with such titles as “How to Have an Obedient Dog” and “Medical Cures and Treatments,” keepsakes, including magnets, from travels.

“Even if you start out poor here, you can send your kids to school,” Ramos said. “And when they’re done, you leave the tenement so someone else can benefit.”

But the strong community ties kept him from leaving even after he, as a furniture maker, had put all five of his children through college.

The residents are quick to remind the local government that they are not informal settlers, but housing awardees who have been working and paying taxes in Taguig for generations.

“I am all for the progress of Taguig,” Sarcilla said. “But the problem is, are we part of the progress? Or do they see us as an obstacle, a disturbance to progress?



Read more: http://newsinfo.inquirer.net/1004933/election-promise-of-in-city-relocation-hangs#ixzz5Jiut7fg4
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Scavengers living in condemned tenements face eviction

(First of two parts)

Tessie Rada, a 63-year-old grandmother, has learned to navigate through labyrinthine Aroma Compound, a temporary housing project at Vitas, in Manila’s Tondo district, with near-gymnastic skill.

To get from the welcome arch on R-10 Road to her apartment in Building 2, she sidesteps heaps of garbage and puddles of mud, and squeezes into narrow alleys between decaying buildings and heaving flesh.

The air is thick with the stench of rotting food and sweat, but she’s not winded at all.

“You get used to it,” she said. “It’s not that we don’t aspire for better conditions. We just live with what we have.”

Rada and her family of five are among the 5,000 residents of Aroma Compound, which was built for the scavengers of Smokey Mountain.

They have been waiting to be moved to permanent shelters since 1995, when the government ordered the dump shuttered due to environmental pollution and risk to public health.

But 23 years later, the National Housing Authority (NHA) has condemned the site as unsafe, along with Punta Santa Ana Tenements, also in Manila, and Fort Bonifacio Tenement in Taguig City. All 7,000 occupants of the three tenements have been ordered to leave.

“They say they wish to relocate us to a site where it’s safer,” Rada said, gesturing toward the collapsed concrete wall of her apartment building, which overlooks a mountain of trash.

“Yes, we would be physically safe. But the options are far from our livelihoods, far from [the children’s] schools. They might as well have sentenced us to death,” she said.

Worst lot

Like most of the residents, Rada and her husband worked as scavengers to raise their three grandchildren, all in elementary school.

Except for Aroma—or Vitas, which was erected two decades later—the tenements were built in the 1960s as part of the NHA mandate to provide affordable housing for low-income families.

Vitas has 34 two-story buildings that were originally designed to accommodate 2,500 families.

The families were supposed to be transferred to permanent houses at Paradise Heights, an in-city relocation site in Tondo, Manila.

But when the NHA finally finished building the houses in 2004, not everyone was accommodated, said Elsie Trinidad, a spokesperson for the housing agency.

Evangeline Rontos, who was in her teens when her parents left her to move to Paradise Heights, sold her apartment there and settled in Caloocan City.

“It was beautiful then, clean and organized,” Rontos, 39, said of the Vitas of her youth.

With a husband who works as trash hauler and four children, she said the neighborhood was now foul and filthy. “We’re watching it crumble,” she said.

Maxed out

Some of those still staying in Vitas are original awardees with extended families. Others have moved out but are renting their apartments to outsiders.

The buildings swiftly decayed as the population doubled, and from years of overuse, Trinidad said.

In 2010, the Department of Public Works and Highways (DPWH) declared the buildings “structurally unsound, dangerous and high-risk.”

The walls and roofs have either collapsed or cracked, plastered over by the residents with whatever they could find—plywood, wire mesh, tarpaulin—to keep what remains of the structures from falling apart.



Midway to the housing project’s period of viability and liveability, usually around 50 years, it has maxed out what Trinidad called its “full economic life.”

The Office of the Building Official in Manila ordered the buildings’ demolition on Nov. 20, 2017, citing three findings from an inspection two years earlier.

Vitas did not have substantial drainage systems and sanitary facilities.

The common comfort rooms in each structure were clogged and could not accommodate the simultaneous needs of occupants.

Obnoxious odor prevailed and posed health hazards.

Citing these flaws, alongside the government’s campaign to prepare the city for a possible “Big One” earthquake, the NHA has renewed its appeals to occupants to vacate the buildings for their own safety.

“These housing sites are disasters waiting to happen,” Trinidad said. “The only option is preemptive evacuation before anything [bad] happens.”

Too late?

As early as 2012, the NHA had been offering the residents alternative government housing sites in Naic, Cavite province, Baras in Rizal province and Camarin in Caloocan. In March, the agency pressed its order to the residents to leave voluntarily or face eviction, taking the residents by surprise.

“They let the problem sit for years, and then suddenly they call for preemptive evacuation. [What] is really their interest here? They have no concrete plans for us,” said Fe Hullipaz, president of the Vitas residents’ group, Samahan ng mga Maralita sa Tenement Housing.

Trinidad said the NHA had seen through the residents’ calls for in-city relocation.

“We had to listen to them. [We] have given them since 2012, but the preferences of the people, they did not materialize,” she said.

The residents have found allies in several militant party-list lawmakers, particularly Gabriela Rep. Emmi de Jesus, who volunteered to help negotiate with local governments for in-city relocation.

But there was hardly available land and most local governments approached by De Jesus did not want to shoulder the burden of more informal settlers.

In the end, the original alternative sites on the outskirts of Metro Manila have remained the only viable option.

Retrofit, not demolish

The same concerns were shared by residents of Punta Santa Ana Tenements in Manila. The project’s towering, uniform structures belie the buildings’ deterioration.

Built along the Pasig River in 1963 under then President Diosdado Macapagal for informal settlers transferred from danger zones, the tenements were home to at least 1,000 people.

The two multistory buildings weren’t just structures but represented Barangays 901 and 902 of Manila.

Their fate was political capital for candidates during elections, though no official has really made overtures to the NHA, Trinidad said.

“In any case, the barangays exist only because of the tenements. The officials, the voters are also the residents. When it’s demolished, so too are the barangays,” she said.

“It’s really the homeowners who resist the order and negotiate with the NHA,” she added.

Eduardo Igoy, the president of the homeowners’ association, insisted the buildings were fine, arguing that the DPWH and the NHA did not even conduct a “scientific test” to determine its structural soundness before it released its 2010 order to vacate.

But Gracia Malimban, NHA field officer for Punta Santa Ana, said that Igoy was merely referring to a hammer test, which required the residents to vacate and the apartments padlocked before the test could be carried out.

“No one wanted to do that, of course,” Malimban said.

The DPWH still tested eight cores of the two buildings and discovered that the concrete within had been pulverized.

Rehabilitation

Still, residents for both Vitas and Punta Santa Ana remain hopeful that the NHA will retrofit, not demolish, the buildings.

Ricardo Cajigas, Manila city engineer, told the Inquirer that the housing projects, especially Vitas, were well past the point of rehabilitation.

“It would cost more to save the structures than to build new ones. Rehabilitating the structures would essentially be rebuilding the whole thing anyway,” Cajigas said.

The NHA has yet to determine what it plans to do with the properties after the buildings are demolished.

Trinidad said the agency was considering reclassifying the land for mix-use purposes and develop the sites through public-private partnerships, which would surely make any housing project in the area expensive.

“If we do build another housing site there, of course its former residents would be the priority,” said NHA’s Trinidad.

“But it’s going to be under a set of new terms and conditions. If before they paid P7 for rent way back in 1965, it’s going to be different now. After all, the thrust of the government is affordable, not free, housing,” she added.

For the people soon to be uprooted from their homes, they cannot even see the future for which they are being given priority. They view the proposal as just another one of the risks they have to choose from.

“We’ll continue in our fight for our right to live here,” Hullipaz said. “At least until we are given better options.”

Wednesday, June 27, 2018

LRT1 Cavite extension postponed to October 2018

The construction of Light Rail Transit Line 1 extension from Parañaque to Cavite has been pushed back to October this year due to right-of-way (ROW) issues, private operator Light Rail Manila Corp. (LRMC) said Wednesday.

“‘Pag tinurnover sa ‘min ‘yung right-of-way mag-start na kami. I think ‘yung sa side ng ROW one almost mga 70 percent siya clear. So tingin namin is parang baka feasible ‘yung October,” LRMC president and CEO Juan Alfonso told GMA News Online.

Alfonso has said the construction is targeted to start sometime in the middle of 2018.

The right-of-way issues will be segmented into three areas, with the first area now 70-percent cleared.

“Ongoing siya, about ... siguro mga nasa 70 percent na ‘yung ROW one. Included kasi do’n properties and utilities na relocation,” he said.

“Problema sa ROW kasi is may mga private lots. Mga ROW one, mostly government lots. ‘Pag may private lots, meron pang process ‘yan na sinusunod para may ROW,” he Alfonso noted.

LRMC seeks to extend the mass rail system’s reach with eight new stations spread along 11 kilometers through Parañaque, Las Piñas, and Bacoor.

The new stations are:


  • Aseana
  • Manila International Airport
  • Asia World
  • Ninoy Aquino along the east lane of Ninoy Aquino Bridge over the Parañaque River
  • Dr. Santos along the south lane of Dr. Santos Road
  • Las Piñas
  • Zapote
  • Niog


“‘Yung construction, matatapos siya 2022—‘yung full system. Hanggang Sucat ... siguro 2021,” Alfonso said. —VDS, GMA News

https://www.gmanetwork.com/news/money/companies/658372/lrt1-cavite-extension-postponed-to-october-2018/story/

Tuesday, June 26, 2018

DoTr sets date for LRT-1 fare hike consultation

THE Department of Transportation (DoTr) said it has set an initial date for the public consultation on the fare hike appeal of Light Rail Transit Line 1 (LRT-1).

In a message to BusinessWorld, DoTr director for communications Goddes Hope O. Libiran said the application of LRT-1 operator Light Rail Manila Corp. (LRMC) is currently being processed.

“Tentatively, a public consultation will be held on July 11. But, LRMC will publish the final date in newspapers once the date is confirmed with LRTA (Light Rail Transit Authority),” she said.

However, LRMC said in a text message it has yet to receive an update on its fare hike petition.

LRMC submitted in March an application to raise the fares in the LRT-1 by P5 to P7. A 5% fare hike every two years is part of its LRT-1 concession agreement with the government.

However, the initial petition of LRMC in 2016 was not granted by the DoTr, which led it to appeal in 2018 for a cumulative 10% increase.

The current fare for the LRT-1 is P15, P20 and P30, depending on distance. Since LRMC took over the operations and maintenance of the train system in September 2015, it has never increased fares. The last fare hike was in January 2015.

In a briefing in May, LRMC Chief Executive Officer Juan F. Alfonso said the fare adjustment is based on the average fare of P20.

“What we’re doing right now is coordinating with LRTA (Light Rail Transit Authority) to go through the process. The process involves publishing, and then public consultation, and then approval if we’re allowed to increase the fares,” he said.

Transportation Undersecretary Timothy John R. Batan told reporters last month DoTr needs to conduct its due diligence first before it grants the petition.

“There’s a process for this… and we’re going through that process. Part of that process is listening to the public, reviewing the financials, reviewing the legal aspect. So it’s going to be considered with all of those facets in mind,” he said.

LRMC is the consortium of Ayala Corp., Metro Pacific Light Rail Corp., a unit of Metro Pacific Investments Corp., and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.

Metro Pacific Investments Corp. is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Denise A. Valdez

Monday, June 25, 2018

Ombudsman finds probable cause to charge ex-Transportation Chief Abaya, 16 others over anomalous MRT deal

The Ombudsman has found probable cause to charge former Transportation Secretary Jun Abaya over the alleged anomalous P4.2-billion MRT-3 maintenance contract.

Ombudsman Conchita Carpio Morales on Monday also found three Transportation undersecretaries and a number of officials in violation of the Anti-Graft and Corrupt Practices Act. Private respondents from maintenance provider Busan Universal Rail, Inc. were also included in the charge list.

Abaya, ex-DOTC officials face graft rap over MRT-3 maintenance contract 

The Ombudsman's Special Panel of Investigators said in October 2014 and January 2015, the Transportation Department conducted two biddings for the train system's three-year maintenance service contract. It said there was failure of bidding in both events as nobody submitted bids.

This is a developing story.

Japan to extend P18.4-B soft loan for MRT 3 rehab

The Japanese government has committed to extend to the Philippines 38.1 billion yen (about P18.4 billion) for the rehabilitation of the Metro Rail Transit Line 3, according to the Department of Finance.

This is on top of the financing assistance it is extending for other big-ticket infrastructure projects, the DOF added.

Finance Secretary Carlos Dominguez III said that in last week’s Fifth Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation in Tokyo, Japanese officials had expressed their government’s intention to extend indicative official development assistance (ODA) loan of 38.1 billion yen for the MRT 3 project.

Japan is also set to provide a supplemental loan of 4.37 billion yen for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project, subject to the Philippine and Japanese government approval.

Officials of the two countries also confirmed the updated list of projects being pitched for financing by the Philippines: the P211.4-billion Philippine National Railways (PNR) North 2 Project; P124.1-billion PNR South Commuter Line; P10-billion Road Network Development Project in Conflict-Affected Areas in Mindanao, and the Pasig-Marikina River Channel Improvement Project.

During the meeting jointly led by Dominguez and Socioeconomic Planning Secretary Ernesto M. Pernia for the Philippine side and Chief Cabinet Secretary Yoshihide Suga and special adviser to the Cabinet Shigeru Kiyama for the Japanese side, the officials “reaffirmed their commitment toward the partial operability of the first phase of the Metro Manila Subway Project by May 2022, subject to the progress of the measures that need to be carried out to deal with various concerns, such as land acquisition and relocation.

In March, the Philippine government and the Japan International Cooperation Agency signed a 104.5-billion yen or P51.3-billion loan to jump-start the construction of the country’s first subway system.

While the Metro Manila Subway Project Phase 1 is projected to cost P356.9 billion, Japanese Prime Minister Shinzo Abe earlier expressed intention to possibly lend up to 600 billion yen or about P294.8 billion under the Japan-Philippines Joint Statement on Bilateral Cooperation for the Next Five Years issued last October.

The 36-kilometer subway, which will connect Mindanao Avenue in Quezon City and Food Terminal Inc. in Taguig City, with a spur line to the Ninoy Aquino International Airport, would be the biggest Philippine infrastructure project to be funded by Japanese official development assistance.

The subway would be completed by 2025.

For the PNR North 2 and South Commuter Line projects being eyed for cofinancing with the Manila-based multilateral lender Asian Development Bank, the two sides “agreed to continue the trilateral consultations,” which the DOF said were aimed at “[firming] up strategies and ways on how to efficiently implement the two PNR projects.”

“We are targeting to sign the exchange of notes for both projects in November. We will also exert efforts to achieve the challenging goal of making the North rail section partially operational by 2022,” Dominguez said.

Pinning my hopes on MMDA’s smart plan

WAITING for a ride home for three hours on three consecutive days last week make me think about looking for a job near my residence. After getting a ride, it still took me 2.5 to three hours to reach home. And that did not include 1.5 to two hours of commute from home to work in the morning.

Having to live with four to six hours of precious time wasted in daily commute is quite horrible. Heavy rains that fell during rush hours last week made commuting in Metro Manila more frustrating than in previous days because of flash floods that rendered major roads impassable.

Chairman Danilo Lim of the Metropolitan Manila Development Authority (MMDA) said the problems we are experiencing started 40 years ago and is made worse by the lack of foresight of one administration after another.

At a forum last Tuesday organized by The Manila Times at Conrad Hotel in Pasay City, Lim presented an ambitious plan to make Metro Manila a “smart city” like the highly urbanized Tokyo in Japan and Seoul in South Korea.


Lim said MMDA has identified the following problems that aggravate the traffic situation in Metro Manila:

– Clogged roads and sidewalks
– Infrastructures encroaching the streets
– Illegally parked vehicles
– Undisciplined road users
– Inconsistent, poorly designed and insufficient transport infrastructure
– High volume of vehicles
– Poor urban planning

The problem areas enumerated, I noticed, did not include weak enforcement of traffic rules and corrupt traffic enforcers who allow vendors and hawkers to occupy not only sidewalks but also the outer lanes of major roads in exchange for money.



Lim may have to go to Quiapo incognito, preferably on a Friday, when more people hear mass at the church. He should observe the traffic enforcers there who allow vendors to encroach the outermost lane while private vehicles occupy up to the second lane, leaving only two lanes passable.

The “smart city” plan calls for integrated policies, programs and services among all 16 cities and one municipality composing Metro Manila, as well as its neighboring towns. Integrating the policies of Metro Manila LGUs alone will be a herculean task.

The vision is to install smart infrastructures to monitor flood, landslide, fire, and accidents and warn communities. These infrastructures would enable authorities to come up with situational analysis based on gathered data in order to deliver timely response to problems.

Lim candidly admitted that the plans may seem ostentatious and inconceivable. It is ambitious, indeed, but, at least, the MMDA is starting somewhere. As the saying goes, a journey of a thousand miles begins with a single step.

Last May 31, the MMDA hosted a forum on “Intelligent Traffic System and Smart City Components with focus on the wonders of the Intelligent Transport System (ITS).” This was ostensibly designed “to help the nation’s capital ease its traffic situation and how people can get advanced facilities to improve their way of life.”

Given its limited manpower and resources, the MMDA promises to provide Metro Manilans better service through intensified enforcement of laws and upgrading of equipment, said Lim, a retired Army general. He said new roads are being constructed to catch up with the backlog of many years.

It felt good for about 30 minutes to be transported to another world while looking at Lim’s power point slides showing an animated presentation of Seoul’s comprehensive and integrated traffic system.

However, less than an hour later, it was back to reality. I was stuck for 30 minutes in traffic on Libertad going to the LRT station. And in the next three consecutive days, I went home late because it took me much longer than in previous days to get a ride home and travel from Intramuros to Old Balara in Quezon City.

During my backbreaking jeepney rides, I just keep hoping that when the MRT-7 project is completed in two years, it will be integrated with LRT-1 and MRT-3 to significantly ease my commuting time. While I believe that the MMDA’s smart plan is too ambitious, I still entertain the possibility that it can be done, but we all have to do our share.

DM Consunji eyeing Japanese partner for NSCR civil works bid

By Arra B. Francia, Reporter

DM CONSUNJI, Inc. is currently in talks with a Japanese partner to form a consortium that will bid for the construction contract for the North-South Commuter Rail (NSCR) traversing Malolos to Tutuban.

DM Consunji Chairman Isidro A. Consunji said he will be flying to Japan on Tuesday to continue ongoing discussions with a Japanese firm for a project involving the installation of the railway’s civil works and system.

“I think the Japanese are serious kasi naglabas na sila ng (because they prepared) bid documents… Kailangan may (There is a need for a) local counterpart,” Mr. Consunji said during a briefing over the weekend.

The $2.88-billion NSCR — running from Malolos, Bulacan to Tutuban, Manila — will be funded by the Japan International Cooperation Agency through official development assistance loans.

Mr. Consunji said the Japanese company has already shown the engineering design and specifications of the railway, noting the difficult part is convincing the Japanese that a local firm can handle such a large project.

“One of the issues is: can a Filipino company handle a project this big? Pero ang Pilipino madali naman mag-scale up pag malaki ang trabaho. Hindi naman mahirap (But for Filipinos, it is easy to scale up if it is a big job. It’s not hard),” he said.

The NSCR is the first phase of the North-South Railway Project, spanning Metro Manila to Albay. The entire railway will consist of four tracks, the first of which connects Malolos, Bulacan to Tutuban, Manila. The second phase will link Tutuban to Los Baños, Laguna. The Malolos-Clark railway will be connected to the Tutuban-Malolos portion, while the fourth phase will connect Los Banos, Laguna to Legazpi, Albay.

Mr. Consunji expects the government to tap various contractors for different phases of the project to speed up its completion.

The NSCR, which will use electric and high-speed technology, is expected to service up to 100,000 passengers per hour. In comparison, the Light Rail Transit has a capacity of around 20,000 passengers per hour.

The project aims to ease congestion in Metro Manila, with the 37.6 kilometer-Malolos-Tutuban line expected to cut travel time from two hours to 35 minutes.

“That’s a very big change in Metro Manila. We should aim for that to happen,” Mr. Consunji said, calling the project a “game-changer” for transportation in the Philippines.

Should the DMCI consortium secure the contract, Mr. Consunji said it would take three years to complete the project.

The executive further added there will be no right of way issues since the company will use the line of the Philippine National Railway.

“Walang right of way issue, kaya ang laki ng chance it can happen (There is no right of way issue, so there’s a big chance it can happen),” Mr. Consunji said.

The NSCR is one of the flagship projects of the current administration’s infrastructure program called “Build, Build, Build.” In December last year, the Department of Transportation awarded the consulting contract for NSCR to a Japanese consortium led by Oriental Consultants Global.

DM Consunji is part of diversified engineering conglomerate DMCI Holdings, Inc. The listed company’s net income rose 5% to P4.3 billion during the January to March period of 2018, lifted by an 8% climb in revenues to P20.3 billion. The company was affected by unplanned outages from its power business during the period, which was offset by higher coal prices.

Japan commits P20.6 B loan for Phl infra

The Japanese government has expressed its intent to provide about ¥42.47 billion (P20.6 billion) worth of funding support for two of the Duterte administration’s infrastructure projects, the Department of Finance (DOF) said over the weekend.

In a statement, Finance Secretary Carlos Dominguez said Tokyo has committed an indicative loan amount of ¥38.1 billion for the Manila Metro Rail Transit (MRT) Line 3 Rehabilitation Project and another supplemental loan amounting to ¥4.37 billion for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project.

Japan may lend $346M for MRT-3

JAPAN is considering a 38.101 billion-yen (about $346 million) official development assistance (ODA) loan for the rehabilitation of Metro Rail Transit (MRT)-3, and an additional 4.37 billion yen for the ongoing construction of the New Bohol Airport.

The Department of Finance (DoF) said in a statement over the weekend that Japan has expressed its intention to provide the new loan packages during the fifth meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation on June 20 in Tokyo.

“Finance Secretary Carlos G. Dominguez III said that during the 5th meeting of the Philippines-Japan Joint Committee on Infrastructure Development and Economic Cooperation, Japanese officials expressed their government’s intention to provide indicative official development assistance (ODA) loan financing of about 38.1 billion yen for the MRT Line 3 Rehabilitation Project and an indicative supplemental loan of some 4.37 billion yen for the second phase of the New Bohol Airport Construction and Sustainable Environmental Protection Project ‘subject to the necessary Philippine and Japanese Government approval processes,’” the DoF statement read.

According to the Ministry of Foreign Affairs of Japan, about twice as many trains in the 17-kilometer railway should be operational by 2022 after the rehabilitation period.

The Department of Transportation (DoTr) said the Philippine and Japanese governments started negotiations and feasibility studies for the MRT rehabilitation in January, after both parties exchanged notes on the ODA terms.

Meanwhile the new ODA loan for Phase 2 of the New Bohol Airport — which is expected to be completed this month — will meanwhile cover the increase of construction costs due to “the subsequent large currency exchange rate fluctuations and other factors.”

This will supplement the 10.7 billion-yen loan Japan provided in 2013.

Both loans will have an interest cost of 0.1% per annum, payable in 28 years with a 12-year grace period, and will require the participation of Japanese contractors.

Both countries also firmed up the proposed pipeline of infrastructure projects to be built with Japanese assistance.

These include the: Malolos-Clark Philippine National Railways (PNR) North 2 Project; the Tutuban-Laguna PNR South Commuter Line; the Pasig-Marikina River Channel Improvement Project; and the Road Network Development Project in Conflict-Affected Areas in Mindanao.

“We are targeting to sign the Exchange of Notes for both projects in November 2018,” Mr. Dominguez said. “We will also exert efforts to achieve the challenging goal of making the North rail section partially operational by 2022.”

“Both sides will continue to have consultations at the technical working level to accelerate implementation and address challenges for the railway projects,” he added.

Both parties also reported the progress of ongoing projects such as the land acquisition and relocation of utilities for Metro Manila Subway Phase 1.

The Philippines and Japan also agreed to explore further cooperation in urban development projects in Cebu and Davao, particularly in the areas of information and communications technology, energy, agriculture, environment, public safety, and disaster prevention.

Both countries signed the Letter of Intent for Technical Cooperation between the Department of Energy (DoE) and the Japan Ministry of Economy, Trade, and Industry on the Action Plan on Electric Power, which aims to help resolve issues plaguing the Philippine power sector, such as the need to improve generation efficiency and electrification rates.

They also signed the amended joint venture agreement between the Bases Conversion and Development Authority and the Surbana Jurong Group, which “restates their commitment” to develop New Clark City.

According to the DoF, there are about 12 Japanese ODA projects “already delivered” since the new administration took over.

Mr. Dominguez and Socioeconomic Planning Secretary Ernesto M. Pernia led the Philippine delegation, while led by Chief Cabinet Secretary Yoshihide Suga and Shigeru Kiyama, the special advisor to the Cabinet, represented Japan.

“This is now our fifth meeting since March 2017 and it is evident that our frequent meetings are beginning to bear positive results. Indeed, our commitment and efforts to fast-track loan processing and project implementation are gaining headway,” Mr. Dominguez told the Japanese delegation.

“As a result of these high-level meetings, our various agencies have been coordinating regularly to implement our agreed and joint actions to facilitate and hasten project implementation,” he added.

Mr. Suga said: “This joint committee has been (convening) for the important plan in developing multi-layer bilateral cooperation since we discussed cooperation in various areas such as traffic and transport infrastructure problems, the Metro Manila Subway project, peace and development in Mindanao, safety and counter-terrorism measures and information and technology.” — Elijah Joseph C. Tubayan

Wednesday, June 20, 2018

LRT-1 extension work to start Oct.

Light Rail Manila Corp. (LRMC) is on track to start th construction of Light Rail Transit Line 1 (LRT 1) extension to Cavite by October.

Rodrigo Bulario, LRMC operations director,  told reporters  the company is waiting for the government to deliver the remaining five percent of right-of-way for Package 1 which runs from  Redemptorist road, MIA road, Asiaworld, Ninoy Aquino avenue and Dr. Santos avenue. 

The Cavite extension, totaling 11.7 kilometers in length, consists of elevated guideways throughout the majority of the alignment. The only at grade guideway section is at Zapote which will house the satellite depot and a new station.

The extension will connect to the existing Baclaran station of the existing LRT-1 to Cavite through eight additional stations namely Redemptorist, NAIA avenue, Asia World; Ninoy Aquino; Dr Santos; Las Pinas; Zapote; and Niog.

Dr. Santos, Zapote, and Niog stations shall provide transfers to other modes transportation.

Meanwhile, LRMC is also expected to launch this year a mobile application that will help improve  customer service in LRT-1.

In partnership with the De La Salle-College of St. Benilde Hub for Innovation For Inclusion (DLS-CSB HIFI), LRMC launched Hackatren  which aims to crowdsource for information technology (IT) applications that will help in further improving customer experience on LRT-1.

Juan Alfonso, LRMC president and chief executive officer, said “with Hackatren, we will showcase the IT programming skills of Filipinos. It will also be a platform for them to contribute to the uplift of customer experience at LRT-1.”

Hackatren is open to all Filipinos who are 18 years old and above, with a knack for programming, designing, and coding.

Interested applicants must form a team of three to four members, of which one is the designer or architect, and the rest are coders.

Registration is open from June 11 to June 30, 2018. Shortlisted applicants will be invited to the Hackatren pre-hack day on June 30, where IT experts and mentors from LRMC will orient the participants in preparation for the main Hackatren event.

Qualified teams will move on to the Hackatren event on July 14-15, 2018.

LRMC is a joint venture company of Metro Pacific Investments Corp.’s Metro Pacific Light Rail Corp., Ayala Corp.’s AC Infrastructure Holdings Corp. and the Philippine Investment Alliance for Infrastructure’s Macquarie Infrastructure Holdings (Philippines) PTE Ltd.

LRMC  assumed operations and maintenance of LRT-1 in September 2015 through a 32-year concession agreement with the Department of Transportation and the Light Rail Transit Authority.

Since 2015, LRMC has spent P8 billion to  accelerate improvements on Southeast Asia’s oldest railway system.

The projects include the replacement of the 26-kilometer rails and parapets, the light rail vehicle  rehabilitation program and station improvement.

LRMC has also introduced and developed IT solutions that streamlined business processes which contributed to increased average daily trips by 9.7 percent  from 505 trips in 2016 to 554 trips in 2017, and zero failure notice on train availability, punctuality and reliability in the first quarter of 2018.

Tuesday, June 19, 2018

BC Updates

There's a new hotel opening soon in downtown BC on top of the Novo Department Store>>Its called Meaco Royal Hotel. It has many branches already including one in Lipa. Similarly, a few small hotels are sprouting in the bypass road near BatSU.


Meanwhile, the new 5F Toms Commercial Bldg is almost leased out at least the first 2 floors from my observation having BDO, Goldilocks, Banko, Julies Bakeshop, a Clothing store then Elorde Boxing Gym.


The former 4F Kabukiran Restaurant is undergoing renovation to be converter to Mixed used commercial building. The 3F commercial building beside Taza Mia Plaza is almost leased out as well. Notable tenants are Mr. Kimchi and a Fitness Gym as well.


In Pallocan Area, a new building for the Integrity Net is under construction in front of the Mercury Drug. A new commercial building is opened also in front of Hall of Justice. Notable tenants are Generika Drugstore and more of local shops. The commercial strip beside Casa Blanca have now additional tenants with San Mig Station, Nuat Thai and a Thai Restaurant.


Downtown BC is still catching up with the developments in its suburbs. While Diversion and Pallocan are high growth areas, Downtown is still BC's most important CBD for now.

'Fast and sure': Metro Manila Subway groundbreaking set in Q4

The government can break ground for the capital’s first ever subway in the fourth quarter of this year, illustrating how President Rodrigo Duterte is moving "fast and sure" on his infrastructure program, one of his economic managers said Tuesday.

The Metro Manila Subway, which is partly-funded by Japan, will be partially operational in 2.5 to 3 years, Transportation Secretary Arthur Tugade told an economic briefing in Tokyo.

"Before, sir, it's 'talk, talk, talk' and 'plan, plan, plan.' Now, it's 'build, build, build,'" Tugade said in the forum, which was aired on the budget department's Facebook page.

The government "advanced" the schedule of infrastructure by as much as 6 months, Tugade said. Up to 1,900 kilometers of rail will be constructed under the President's term, including one in Mindanao, he said.

The Philippines in March signed a P51.3-billion loan agreement with Japan for the Mega Manila Subway, which will connect Quezon City to the Ninoy Aquino International Airport and the FTI Terminal in Taguig City.

It is one of the flagship projects under the President's P8 trillion list, which also includes airports and roads.

Budget Secretary Benjamin Diokno told the same briefing that the government had "licked the problem of underspending," which held back infrastructure development in the past.

From January to April, government spending rose 29.4 percent, compared to the same period in 2017. Infrastructure spending alone rose 47.5 percent, Diokno said.

Actual spending of P782 billion in the first quarter exceeded the programmed P755.9 billion, a first in the country's history, he said.

30 infra projects to start this year

Thirty flagship infrastructure projects worth a total of P1.04 trillion under the ambitious “Build, Build, Build” program will start implementation this year and are seen creating up to 820,000 jobs, the state planning agency National Economic and Development Authority said.

Socioeconomic Planning Secretary Ernesto M. Pernia said that “to fully maximize gains from ‘Build, Build, Build,’ the Philippine labor market should be ready to meet the infrastructure program’s requirements.”

As of June 13, 30 of the 75 projects under the “Build, Build, Build” were targeted to begin implementation this year.

Expected to be rolled out in 2018 are the P14.1-billion upgrading/rehabilitation of the Navotas Fish Port Complex); P44.6-billion North Luzon Expressway East; P4.7-billion Pasacao-Balatan Tourism Coastal Highway; P2.3-billion Camarines Sur Expressway Project (San Fernando-Pili Section); P56.6-billion Cebu-Bohol Link Bridge; P10-billion Road Network Development Project in Conflict-Affected Areas in Mindanao; P25.6-billion Davao City Expressway Project; P4.8-billion East Dalton Bypass Project; P4-billion Quezon-Bicol Expressway; and P22.7-billion Ilocos Norte Irrigation Project, Stage 2.

Also for implementation this year are the P9.9-billion New Cebu International Container Port; P9.4-billion Clark International Airport Expansion Project; the Nationwide Fish Ports Project (Package 3); P124.1-bilion Philippine National Railways South Commuter Line (Tutuban-Los Baños); P175.3-billion PNR South Long-Haul (Manila-Bicol); P356.9-billion Metro Manila Subway Project-Phase 1; P2.3-billion New Bohol Airport; P35.3-billion Mindanao Rail Project (Phase 1); P4.6-billion Binondo-Intramuros Bridge; and P1.4-billion Estrella-Pantaleon Bridge.

Likewise to be implemented in 2018 are the P4.9-billion Panguil Bay Bridge Project; P12.2-billion Kaliwa Dam Project; P19.4-billion Panay River Basin Integrated Development Project; P1.8-billion Clark Green City Government Center; P850-million Clark Green City Government Center; P3.3-billion Clark Green City Mixed-Income Housing; P4.4-billion Chico River Irrigation Project; P46-billion Metro Manila BRT-Phase 3 (BGC-Naia Segment); P4.8-billion Metro Manila BRT-Line 1 (Quezon Avenue), and P37.8-billion Metro Manila BRT-Line 2.

Construction of LRT Cavite extension to start in October

Light Rail Transit Line 1 (LRT-1) operator Light Rail Manila Corp. (LRMC) said it is on track to begin the construction of the first package of the Cavite extension by October.

In an interview with reporters, LRMC Operations Director Rodrigo P. Bulario said, “The first package, konti na lang ang natitira [very little is left]. So we can start on October Kasi binigay na yung right of way nila eh [Because the right of way has already been given].”

He said less than five percent of the right of way for the first package needs to be obtained.

As part of its concession agreement with the Department of Transportation (DoTr), LRMC is set to extend the LRT-1 Baclaran station to Cavite. Eight stations are set to be built, but the construction is divided into three phases, the first covering five stations from Redemptorist to Dr. Santos in Sucat. — Denise A. Valdez

Work on LRT-1 Cavite extension to start in Oct.

LIGHT RAIL Transit Line 1 (LRT-1) operator Light Rail Manila Corp. (LRMC) said it expects to begin the construction of the first phase of the Cavite extension project by October.

“The first package, konti na lang ang natitira [very little is left]. So we can start on October. Kasi binigay na yung right of way nila eh [Because the right of way has already been given],” LRMC Operations Director Rodrigo P. Bulario told reporters on Monday.

Mr. Bulario said less than 5% of the right of way for the first phase needs to be obtained.

As part of its concession agreement with the Department of Transportation (DoTr), LRMC will extend LRT-1 from Baclaran station to Niog, Bacoor City, Cavite. Eight stations will be built as part of the extension: Redemptorist, NAIA Avenue, Asia World, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote and Niog.

The construction of the 11.7-kilometer railway is divided into three packages, the first one covering the first five stations from Redemptorist to Dr. Santos in Sucat.

LRMC President and Chief Executive Officer Juan F. Alfonso told reporters in May that the construction of the Cavite extension will take four years.

HACKATREN

At the same time, LRMC launched a crowdsourcing program to encourage information technology (IT) specialists to propose ways to improve the customer experience at the LRT-1.

In a press conference in Taguig, LRMC head of Information Management and Technology Randy S. Sac bared the details of the hacking marathon called “Hackatren,” organized in partnership with the Hub of Innovation for Inclusion (HiFi) of the De La Salle-College of St. Benilde (DLS-CSB).

IT students and professionals are invited to form teams of three to four members, who will pitch a digital solution to make the commuting experience of passengers “more enjoyable and efficient.”

Mr. Sac said LRMC will work with the top three winners to put their proposals into reality, with the help of HiFi.

Aside from this, the three winning teams will also win a cash prize of P100,000, P50,000 and P25,000 each.

Mr. Sac noted the goal of the initiative is to find out what passengers experience during their commute and find solutions that they may adopt to improve the train system.

Interested participants may sign up for the competition until June 30, which is also the “Pre-Hack Day” of Hackatren. The top 15 teams will be invited to the actual Hackatren event on July 14 and 15, on which the winners will also be announced.

LRMC is the consortium of Ayala Corp., Metro Pacific Light Rail Corp., of Metro Pacific Investments Corp. and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd.

Metro Pacific Investment Corp. is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Denise A. Valdez

LRT-1 extension project construction to start in October

The construction of the first phase of the Light Rail Transit Line 1 (LRT-1) extension project is set to start in October this year.

The settlement for the right of way for the railway extension project is now 95 percent completed, according to private operator Light Rail Manila Corporation (LRMC).

“Konti na lang ang natitira so actually we can start by October kasi binigay na yung right of way eh," LRMC Operations Director Rodrigo Bulario said in an interview with reporters on the sidelines of the launching of the Hackatren event Monday in Taguig City.

(There are only a few things that are needed to be settled so actually we can start by October because the right of way was already given.)

"Continuous na yun, parang mobilization is October then continuous na yun until construction," he added.

(This is now continuous, the mobilization is October that will be continuous until construction.)

The first phase of the LRT-1 extension project covers the Redemptorist, Manila International Airport (MIA), Asiaworld, Ninoy Aquino, and Dr. A. Santos stations.

The LRMC expects the LRT-1 Cavite extension project to reduce travel time from Baclaran to Bacoor by 30 minutes from the current one and a half hours during rush hours.

The Cavite extension, measuring 11.7 kilometers in length, will consist of elevated guideways throughout the majority of the alignment.

The only at-grade guideway section shall be located in Zapote, consisting of the Satellite Depot and New Station. It will connect to the existing Baclaran station and will have eight new stations: Redemptorist, NAIA Avenue, Asia World, Ninoy Aquino, Dr. Santos, Las Pinas, Zapote, and Niog.

Dr. Santos, Zapote, and Niog stations will provide transfers to other modes of transportation.

The railway operator projects LRT-1 to serve around 700,000 to 800,000 passengers daily once the extension is completed by 2021. (PNA)

Contractor Vows Oct 2018 Start for Prep Works on LRT-1 Project That Will Cut Bacoor-Baclaran Travel to 30 Minutes

The private-sector consortium carrying out the project to extend the Light Rail Transit Line 1 (LRT-1) to Cavite province south of Metro Manila has vowed to start pre-construction preparations by October 2018. It hopes to begin on-site construction works by early next year.

Rodrigo Bulario, operations director of Light Rail Manila Corp. (LRMC), said company’s subcontractors would start mobilizing in four months, according to a report in Inquirer.net on Monday, June 18.

The LRMC is a consortium of Ayala Corp., Metro Pacific Light Rail Corp. and Macquarie Infrastructure Holdings. The consortium won the bidding to undertake the public-private partnership (PPP) project at the cost of Php65 billion. LRT-1 is the country’s oldest elevated train system.

Officials of the company earlier announced that construction works would commence later this year after most of the segments of the right of way (ROW) needed by the project have been turned over by the government to LRMC.

“Actually we can start [construction preparation] by October kasi binigay na ‘yung right of way ng iba eh (because the right of way for other [segments needed by the project] have already been turned over,” Bulario was quoted by Inquirer.net as saying. “Mobilization is October then continuous na ‘yun until construction.”

In government infrastructure projects, ROW means the piece of property used or required for the project to start. The process of acquiring ROW is done before the mobilization phase, the time when the resources, manpower and plans needed before the actual construction are finalized.

The project, which is expected to be completed by 2021, is awaited by hundreds of thousands of people who commute daily from their homes in Cavite to factories, offices and schools in Metro Manila.

The Php64.9-billion project is expected to accommodate around 410,000 passengers every day in its opening year, with completion targeted at the last quarter of 2021.

LRMC President and CEO Juan Alfonso said the project may cut the travel time between Baclaran in Parañaque City to Bacoor in Cavite to only 30 minutes from the usual one and a half hour land travel during rush hour, according to report by GMA News Online.

“From Baclaran to Sucat, it will be only 15 minutes; Baclaran to Zapote, 20 minutes," Alfonso said, according to the report.

The latest announcement comes months after LRMC tapped French rail experts Bouygues Travaux Publics and Alstom Transport Private Ltd. to help in the construction of the LRT-1 extension project in February.

According to the Public-Private Partnership Center website, the LRT-1 Cavite extension involves the construction of an 11.7-kilometer railway, 10.5 km of which will be elevated. The existing Baclaran Station will be extended to Bacoor, Cavite with the last stop at Niyog Station.  A total of eight stations will be added for the extension project starting from the Aseana business district in Pasay City.

*****

Elyssa Christine Lopez is a staff writer of Entrepreneur.com.ph.

LRT-1 extension project construction to start in October

The construction of the first phase of the Light Rail Transit Line 1 (LRT-1) extension project is set to start in October this year.

The settlement for the right of way for the railway extension project is now 95 percent completed, according to private operator Light Rail Manila Corporation (LRMC).

Konti na lang ang natitira so actually we can start by October kasi binigay na yung right of way eh,” LRMC Operations Director Rodrigo Bulario said in an interview with reporters on the sidelines of the launching of the Hackatren event Monday in Taguig City.

(There are only a few things that are needed to be settled so actually we can start by October because the right of way was already given.)

Continuous na yun, parang mobilization is October then continuous na yun until construction,” he added.

(This is now continuous, the mobilization is October that will be continuous until construction.)

The first phase of the LRT-1 extension project covers the Redemptorist, Manila International Airport (MIA), Asiaworld, Ninoy Aquino, and Dr. A. Santos stations.

The LRMC expects the LRT-1 Cavite extension project to reduce travel time from Baclaran to Bacoor by 30 minutes from the current one and a half hours during rush hours.

The Cavite extension, measuring 11.7 kilometers in length, will consist of elevated guideways throughout the majority of the alignment.

The only at-grade guideway section shall be located in Zapote, consisting of the Satellite Depot and New Station. It will connect to the existing Baclaran station and will have eight new stations: Redemptorist, NAIA Avenue, Asia World, Ninoy Aquino, Dr. Santos, Las Pinas, Zapote, and Niog.

Dr. Santos, Zapote, and Niog stations will provide transfers to other modes of transportation.

The railway operator projects LRT-1 to serve around 700,000 to 800,000 passengers daily once the extension is completed by 2021.

LRMC: Phase 1 of LRT 1 Cavite Extension only 95% complete

TRAIN operator Light Rail Manila Corp. (LRMC) has yet to receive a single portion of the right-of-way (ROW) for the construction of the Cavite Extension of the Light Rail Transit (LRT) Line 1.

LRMC Operations Director Rodrigo P. Bulario said in a chance interview that the ROW acquisition for the first phase of the extension is only 95-percent complete.

This means the government cannot deliver the said easement to the company, as based on the concession agreement, the acquisition rate has to be 100 percent before delivery.

“The acquisition of the ROW for the first phase is less than 5-percent incomplete,” Bulario said.

All the stations located in Parañaque City—Redemptorist, MIA, Asiaworld, Ninoy Aquino, Dr. Santos—compose the first phase of the Cavite Extension.

The company aims to start constructing the first phase of the extension by October, but with the rate of acquisition of easement, Bulario believes the company may start with the so-called mobilization.

“We will start mobilization in October, which means we will assemble machines and materials in the area,” he said.

Actual construction may start “early next year,” he noted.

The company broke ground for the 11.7-kilometer extension of the oldest overhead railway system in Asia in February 2017.

Targeted for completion in about four years after the delivery of easement, the 11.7-kilometer Cavite extension will connect into the existing system immediately south of the Baclaran Station and run in a generally southerly direction to Niog, Bacoor City, Cavite.

It will consist of elevated guideways throughout the majority of the alignment, except for the guideway section at Zapote, which will be located at grade.

Eight new stations will be provided with three intermodal facilities across Pasay City, Parañaque City, Las Piñas City and Bacoor City.

The new stations will be accessible to and from nearby community facilities, such as shops, schools, stadium and park, and will be located to suit passenger-flow routes from residential areas.

Pedestrian access to all new stations will be direct, safe and easy. Details, such as lighting to distinguish access points, pedestrian-cross striping and curb cuts for handicapped access, will be provided.

LRMC, controlled by Metro Pacific Investments Corp. and Ayala Corp., has invested P7.5 billion in the railway system so far since it took over in 2015.

Monday, June 18, 2018

Prep for LRT-1 extension to start in October 2018

Preparations for the extension of the Light Rail Transit line 1 (LRT-1) to Cavite area would start by October 2018, an official from the Light Rail Manila Corporation (LRMC) said on Monday.

LRMC Operations Director Rodrigo Bulario said that the first phase for the extension of LRT-1 is nearly complete.

“Onti nalang ang natitira (There’s a little bit more ironing out to do), so actually we can start by October kasi binigay na ‘yung right of way ng iba eh (because we’ve been given right of way by some),” he said.

Citing the data from the Department of Transportation, less than 5 percent is needed to start the mobilization in the area.

He added that the actual construction of LRT-1 extension on the streets would start early next year.

“To make the construction faster, may mga (there are) state-of-the-art procedure eh,” he said.

“Continuous na ‘yun, parang mobilization is October then continuous na ‘yun until construction,” he added. /je


Read more: http://newsinfo.inquirer.net/1001835/prep-for-lrt-1-extension-to-start-in-october-2018#ixzz5IlxBXbaD 
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LRT Cavite extension on track for October completion

Light Rail Transit Line 1 (LRT-1) operator Light Rail Manila Corp. (LRMC) said it is on track to begin the construction of the first package of the Cavite extension by October.

In an interview with reporters, LRMC Operations Director Rodrigo P. Bulario said, “The first package, konti na lang ang natitira [very little is left]. So we can start on October. Kasi binigay na yung right of way nila eh [Because the right of way has already been given].”

He said less than five percent of the right of way for the first package needs to be obtained.

As part of its concession agreement with the Department of Transportation (DoTr), LRMC is set to extend the LRT-1 Baclaran station to Cavite. Eight stations are set to be built, but the construction is divided into three phases, the first covering five stations from Redemptorist Road to Dr. Santos in Sucat.

MRT-3 rehab: DOTr extols P17-B loan; still no details

The Dept. of Transport sent a lengthy reply to my May 23 piece, “Why Is P17-B MRT-3 Rehab Double Sumitomo’s Offer?” It is borrowing ¥34.48 billion (P17 billion) from Japan International Cooperation Agency to rehabilitate and maintain MRT-3. Work will take 31 months, DOTr said, plus 12-month defect liability period (warranty). Scope: trains, power supply, catenaries, radio, CCTV, PABX/public address, signaling, tracks, road rail vehicles, depot equipment, elevators, escalators, other station equipment.

There was no itemization of the P17 billion, though. Transparency is a must. Filipinos, even non-MRT-3 riders, would be repaying the loan.

JICA and DOTr stated preference for Sumitomo Corp. as service provider. The Japanese giant had erected MRT-3 in 1998-1999, and maintained it in 2000-2012, under private owner-builder Metro Rail Transit Corp. (MRTC).

The commuter railway began to rot in 2012. Sumitomo had been replaced by a series of three inept but well-connected outfits. MRT-3 needed restoring to previous safety and reliability. MRTC in Dec. 2014 relayed to DOTr a plan by its old Sumitomo team to do it in 26 months, no need to shut down the rails. Scope: power supply, catenaries, radio, CCTV, PABX/public address, signaling, track replacement, Unimog emergency vehicles, station facilities, elevators, escalators, depot equipment, overhaul of 73 coaches, automatic fare collection system. Price: $98 million for rehab, $53 million for maintenance, total of $151 million (conversion: roughly P7.5 billion).

Same work but nearly P10 billion less than the P17 billion that DOTr would announce four years later.

MRTC reiterated Sumitomo’s plan to DOTr in 2016 and 2017. Fund could come from fare collections. Sumitomo can be paid through MRTC, as build-lease-transfer franchisee till 2025. Sumitomo’s reentry would return the single point of responsibility, lost in the addled blaming under the three inept firms. A work schedule was submitted preparatory to technical meets. DOTr did not seek details of Sumitomo’s plan.

*      *      *
A good part of DOTr’s rejoinder, nothing to do with my article, dwells on its beef with MRTC head Robert Sobrepeña. Their disputes over the BLT deal are under arbitration in Singapore. Parties are bound by confidentiality; any breach can cause defeat, DOTr insiders caution. I’ll skip that part, lest it hurt the government that is spending millions of pesos on foreign lawyers. DOTr, though, has circulated to all media its rejoinder (hala, lagot!). For fairness and balance here’s what pertains to my column:

“DOTr addresses point-by-point Mr. Bondoc’s statements:

“1. Mr. Bondoc: ‘Why is DOTr borrowing P17 billion from Japan ... despite giant Sumitomo Corp.’s offer of only P7.5 billion ... to do the work?’

“DOTr Reponse: First, DOTr is borrowing from Japan finally to fix MRT-3 with a comprehensive, single point of responsibility solution, by a highly qualified, experienced provider, backed by the government of one of the leading railway powerhouse countries in the world. Second, Sumitomo Corp. has no offer to DOTr to do the work for P7.5 billion. Mr. Bondoc makes it appear that the Sobrepeña-MRTC proposal is an offer from Sumitomo. It is not.

“The Sobrepeña-MRTC proposal consists merely of 5 pages and a series of 1- to 3-page letters (essentially containing the same thing). The Sobrepeña-MRTC proposal does not refer to a P7.5-billion cost, and it does not refer to an offer from Sumitomo. In fact, in its own letters to DOTr, MRTC states that it is still ‘in discussions with Sumitomo Corp.’ There is no offer from Sumitomo to undertake the scope of the JICA-financed MRT-3 rehabilitation-maintenance, and there is no offer from Sumitomo to do it for P7.5 billion.

“2. Mr. Bondoc: ‘[It] was sent to Malacañang in 2016, and to Tugade in 2016 and 2017. Sumitomo and MRTC have not received any reply.’

“DOTr Response: Perhaps Mr. Bondoc can quick-dial Mr. Sobrepeña to ask about MRTC’s letter to DOTr dated 15 Sept. 2017 stating: ‘This is in reference to the letter of the DOTr dated 31 Aug. 2017 conveying the DOTr’s denial of the recent proposal of MRTC to rehabilitate and maintain the MRT-3 System [i.e. the Sobrepeña Option].’ Following DOTr’s written denial of the Sobrepeña-MRTC proposal on 31 Aug. 2017, DOTr reiterated the denial in another letter dated 11 Oct. 2017.

“3. Mr. Bondoc: ‘Last week’s DOTr press release stated the following rehab works, with no corresponding amounts to justify the P17-billion total...’

“DOTr Response: The indicative terms, scope, and cost for the JICA-financed MRT-3 rehabilitation-maintenance is the product of several layers of diligence employed by DOTr. Measures taken by DOTr to ensure that it is responsibly utilizing taxpayers money include:

“- Conduct of a comprehensive 2-month system inspection of MRT-3 by a 150-man JICA study team from Feb. to Mar.;

“- Review by JICA headquarters’ railway, finance, and economic experts in the course of a 2-month Fact Finding and Appraisal Mission in Apr. to May; and

“- Further review by a team of railway experts from Asian Development Bank and Australia Aid.

“Meanwhile, the Sobrepeña-MRTC Option, which Mr. Bondoc refers to as ‘Sumitomo’s offer,’ appears to be based on nothing more than a 5-page proposal signed by Mr. Sobrepeña and MRTC president Frederick Parayno.

“(Signed) Goddes Hope Oliveros-Libiran, Director for Communications”

*      *      *

Note: There’s still no breakdown of the P17 billion for each work item in DOTr’s reply. Where’s transparency? Train experts in the country and abroad can tell the price fairness if those are itemized.

JICA likely consulted Sumitomo. Hence, the same work scope in 2018 as in 2014, and terms like “single point of responsibility.” Remnant MRT-3 overseers had broken that rule in contracting the inept firms starting 2012, and further subcontracting to seven groups in 2015.

Rebutting DOTr’s rejoinder, MRTC said Saturday that Sumitomo did turn in a $150-million offer in 2014 and 2016 valid till today.

*      *      *

Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).

Gotcha archives on Facebook: https://www.facebook.com/pages/Jarius-Bondoc/1376602159218459 , or The STAR website https://www.philstar.com/columns/134276/gotcha


Read more at https://www.philstar.com/opinion/2018/06/18/1825557/mrt-3-rehab-dotr-extols-p17-b-loan-still-no-details#bWLklGHXuUUBtumB.99

Friday, June 15, 2018

NLEX Harbor Link Segment 10: Changing the City Landscape to Bring Development to Regions


A growing optimism has spurred the industry sector as various infrastructure projects have continued to pave the path towards economic growth.

The anticipation of major road infrastructure, such as the NLEX Harbor Link Segment 10, is drawing further new investments while expanding economic opportunities in the countryside.

Central Luzon, for instance, has been the country’s second fastest growing region, garnering an increase of 9.5 percent in gross regional domestic product in 2016, according to the National Economic and Development Authority (NEDA).  Such economic vibrancy has been stimulated by a variety of factors, such as the ever-expanding network of efficient and modern expressways.

Consistent with the vision of the government’s massive infrastructure plan — the “Build Build Build” program — the NLEX Harbor Link Segment 10 is among the high impact projects that are seen to boost the productive capacity of the economy, create jobs, increase incomes, and ease traffic congestion in Metro Manila.

“We’re very excited that the vision of President Rodrigo Duterte for the Philippines is quickly becoming a reality, and part of it is the decongestion of Metro Manila traffic, which is one of the major thrusts of the Build Build Build,” said Public Works and Highways Secretary Mark Villar in his speech during the progress inspection of the NLEX Harbor Link Segment 10 in Samson Road, Caloocan City.

NLEX Corporation President and CEO Rodrigo Franco affirms the tollway company’s commitment as a “critical enabler” for industries to grow, and assures NLEX Harbor Link Segment 10 motorists that “they will get the same seamless, safe, and comfortable travel experience already available in the NLEX.”

Driving commerce

The NLEX Harbor Link Segment 10, an 8.25-kilometer, 4-lane elevated expressway traversing MacArthur Highway in Karuhatan, Valenzuela City and eventually reaching Radial Road 10 in (R-10) Navotas City, will primarily cater to the transport logistics industry that operates between the port of Manila and Central and Northern Luzon provinces.

Freight forwarders, logistics services providers, truckers, and terminal operators — who are currently affected by the congestion through the major streets of Manila — may soon benefit from the direct access to NLEX from the R10 and vice-versa. Cargo trucks shall hence be spared from the truck ban and will subsequently experience quicker turn around.

Faster travel means more trips for cargo trucks, lesser trucking costs, and will even lead to on-time delivery of goods to different inland destinations. With a high level of efficiency in the transport logistics, a boost in the trade performance is seen to take effect in the coming years.

Spurring economic activities

It can be recalled that in 2017 the Japan International Cooperation Agency (JICA), reported that traffic congestion in Metro Manila results in an estimated economic productivity loss of around P3.5 billion a day and which will increase to about P6.0 billion per day by 2030 if no interventions would take place.

With the NLEX Harbor Link Segment 10 nearing its completion, one can already see a light at the end of the tunnel. Further, as the road network is crucial in creating an enabling business environment, the new expressway will also spur economic activities in the CAMANAVA (Caloocan, Malabon, Navotas, Valenzuela) area.

Nearby communities in the NLEX Harbor Link Segment 10 are provided with more opportunities to bring them into the mainstream of progress, such as increasing values of real estate and rising employment with about 10,000 jobs generated even during the construction phase alone.

Cuts travel time by 50%

“We are optimistic that through the help of our partners in government, we will be able to finish the project in October this year to further deliver seamless and safe travel to our motorists,” said NLEX Corporation Senior Vice President for Tollways Development and Engineering Raul Ignacio.

With this alternative access to Central and Northern Luzon, we can expect improvement in traffic along major thoroughfares in Metro Manila and daily users can head straight to the NLEX bypassing EDSA and the Balintawak Toll Plaza altogether.

Travelers from Manila to North Luzon and vice-versa may anticipate a shorter travel time as the elevated expressway of Harbor Link has direct routes between the North Luzon, CAMANAVA, and Northern Manila areas. It also permits an average speed of 80kph, which cuts travel time by almost half.

Consequently, driving from NLEX Valenzuela to R10 in Navotas may only take 11 minutes from the usual travel time of 23 minutes (via Balintawak-Monumento), while driving From NLEX to Navotas via Cloverleaf Balintawak-A. Bonifacio/C3 may soon take only 13 minutes as compared to the current travel time of 26 minutes.

Much improved road safety

Motorists and the riding public are also assured of high-quality NLEX pavement that they have been used to when regularly traveling between Manila and the northern provinces of Luzon.

The NLEX Corporation — due to better road pavement and tighter traffic management — is geared to achieve much lower road incidents.

As the government’s PPP partner, NLEX Corporation provides fast, safe, and efficient transport infrastructure in the Philippines.

Starting in 2005 when it commercially completed the rehabilitation of the decades old NLEX from Balintawak to Santa Ines, the tollway company will showcase once again through the NLEX Harbor Link Segment 10 that brand of quality in exceeding the expectations of the motorists and the riding public.

Thursday, June 14, 2018

No offer from Sumitomo to rehabilitate MRT, DOTr clarifies

Metro Rail Transit-3 builder and former maintenance provider Sumitomo Corp. has no offer to the government to rehabilitate the overstretched rail system, the Department of Transportation said on Thursday.

DOTr last month said the government and Japan International Cooperation Agency, or JICA, signed the final details on the estimated project cost, scope of works and schedule of the MRT rehabilitation.

Based on the discussions, upgrading the MRT, which is estimated to cost ¥34.480 billion (P16.985 billion), will take 43 months.

In a statement, the DOTr clarified that Sumitomo did not submit any proposal to undertake the scope of the JICA-financed MRT-3 rehabilitation project.

The Transportation department issued the statement in response to “some erroneous claims.”

“Sumitomo Corp. has no offer to DOTr... contrary to some articles circulating online and on print media,” it said.

Reports of MRT train breakdowns have become as regular as the weather. In 2017, the shabby metro rail system, which serves thousands of passengers each day, reportedly suffered at least 500 disruptions.

Last year, the government terminated its contract with Busan Universal Rail Inc., the MRT-3 service provider, due to alleged poor performance. The DOTr at the time said the joint venture of Sumitomo and Mitsubishi Heavy Industries is being considered as it was involved with the train system in the past.

Meanwhile, Metro Pacific Investments Corp.’s offer to rehabilitate the MRT-3 is expected to move forward by the end of the year, Transport Secretary Arthur Tugade recently said.

MPIC unit Metro Pacific Light Rail Corp. was granted original proponent status by the DOTr in 2017 for the P12.5 billion proposal to rehabilitate, operate and maintain the MRT-3 for 30 years.

No Sumitomo rehab proposal for MRT-3 — Transport dep’t

THE Department of Transportation (DoTr) clarified on Wednesday that Sumitomo Corp. did not offer to take charge of the Metro Rail Transit Line 3 (MRT-3) rehabilitation, though the Japan International Cooperation Agency (JICA) remains the source of funding for the project.

“To reiterate, there is no offer from Sumitomo Corp. to undertake the scope of the JICA-financed MRT-3 Rehabilitation and Maintenance Project, and much more, there is no offer from Sumitomo Corp. to do it for P7.5 billion,” it said in a statement.

DoTr issued the statement in response to “erroneous claims” that Sumitomo Corp. is offering to rehabilitate the commuter rail system through Metro Rail Transit Corp. (MRTC) headed by Robert John L. Sobrepeña.

MRTC was formerly in charge of the construction and maintenance of MRT-3. It submitted a rehabilitation proposal to DoTr twice last year, in August and October, but both were rejected.

“Aside from being signed by Mr. Sobrepeña and MRTC President Frederick C. Parayno, and claiming to have been based on ‘discussions with Sumitomo Corp.,’ the Sobrepeña- MRTC Option does not appear to have been prepared by any railway expert,” DoTr said.

It also expressed its faith in JICA’s processes, as the aid agency has conducted a two-month review of the MRT-3 to identify the cost, scope and schedule of the rehabilitation. It said in May that the project will cost P16.985 billion and will take 43 months.

“The DoTr maintains that it is borrowing from Japan to finally, and once and for all, fix MRT-3 with a comprehensive, single point of responsibility solution, delivered by a highly qualified and highly experienced provider, backed by the government of one of the leading railway powerhouse countries in the world,” it said.

Last year, Metro Pacific Investments Corp. (MPIC) and Ayala Corp. submitted an unsolicited proposal to take over the MRT-3. Transportation Secretary Arthur P. Tugade said last week that the government will decide by year’s end about granting the consortium original proponent status (OPS).

If the consortium is granted OPS, the proposal will still have to be approved by the National Economic and Development Authority (NEDA) board and then subjected to a Swiss challenge. Under the Swiss challenge, other companies may submit counter-proposals which the original proponent has the option to match.

Transportation Undersecretary for Railways Timothy John R. Batan told reporters recently that MPIC is currently aligning the terms of its proposal to the terms of the JICA-funded rehabilitation.

“What we are doing with respect to the MRT-3 O&M unsolicited proposal is making sure that it harmonizes with the scope of the JICA rehab. We do not want an overlap, largely because we don’t want two different parties doing the same things,” he said. — Denise A. Valdez

DOTr bats for Japan ODA option to solve MRT woes

By Emmie V. Abadilla

The Department of Transportation (DOTr) yesterday batted for  a government-to-government (G2G) Japan Official Development Assistance (ODA) solution for the woes of the Metro Rail Transit (MRT) 3 and lambasted the private sector alternative as unsubstantial – something “not based on any comprehensive inspection” of the railway system in question.

In its “briefer” issued to the press yesterday, the DOTr pointed out that it has already twice denied the private sector option to solve MRT 3’s problems proposed by Robert John L. Sobrepeña through his MRT Holdings, Inc. II (MRTH II) and subsidiary Metro Rail Transit Corporation (MRTC).

“It is a wonder why some appear to have been consistently selling the Sobrepeña-MRTC Option despite the DOTr’s advance efforts to fix MRT-3 with a comprehensive, single point-of-responsibility solution to be delivered by a highly qualified and highly-experienced provider, backed by the government of one of the leading railway powerhouse countries in the world,” the DOTr stated in its briefer.

The state transport agency stressed that “MRTC had no other railway development experience other than MRT-3.”

On top of this, the DOTr also underscored “Sobrepeña’s track record from his failed College Assurance Plan (CAP) scheme and controversy-ridden Camp John Hay Development. Corp. (it appears that CJHDC still refuses to pay billions in debt intended for the Armed Forces, through BCDA).”

“It is a wonder why some appear to have blind allegiance to the 5-page proposal underlying the Sobrepeña-MRTC Option proposed by Sobrepeña through MRTH II and MRTC, private companies involved in the earlier construction and maintenance of MRT-3.”

MRTC built the P35.6-billion MRT 3. To pay for the construction cost, MRTC used P10 billion of its own money and borrowed P25.6 billion from various lenders, payable over 10 years, at interest rates of 2.8%, 7.52%, and 9%.

Filipino taxpayers have been paying, and will continue to pay, MRTC a 15% return on the P10-billion used in MRT-3. Over 25 years, Filipino taxpayers will have paid MRTC a total of P126.4 billion for its P10 billion equity.

As of early 2018, Filipino taxpayers have already paid MRTC close to P73.7 billion and will continue to pay more than P52.7 billion up to 2025, according to the DOTr.

Aside from coughing up P126.4 billion to MRTC for its P10 billion equity in MRT-3, Filipino taxpayers have already fully paid the P25.6 billion that the borrowed, plus interest of P6.9 billion as of 2010.

In addition, Filipino taxpayers have been paying, and will continue to pay, P2.2 million per month for MRTC’s staffing and administration costs.

As of early-2018, Filipino taxpayers have paid P463.5 million for MRTC’s staffing and administration costs, and will continue to do so up to 2025.

Filipino taxpayers also pay for MRTC’s taxes. As of early-2018, Filipino taxpayers have paid MRTC R27.1 billion as reimbursement for MRTC’s taxes and will continue to reimburse MRTC for its taxes up to 2025.

In total, after investing P35.6 billion to build MRT-3, MRTC already received P133.7 billion total. By 2025, the company stands to receive P200 billion in return for its P35.6-billion investment.

Filipino taxpayers would have paid MRTC the equivalent of almost 6 MRT-3’s, according to the DOTr.

Despite all these, MRTC’s affiliate, MRT DevCo, has refused to pay DOTr almost P2.3 billion as of mid-2015 for leasing out kiosks and advertisement spaces in MRT-3.

MRTC and DOTr are still squabbling on the interpretation of the Build Lease Transfer (BLT) Agreement for MRT-3, as well as MRTC’s performance of its obligations.

There are ongoing cases between MRTC and DOTr, as well as between MRTC and various local governments, both in Singapore and in local courts.

Now, the Sobrepeña-MRTC Option for solving MRT 3’s problems is largely based not just on continuing, but even expanding, what MRTC gets under the BLT Agreement, such as MRTC receiving MRT-3’s fare revenues of almost P3 billion per year up to 2040, without the benefit of any bidding, or even a Swiss Challenge.

The Sobrepeña-MRTC Option also involves an unspecified schedule of fare increases, which will increase MRT-3 fares from the current maximum of P28.00 to up to almost P40.00.

This involves giving to MRTC up to more than P10 billion per year in fare revenues over a period extending to 2040, again, without the benefit of any bidding, or even a Swiss Challenge.

Notably, the Sobrepeña-MRTC Option also involves extending onerous terms of the BLT Agreement beyond 2025, and into 2040.

For example, Sobrepeña-MRTC Option requires Filipino taxpayers to continue reimbursing MRTC for all its taxes.

The DOTr denied this option twice, first in August, 2017 and again in October, 2017.

On the other hand, the Japan ODA option costs P11.6 billion for the railway rehabilitation and P5.5 billion for the maintenance.

Rehabilitation includes restoring MRT-3 to its design operating condition, and will take 26 months. This will “fix everything that needs to be fixed” in MRT-3.

Maintenance, includes day-to-day maintenance, preventive maintenance, corrective maintenance, and the complete general overhaul of MRT-3’s 72 cars, which were supposed to have been done in 2014-2016 (MRT-3’s terminated maintenance contractor, BURI, failed to do the overhaul).

Fixing MRT: Japan vs Sobrepeña plan

Much has been written about the “Sobrepeña-MRTC option” for rehabilitating the ailing MetroRail Transit Line-3 on EDSA. For balance, we are running excerpts from a Department of Transportation briefer comparing that offer with the “Japan ODA option” that the government seems to favor.

The Sobrepeña-MRTC offer was made by businessman Robert John L. Sobrepeña through MRTH II and MRTC, which were involved in the earlier construction and maintenance of MRT-3. The DoTr rejected the offer twice, in August and October 2017, but the proponent persists.

The DoTr is pursuing the “Japan ODA option” under government-to-government Official Development Assistance from Japan, through the Japan International Cooperation Agency with the help of railway experts from the Asian Development Bank and Australia Aid.

The DoTr apparently banks on the track record of Japan in railways construction and management, as well as its favorable government-backed financial package.

The MRT-3 was built by MRTC at a total project cost of P35.6 billion. MRTC used P10 billion of its own money, and borrowed P25.6 billion from various lenders, payable over 10 years, at interest rates varying from 2.8 to 9 percent.

The DoTr said taxpayers have been paying, and will continue to pay, MRTC a 15-percent return on the P10 billion it has put in. Over 25 years, taxpayers will pay the firm a total of P126.4 billion for its P10 billion equity.

As of early-2018, taxpayers have already paid MRTC close to P73.7 billion, and will continue to pay it more than P52.7 billion until 2025, the DoTr said.

On top of paying MRTC P126.4 billion for its P10 billion equity, taxpayers already fully paid as of 2010 the P25.6 billion that MRTC borrowed, plus interest of P6.9 billion.

The DoTr said that although MRTC borrowed the P25.6 billion, taxpayers were the ones who paid P32.4 billion for its debts. It added that taxpayers will continue to pay P2.2 million per month for MRTC staffing and administration expenses.
For the past several years, the DoTr noted, MRTC’s only business activity has been to collect from taxpayers.

The DoTr said that after MRTC invested P35.6 billion to build MRT-3, it received P73.7 billion as return for its equity, P32.4 billion as payment for its debts, P463.5 million for staffing and administration, and P27.1 billion for tax payment – for a total of P133.7 billion.

By 2025, MRTC stands to receive close to P200 billion in return for its investment, according to the DoTr.

While MRTC has been enjoying a windfall, its affiliate, MRT DevCo, has refused to pay the department almost P2.3 billion as of mid-2015 for leasing out kiosks and advertisement spaces in the MRT-3 line.

There are disagreements between MRTC and DoTr in interpreting the Build-Lease-Transfer Agreement for MRT-3, as well as MRTC’s performance of its contractual obligations. More taxpayers’ money is being spent on cases being litigated in Singapore and Philippine courts.

Advantages of Japan ODA cited

Comparing the two rehab plans, the DoTr said that the Japan ODA option is backed by the government of Japan, whereas the Sobrepeña-MRTC option is backed only by Sobrepeña and MRTC.

It pointed out that MRTC has only one railway project (MRT-3) and Sobrepeña’s project references include the failed College Assurance Plan scheme and the controversial Camp John Hay Development Corp. (it appears that CJHDC refuses to pay billions in debt, intended for the armed forces, through the Bases Conversion and Development Authority).

The Japan International Cooperation Agency has been the Philippines’ long-time development partner, having extended more than P1.4 trillion in ODA projects to the country, P250 billion of which have been for railway-related projects.

JICA is extending an additional P500 billion in ODA for the PNR Clark 1 (Tutuban-Malolos), PNR Clark 2 (Malolos-Clark), PNR South Commuter (Manila-Los Banos), the Metro Manila Subway, and the Philippine Railway Institute Projects.

The Japan ODA loan for the project has an interest rate of 0.1 percent per annum, repayment in 40 years, and grace period of 12 years. The MRTC loans, which taxpayers fully paid in 2010, had a repayment period of 10 years and interest rates of 2.8, 7.52, and 9 percent.

The JICA-appraised indicative base cost for rehabilitation is P11.6 billion, and P5.5 billion for maintenance. Rehabilitation includes restoring MRT-3 to its design operating condition within 26 months. This will “fix everything that needs to be fixed.”

Maintenance includes day-to-day maintenance, preventive maintenance, corrective maintenance, and the complete general overhaul of MRT-3’s 72 cars, which were supposed to have been done in 2014-2016.

The DoTr said that it is “borrowing from Japan to fix MRT-3 once and for all with a comprehensive, single point of responsibility solution, delivered by a highly-qualified and experienced provider, backed by the government of one of the leading railway powerhouse countries in the world.”

The Sobrepeña-MRTC proposal consists of five pages and a series of letters that essentially contain the same things. It is largely based on continuing and expanding what MRTC gets under the BLT Agreement.

For example, the option involves MRTC receiving MRT-3’s fare revenues of almost P3 billion per year up to 2040, without benefit of bidding or a Swiss Challenge.

It also involves an unclear schedule of fare increases that will raise fares from the current maximum of P28 to up to almost P40. That would give to MRTC up to more than P10 billion per year in fare revenues until 2040.

Under the Sobrepena-MRTC scheme, taxpayers will be paying the firm the equivalent of almost six MRT-3’s in exchange for building one MRT-3.

Putting a premium on Japan’s railway expertise, the DoTr cited that country’s having more than 27,000 rail kilometers carrying more than seven billion passengers per year, and its ranking among the safest and most reliable railway systems in the world.

It said Tokyo alone, which has almost the same area as Metro Manila, has 700 kilometers of railways with a ridership of 30 million per day.