Wednesday, October 31, 2018

After delay, Philippines, Japan to sign MRT3 rehab loan deal on November 7

The P22.06-billion MRT3 rehabilitation project will mostly be funded by an P18-billion loan from the Japanese government

After months of delay, the governments of the Philippines and Japan are set to sign a loan agreement for the rehabilitation of the Metro Rail Transit Line 3 (MRT3) on November 7.

The signing of the P18-billion deal with the Japan International Cooperation Agency (JICA) was confirmed by Railways Undersecretary Timothy John Batan in a press briefing on Wednesday, October 31.

"The signing of the loan agreement was finalized, and the agreed date is November 7, so it's in a few days," Batan said in a mix of English and Filipino.

Back in August, the National Economic and Development Authority (NEDA) Board Investment Coordination Committee-Cabinet Committee (ICC-CabCom) approved the P22.06-billion MRT3 rehabilitation project.

It will mostly be funded by the Japanese loan, while the remaining amount will be shouldered by the Philippine government. The project is expected to be completed by the 1st quarter of 2021.

Entry of maintenance provider: Batan added that Sumitomo-Mitsubishi Heavy Industries (MHI) returned as maintenance provider starting October 15, ahead of the loan deal signing.

Sumitomo-MHI built and designed the MRT3 railway system from 1998 to 2000, and maintained it until 2012.

"The return of our Japanese maintenance provider started October 15. They agreed even in advance of our loan agreement [signing] and Exchange of Notes and contract. This is the commitment of the government of Japan to accelerate the process," Batan said.

More trains, eventually? Asked when more trains would be deployed, Batan did not give a definite timeline.

The MRT3 began deploying the controversial China-made Dalian train on October 27, with an initial 3 train cars introduced to the system.

Batan said all 48 Dalian train coaches will have to undergo a 1,000-kilometer test during off-revenue hours, other functionality tests and examinations by Germany's TUV Rheinland and Japan's Toshiba Infrastructure Systems, and a final validation by the Philippine National Railways.

Of the 48, only 14 have completed the test run. This already includes the 3 train cars introduced to the MRT3.

https://www.rappler.com/business/215650-philippines-japan-sign-mrt3-rehabilitation-loan-deal-november-7-2018

PH to sign P18.5B-loan pact with Japan for MRT-3 rehab on Nov 7

The Philippines and Japan are set to sign a loan agreement for the rehabilitation of the Metro Rail System-3 (MRT-3) on November 7, Transport Undersecretary Timothy John Batan disclosed Wednesday.

“Na-finalize na ‘yung signing date natin for both the exchange of notes and the loan agreement on November 7, which is going to be next week,” Batan said in a press conference.

Last August, the National Economic and Development Authority’s Investment Coordination Committee-Cabinet Committee (Neda ICC-CabCom) approved the P22.1-billion MRT-3 rehabilitation project, which is expected to start in the third quarter of this year and seen to be completed in the first quarter of 2021.

In September, the Japanese government through the Japan International Cooperation Agency (Jica) offered a 38.1-billion yen (about P18.5 billion) loan to rehabilitate MRT-3.

The rehabilitation of MRT-3, which will be implemented by the DOTr, will increase the number of train sets in operation per hour from 15 to 18, while also increasing the maximum speed to 60 kilometers per hour and decreasing the headway to 200 seconds.

READ: Aging MRT 3 set for rehab as PH, Japan move to sign loan terms

Batan also said that Sumitomo-Mitsubishi Heavy Industries (MHI) returned as the maintenance provider of MRT-3 starting October 15, even if it was ahead of the loan agreement signing, just to speed up the process.

“The return of our Japanese rehabilitation maintenance provider has started last October 15. They agreed na kahit na in advance of our loan agreement, our exchange of notes and contract. Ito ang commitment ng government of Japan to accelerate the process,” Batan said.  /kga

https://business.inquirer.net/259827/ph-to-sign-p18-5b-loan-pact-with-japan-for-mrt-3-rehab-on-nov-7

Monday, October 29, 2018

After 2 years, Chinese trains used for MRT 3

AFTER two years of gathering dust at the Metro Rail Transit (MRT) Line 3’s depot, the controversial trains manufactured by CRRC Dalian Co. of China have finally been put to good use.

Transportation Undersecretary for Rail Timothy John R. Batan said his agency started on Sunday the gradual deployment of the 48 train coaches in the train line, after “an extensive, rigorous, and multilevel audit, assessment, adjustment and validation” of the light-rail vehicles (LRVs).

The Chinese manufacturer agreed to shoulder all costs to solve the issues raised in the independent safety audit and assessment conducted by German company TUV Rheinland.

Dalian started working on modifying the weight, signaling and maintenance equipment compatibility of the trains in July, with Japanese company Toshiba Infrastructure Systems supervising and evaluating the process to ensure that the Chinese company addressed issues raised.

Specialists from the Asian Development Bank (ADB), Australia Aid, and local experts from the Philippine National Railways (PNR) also participated in the evaluation and validation.

“We have done a lot of assessments to ensure that these trains are safe. We have addressed all of the issues at no cost to the government,” Batan said.

So far, one train set—consisting of three coaches—has been deployed for commercial service.  The 45 other cars are still undergoing assessment and validation procedures but will be “gradually deployed once cleared.”

To recall, the Aquino administration jump-started the acquisition of 48 new train cars for the Edsa line. It faced several years of delay due to a legal tussle with the owner of the train facility, MRT Corp.’s parent company, MRT Holdings Inc.

Despite having received the first set of trains in early-2016, the government deferred deployment of the new coaches because all 48 light-rail vehicles had to be “optimized and tested.”

Onboard signaling was amiss from the train, and was only procured midway through the construction of the 48 train units.

The onboard signaling system was only installed in the trains in November 2016. The initial batch of trains should have been deployed in March of the same year, based on original targets.

After these problems were settled, the transportation department wanted to deploy the 48 trains in March 2017; however, it failed to do so after groups raised issues on the train’s weight.

The whole expansion project, amounting to P3.8 billion, will increase the capacity of the line to 880,000 daily passengers from a rate capacity of 350,000 commuters per day.

Help from Japan
BATAN noted that solving this issue also paved the way for the tapping of Sumitomo and Mitsubishi Heavy Industries for the rehabilitation and maintenance of the 18-year-old line.

Since October 15, a Japanese contingency team from the two companies had been deployed to the train line for advance transition works.

“The problem with the MRT 3 is not just the lack of trains, but we also have problems on the old trains, the trails, old signaling systems and many others. We have a lot of issues to address, that is why we adopted a single point of responsibility policy, wherein one service provider will oversee everything,” Batan said.

Sumitomo and Mitsubishi designed and built the MRT 3 in 2000.

The new contract for the Japanese entities’ roles is included in the loan agreement between Tokyo and Manila that will be signed in “early-November,” ahead of the Philippines-Japan High Level Joint Committee on Infrastructure and Economic Development in Manila next month.

Japan is extending a hand to help fix the train system through a P16.98-billion loan facility, which will be used to cover the railway line’s trains, power-supply system, overhead catenary system, radio system, CCTV system, public address system, signaling system, rail tracks,
road-rail vehicles, depot equipment, elevators and escalators, and other station building equipment. Tentatively, the whole deal will take about three-and-a- half years—31 months for the simultaneous rehabilitation and maintenance works to restore train system to its original design condition and capacity, and a year for the defect liability period.

For his part, Transportation Secretary Arthur P. Tugade said his people are “working double time to fast-track improvements” to be done for the train line.

“We have no right to be exhausted,” he said.

Currently, the MRT 3 operates with 16 working trains daily, serving roughly 350,000 passengers per day. The government wants to increase this to 600,000 passengers daily.

https://businessmirror.com.ph/after-2-years-chinese-trains-used-for-mrt-3/

PHL, Japan to sign ODA deal for MRT rehabilitation in Nov.

THE Department of Transportation (DoTr) on Sunday said it is ready to sign an agreement with the Japanese government for the use of official development assistance (ODA) to fund the rehabilitation of the Metro Rail Transit Line 3 (MRT-3) following the initial roll out of new trains.

In a statement, the DoTr said it deployed on Saturday the first of 48 light rail vehicles (LRVs) procured from Chinese company CRRC Dalian Co. in 2014. It noted the other LRVs are still undergoing assessment and validation before being deployed.

After adding the new trains, next for the MRT-3 is the entry of a new maintenance provider and the P22.061-billion loan from Japan for its rehabilitation.

“Ang problema natin sa MRT-3 ay hindi lang ang kakulangan ng tren, na takdang tugunan ng dagdag na Dalian Trains. May problema rin sa lumang mga tren, sa riles, sa lumang signaling, at sa kung ano ano pa [The problem with the MRT-3 isn’t only about the lack of trains, which will be resolved by the Dalian trains. There is also a problem on old trains, rails, old signaling system, among others],” DoTr Undersecretary for Railways Timothy John R. Batan said in the statement.

The DoTr said the Exchange of Notes and Loan Agreement between the Philippines and Japan is scheduled for signing in early November, before the meeting of the Philippines-Japan High Level Joint Committee on Infrastructure and Economic Development in Manila.

The deal between the Philippines and new MRT-3 maintenance provider Sumitomo Corp. and Mitsubishi Heavy Industries, Ltd. (Sumitomo-MHI) is also targeted to be signed after the exchange of notes and loan agreement.

The DoTr said engineers from Sumitomo-MHI have started advance transition works on the MRT last Oct. 15.

Earlier this month, Transportation Secretary Arthur P. Tugade told reporters issues on the Dalian trains were causing delay in the entry of Sumitomo-MHI as maintenance provider for the MRT-3.

Third party auditor TÜV Rheinland said it found issues on weight, signaling, and compatibility of maintenance equipment with the Dalian trains, hence the delay in its deployment. Manufacturer CRRC Dalian then agreed to make the necessary adjustments free of charge. — Denise A. Valdez