There will be no Roxas-Abaya scandal again, MRT3 rehab not Overpriced

There will be no Roxas-Abaya scandal again, MRT3 rehab not Overpriced

There will be no corruption again in the rehabilitation of the Metro Rail Transit Line-3 (MRT-3) , its rehabilitation is not overpriced.

The total cost of the rehabilitation of the MRT-3 is P18 B  and this was based on the recent audit of the railway system, DOTr Undersecretary for Railways Timothy John Batan said.

Sumitomo returns to fully rehabilitate MRT3 and its maintenance provider (photo credit to owner)

“Sumitomo has not formally or even informally given a price quote to MRTC (MRT Corporation) for the rehabilitation and maintenance of MRT-3 anytime in the last five years and our proposal would be based on recent audit on the current MRT-3 system,”  Batan said.

The Sumitomo-Mitsubishi Heavy Industries comes into the picture after the Philippines represented by the Department of Finance (DOF) and the Japan International Cooperation Agency (JICA) signed the PHP 18B (38-Billion Japanese yen), it will be taking over its rehabilitation and maintenance of the MRT-3.

Sumitomo was part of the consortium that designed and built the railway system from 1998 to 2000 and maintained the system from 2000 to 2012.

DOTr had to addressed the allegation of Philippine Star columnist that the cost of the MRT rehabilitation has more than doubled from PHP7.5 billion to PHP18 billion..

In Bondoc’s column he alleges that said MRT-3 owner Metro Rail Transit Corporation (MRTC) has proposed to conduct the rehab for only PHP7.5 billion in 2016.

Wala naman technical capability ang MRTC nangongolekta lang yan ng renta mula saDOTr at hindi naman siya talagang railway operator at developer (MRTC has no technical capability; they only collect rents coming from the DOTr and they are not really a railway operator and developer),” Batan said.

A team of experts from the JICA conducted a comprehensive system inspection of the current status of the MRT-3 earlier this year all in preparation for the signing of the loan agreement for the rehabilitation project.

“From January to April this year, a JICA study team, composed of 150 Japanese and Filipino engineers, conducted a comprehensive system inspection of the MRT-3. JICA, then held a fact-finding mission in April to verify the results of the study, and subsequently, a loan appraisal mission for the project in May,” Batan explains.

The upgrade of the Metro Rail Transit Line-3 (MRT-3) which is set to start by January of 2019 is projected to last for three and a half years.
The DOTr expects the operations of the MRT-3 to gradually improve starting on the third quarter of next year

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Report from PNA

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