During the Marcos years, the LRT-1 came about. Then FVR gave the sweetheart deal for MRT-3. LRT-2 followed. But the key mass transport is MRT-3
The private owners led by the Sobrepenas of College Assurance Plans (CAP), Ayala Land, Ramcar, Greenfield Development of Unilab, Anglo Philippines Holdings and a few others had a great deal going for them. They had a guaranteed income from government. It didn’t matter that Erap pegged the fare at a point too low to recover cost of operations.
Government was responsible for operations. The Sobrepena consortium was a rent collecting landlord. The consortium bailed out on their economic interest by issuing bonds backed by the guaranteed government rental. But the consortium retained ownership.
Soon there was trouble because MRT-3 was not being maintained well. That was supposed to be the business of the landlord, but government took it on and messed up.
The PNoy administration made a series of bad decisions we are paying for up to now. They awarded maintenance contracts to political allies who were only interested in the fees, with zero knowledge of what to do.
Then PNoy’s
Jun Abaya awarded the purchase of new rail cars to a Chinese company that didn’t follow the specs required. So, the Dalian railcars are not being used and P3.8 billion of the people’s money wasted. Under the MRT-3 contract, the Sobrepena consortium, like any landlord, was supposed to be responsible for capex like new train cars.
Come the Duterte administration. They dilly dallied on what to do with MRT-3, the Dalian trains and the still legal owners, the Sobrepena consortium.
Finally, they moved and negotiated a deal with JICA to hire back Sumitomo to fix MRT-3. Good move. Mar Roxas erred in firing Sumitomo, in the first place.
MRT-3 facilities need a lot of fixing. The rails are falling apart, which explains why the trains are running at reduced speed. The electrical lines, the communication facilities and other technical stuff need upgrading too.
Sumitomo will take care of all that.
But under the JICA agreement with Sumitomo and DOTr, Sumitomo will only bring back MRT-3 to the point when their contract expired in 2009. No new train cars and they don’t want to have anything to do with the Dalian train cars. I imagine the guarantee will cease if DOTr uses the heavier Dalian cars.
That means running 22 trains per hour by 2021, which was the level in 2009. In short, no capacity increase after 12 years! After all the huffing and puffing and wild anticipation, we are not going to be better off in 2021 than when PNoy took over.