THE local partner of the two European firms that submitted a P4.64-billion unsolicited proposal to upgrade the Metro Rail Transit (MRT) Line 3 claims that its offer is superior than the other rehabilitation offers that the government has received so far.
It is even better, Comm Builders and Technology Phils. Corp. (CB&T) President Roehl B. Bacar said, than the one the government is currently implementing.
“We are the only company to present the most comprehensive proposal to upgrade the MRT,” he said in an interview. “Our proposal is also P100-million cheaper than the approved budget for contract of the government.”
The proposal, which was submitted by Schunk Bahn- und Industrietechnik GmbH and HEAG Mobilo GmbH to the transportation department on February 25, seeks to place the whole train system under a massive transformation program to augment its capacity and to provide a safe and comfortable travel to commuters from the northern and southern corridors of Metro Manila.
The proposal calls for the complete overhaul of the 73 light-rail vehicles of the MRT; the replacement of the rails; the upgrading of the line’s ancillary system; the upgrade of the track circuit and signaling systems; the modernization of the conveyance system; and a three-year maintenance contract.
All these amount to P4.67 billion, a little less than the P4.76-billion MRT modernization program that included the aforesaid components.
“The problems and the solutions are outlined here in our proposal,” Bacar said, noting that one of the main issues that the train line is currently facing is the physical state of the rails.
Transportation Secretary Joseph Emilio A. Abaya, Bacar added, is not too lukewarm to the proposal, quoting the Cabinet official as saying that his office will continue to welcome unsolicited proposal with caution.
“He said during the congressional hearing that the department will study it,” Bacar said.
His group, the company official said, is planning to remake the MRT Line 3, instead of simply improving the state of the line. Several components will be replaced with high-technology devices and equipment, especially the power supply and the rails.
“Systematically, we can do everything in the given period of three years,” he said. “Once the parts come in, we can start upgrading the train system.”
Currently, the government is in the process of rolling out a P9.7-billion multiyear venture to overhaul the line. The complete makeover is expected to be done within the term of President Aquino.
The State, through the Department of Transportation and Communications, is bidding out separate contracts for each component of the MRT 3.
“The scheme is chaotic in terms of project management,” Bacar said, referring to the government’s decision to implement the multiyear program in separate contracts. “When it is integrated by one entity, there is project planning.”
Hence, he said, the government should consider the group’s unsolicited proposal and subject it to a competitive challenge.
“It’s only fair to place this in a Swiss challenge, anybody can do this,” he said.
Other companies have also submitted their own versions of the MRT modernization program.
The group of businessman Robert John L. Sobrepeña is proposing to do a “quick fix” solution to make the train system safe for public transport.
Together with foreign firms Sumitomo Corp. of Japan and Globalvia Infrastructuras of Spain, Metro Global Holdings Inc. is proposing to “fix” the ailing system through a $150-million investment that involves the procurement of a total of 96 new train cars, and the rehabilitation of the existing 73 coaches, increasing its capacity by fourfold to 1.2 million daily passengers.
Under the proposal, a single point of responsibility will be implemented, meaning the rehabilitation and the maintenance of the line will be handled by a single company.
Separately, Metro Pacific Investments Corp. is proposing to shoulder the upgrade costs of the train system and release the government from the bondage of paying billions of pesos in equity rental payments.
The group of businessman Manuel V. Pangilinan, which earlier entered into a partnership agreement with the corporate owner of the MRT 3, intends to spend $524 million to overhaul the line.
The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals.
The multimillion-dollar expansion plan would double the capacity of the line to 700,000 passengers a day, from the current 350,000 passengers daily.
It was submitted in 2011, but the transportation agency’s chief back then rejected the proposal.
The proposals are still at the mercy of the transportation department, but the government seems to be lukewarm to these so-called unsolicited proposals.
“They are all working on the budget, as we are working on the technical aspects,” Bacar noted.
Ultimately, the government is keen on buying out the private-sector partner in the MRT contract, pursuing a P54-billion takeover of the train system.
Should the buyout be completed in 2016, the transportation agency may then bid out the operations and maintenance contract of the line, thereby tapping private-sector efficiency and customer-service orientation for operational needs, while retaining regulatory functions for passenger protection with the government.
The train system has been operating at overcapacity since 2004. Currently, the line serves nearly 550,000 passengers per day. It even reached, at one point last year, the 650,000-daily-passenger mark. It has a rated capacity of 350,000 daily passengers.
32 comments
It’s a better deal for unsolicited proposal to have this subject matter to be carried-out immediately. And, the consultant would also extend assistance in the conceptualization, implementation, and procurement of any and all programs and projects for MRT3 in an effort to
provide a safe, reliable, efficient, convenient, affordable, and efficient mass rail transit system.
With this bidding development DOTC Secretary Jun Abaya’s Department Order made a gigantic response from every sector of the Philippine society. It created much disappointment to some
opposition leaders, train commuters, some Senators and even ordinary Filipino citizens. It has its own way of surprising concerned people while maintaining his stand about the issue.
Of all the immediate concern for MRT3 commuters is safe travel on the trains from point and point B and over the past few months, the system has drawn criticism for recurrent breakdowns due to mechanical glitches. And, this proposal is good in terms of its nature and scope.
Yes, safe travel for train commuters is the primary concern Abaya must look into. yun po ang kailangantugunin sa ngayon. Kung ako kay Aaya idi-dare ko ang dinoman na whoever can fix the MRT 3 in a shorter time wins the award. Ayun, mas madaling matatapos ang kalbaryo ng mga pasahero.
Passenger safety has come off as the more critical issue plaguing the elevated railways system than the source of subsidies for the entire system. It involves life and death while continuing its operation. While the government unilaterally raised metro train fares by 50-80 percent, with proposal to upgrade in service or facilities.
The DOTC’s also open for the consultancy services for MRT3 under its rehabilitation and capacity expansion projects. And this is it. The consulting firm would provide assistance and guidance in all matters pertaining to operations and maintenance of the MRT3 and Light Rail Transit Authority (LRTA). The consultant would also extend assistance in the conceptualization, implementation, and procurement of any and all programs and projects for MRT3 in an effort to
provide a safe, reliable, efficient, convenient, affordable, and efficient mass rail transit system.
Commuters need the rail systems to be in good condition, pleasure to ride, and other developments wherein they can move forward with their daily lives. It’s a must for our leaders to serve our countrymen with dignity, honesty, discipline and determination to succeed.
Easier said than done, much can be accomplish when it comes to our railway system but for leaders who are honest, dignified and disciplined enough to do the best on the job at end. That or those individuals are yet to be born. The political will to get rid of corruption must be the focal point of a good servant.
For MRT3 first and second bidding for getting maintenance provider failed, there’s a possibility to fail because the DOTC Secretary’s strategy in sustaining APT-Global, until such time that they are getting-used of its workmanship. Besides, the APT-Global maintenance provider people are members of Liberal Party. More failed bidding in the making.
Yes, the government has faced the dilemma of 2 failed bidding. Will another bidding procedure brings out a positive result? your guess is as good as mine. But
if one look at CB&T proposal, mukhang okay naman. At least ito coming from a neutral company, hindi katulad ng present service maintenance provider na APT-Global.
Some doubted Jun Abaya’s planned moves as the way to expedite an amount to be used this coming 2016 election? Majority of Filipinos are hoping for them to show that the government decisions now still can give the positive results for their lives.
I am one of those doubters! election is fast approaching and you can’t blame some quarters that money from contracts be deviated to elections funds. If only, there is sincerity on Abaya’s part to put general interest as top priority in upgrading our MRT,then that’s fine with me.
Regarding, unsolicited proposal , I can sense that CB&T proposal is a good catch for us.
The government must welcome the unsolicited proposals on how to overhaul MRT3, rather than set bidding terms that supposedly hinder much-needed improvements in the system. This CB&T comply for the best so far.
We have enough of this bidding stuff and it bears sour fruits. now it is high time to welcome unsolicited proposal. Who knows, one of this proposal suits the need of upgrading MRT. I agree, CB&T proposal seems a good one.
The rumor is that the government welcomes unsolicited proposals on how to overhaul MRT3, and this is happening – rather than set bidding terms that supposedly hinder much-needed improvements in the system. The MRT3 is the least maintained than LRT1 and LRT2 metro rail
system which has undergone much criticism from commuters. Bidding failure means that APT-Global still extended as maintenance provider.
hinay-hinay lang Sec Abaya, it is for the best interest of all kung you will have an in-depth study of each and every proposal. dapat na bigyan diin ng MRT management ang 2 sensitive issues involved mainly:
There should be no significant diversion from the original Build-Lease-Transfer Agreement
and that the change should be advantageous to the government. Those are the two issues that the should be addressed by the new proposals, Ang piliin nyo sana ay mas murang budget pero okay naman ang quality.
To me, Comm Builders and Technology Phils. Corp. (CB&T) proposal seems to meet all the requirement :
complete overhaul of the 73 light-rail vehicles of the MRT; the replacement of the rails; the upgrading of the line’s ancillary system; the upgrade of the track circuit and signaling systems; the modernization of the conveyance system; and a three-year maintenance contract.
Mas mura pa ng 100 Million. Saan ka pa.
Pero a more careful study about the proposal should be done. The pros should outweigh the cons when choosing the right proposal.
Baka kasi sa kamamadali natin na maayos ang MRT eh, mas lalo pa tayong magdusa.
Every proposal has its pro’s and con’s. It is good for MRT to pick the best. What to I mean when I said BEST, the one who will really upgrade the present railway system we have at a much lower budget.
sooner or later, that bidder will come our way. Remember Haste makes waste.
But a bit of caution: Each bidder will always throws away grease money. hope not we are not again enticed by its charisma. And as always corruption should be totally eradicated to ensure that the budget allocated for the upgrading to where it must go.
The reason why it was ignored because unsol proposals are actual costs
Dapat talaga ma-upgrade na ang MRT services. sa palagian nitong pag-down Baka ang maging resulta mas marami pang mamatay sa MRT 3 kaysa sa laban sa Mindanao.
Pro naroon pa rin ang caution o pag-iingat. sana hindi magpadala si Abaya sa sweet talks ng cliente at huwag masilaw sa grease money. Laging meron yan. sa Baranggay nga lang talamak yan. Dyan pa sa malaing contract.
The government should not be dallying in its position. Abaya must be firm on what to pick: unsolicited proposals or open and transparent public bidding.
I have read a post saying that government’s is keen on pushing towards open, transparent and competitive bidding. They have their reasons that we should respect.
But didn’t we have our bad shares when it comes to public bidding. Hope this time, a succesful bidding happens with ‘real’and qualified bidders. Baka kasi magkaroon uli ng ‘ghost’ bidder.
Bidding abc’s now are x 10 of the undol prices
I go for unsolicited proposal for what we need right now is immediately solutions to the problems bogging MRT. These proposals caters to our needs while public bidding id a time consuming process and is prone to anomalies.
both unsolicited proposals and public bidding are 2 good options to choose from. It is now up to the government which one is less prone to corruption and second, what suits best the needs of our ailing public rail system. This time every second counts. The more the rehabilitation of MRT took effect then commuters are daily on risks. Can the government afford that death comes its way before they act?
Hmmn, mukha nga ngang magandang ang offer ng CB&T, sagot na nila lahat ang pag-upgrade ng MRT sa mas mura pang halaga. Pero atubili rito ang gobyerno. mas gusto ata nila ang public bidding ayon kay Abaya.
Ako, kahit ano piliin nila basta, maayos lang ang MRT, ang hirap atang sumakay dyan. Peligro ang pagdadaanan mo.
A far more better MRT operation than the present one is all what commuters are asking the government to give them. Bidding or unsolicited proposal, I don’t care as long as the it will give the bestperformance. Less budget is a thing that Abaya must look into.
As long as corruption is not part of the deal the government is aiming for. Go ako roon.
doon lang naman nagkakaroon ng kapalpakan kapag personal interest na ng tao ang nangibabaw instead of the general welfare of the riding public.
I have doubt that there would be possible bidders knowing na nilangawnga ang previous one. I think unsolicite proposals is a good option to look at.
Too bad unsol proposals are actual prices. No other considerations. No wonder nobody pays attention
wow! at last magkakaroon na ng bagong facelift ang MRT 3 , ang tanong nga lang KAILAN? Eh baka abutin na naman ng pagpapalit ng administrasyon then masasayang lang ang pagpupursugi nitong si Abaya na ma-upgrade na ang MRT at matapos na rin ang problema ng mga pasahero.
Kung ako sa kanya, huwag ng public bidding, matagal yun. Pag-aralan na lang maigi ang 2 proposals na nasa kamay na niya ngayon. Tapos pumili ng best, eh yun, pagawa na ang MRT.
Very good! I will now study the formation of a committee to plan how to create a committee that will conduct the feasibility of forming a govt. body that will oversee an initial trial of a pre-implementation plan for this proposal. – Sec.pAbaya
And then what??? It’s been since feb. Merry christmas!
don’t worry….the initial recommendation for the exploratory study will be finished by July 2016, just in time for its cancellation by the next administration so they can do their own studies… – Emilio pAbaya (proud descendant of the bonifacio and luna murderer —emilio aguinaldo)