Tuesday, October 21, 2014

Who Gains From MRT 3 Buyout?

There are yet again several controversies surrounding this plan of a buyout. People have wondered why all of the sudden Aquino wants to push through with this expensive buyout which will cost us P56 Billion pesos to complete. Aquino stated that it was to end the huge rental fees the government pays for private sector who owns the MRT3. It was estimated that this buyout will be finalized on the first quarter of 2015.

This statement threw me off and to be honest it didn’t make sense that they are planning to buy MRTC but they're just buying 27 billion worth of bonds that they already own but paying 54 billion for it.Another fact that was discoverred was that  The APT Global, DOTC Maintenance Provider said, received 1.4 million USD per month supposedly with spare parts. But actually the APT Global  is not providing the spare parts only maintaining it which I think will cost more in the long run.

Jun Abaya said that the buyout will no longer be negotiable, citing the build-lease-transfer agreement between government and MRTC that specifies a formula on how to compute an equity value buyout. Fil-Estate Head Roberto SobrepeƱa can always use other legal remedies to fight this. I believe that they should still talk to Bob Sobrepena this is why The MRT is all messed up because the MRT has long been ignored and neglected by Department of Transportation and Communications.

Nothing has been done to improve the MRT and now with the trains flying off the tracks still he has not done much to fix all these problems. It's not a good idea having the government take over the MRT 3- They should get the DOTC out of the way and allow the private sector to be accountable. If they aren't accountable then the government imposes deadlines for the violations. If deadlines aren't met then fines are imposed. If fines aren't paid the government has the right to put an injunction against the owners and allow bids to take over the lrt/mrt. once it's taken over, the previous owners receive what ever money the new buyer paid less government expenses (within reason). it's the same situation as a foreclosure on real estate. if taxes aren't paid, you lose your property in foreclosure.

Who stands to gain from the MRT3 Buyout? Its certainly not  MRTC or  MRT Holdings. It doesn’t take a genius to understand why they are rushing before 2016 comes.

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