THE government has dashed all hopes of private-sector participation in the proposed expansion and modernization program of Metro Rail Transit Line 3 (MRT 3).
The decision affects separate proposals of San Miguel Corp. (SMC) and Metro Pacific Investments Corp. (MPIC) that earlier bared plans to upgrade and modernize facilities of the line stretching 16.9 kilometers across Makati City, Mandaluyong City, Pasay City and Quezon City.
According to Transportation Secretary Joseph Emilio Abaya, the SMC and MPIC proposals will no longer be pursued as the government has decided to buy out the interest of the private sector at MRT-3.
“SMC has a proposal and MPIC has its [own] proposal but our direction right now is for the buy-out to happen,” Abaya said of the plan on Friday.
Under the plan, the government will stop paying the Metro Rail Transit Corp. (MRTC) equity rental, maintenance cost and guaranteed debt payments as well as insurance expense and other items in a transaction seen costing the national coffers close to $1 billion.
Malacañang approved the plan last December and told the Department of Transportation and Communications to begin the buy-out transaction.
MPIC gained control over the MRTC when it acquired bond holdings of the Fil-Estate Group and offered to spend $300 million to expand and modernize the line and $350 million more to acquire equity and some debt notes issued by the MRTC.
SMC, on the other hand, offered to purchase new light rail vehicles for MRT-3 in exchange for revenues.
The buy-out plan will be executed under the leadership of Finance Secretary Cesar V. Purisima and will enable President Aquino to issue an executive order formalizing the agreement.
With the buy-out, the government would no longer be burdened by billions of pesos worth of fees paid the MRTC each year.
The buy-out would compel state-owned Land Bank and Development Bank of the Philippines to finally unload their MRT-3 shareholdings and heed a mandate from the Bangko Sentral ng Pilipinas to unburden themselves of their participation in the light-rail. –Jun Vallecera / Reporter, Businessmirror
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos
October –
Monthly Observances:
Industry and Commerce Safety Month
National Statistics Month
Local Government Month
Consumer Welfare Month
Cooperative Month
National Quality and Productivity Improvement Month
National Health and Wellness Tourism Month
National Indigenous Peoples Month
Weekly Observances:
Week 1: Elderly Filipino Week
Week 2: National Health Education Week
Local Government Week
National Mental Health Week
October 17-23:
National Week for Overcoming Extreme Poverty
October 18 – 24:
United Nations Week
Last Week:
Nurses’ Week
Consumers’ Protection Week
Week of the 4th Sunday:
Barrio Farmers’ Week
Daily Observances:
First Monday (Oct 4): Universal Children’s Day i
n the Philippines
Oct 5: National Teachers’ Day
Oct 10: Local Government Day
Third Thursday (Oct 14): Conflict Resolution Day
Oct 21: Tenants’ Emancipation day
Oct 24: United Nations Day
Oct 29: National Indigenous People’s Thanksgiving Day
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