MRT-3 (File photo from Philippine Daily Inquirer)
The Philippines and Japan have reached a deal on the rehabilitation and maintenance of the congested Metro Rail Transit聽(MRT) that has suffered at least 500 disruptions in 2017, according to the Department of Transportation (DOTr).
DOTr OIC Undersecretary for Railways TJ Batan聽on Tuesday聽said that Japan has committed to extend official development聽assistance for the MRT鈥檚 rehabilitation and maintenance efforts through a loan agreement.
鈥淭he arrangement with Japan involves obtaining Official Development Assistance (ODA) financing under Japan聽International Cooperation Agency鈥檚 (JICA) Special Terms for Economic Partnership (STEP),鈥� Batan said in a statement.
Batan said that under ODA projects with the Philippines, terms include 0.1% interest per annum, 40 years payment period,聽and 12 years grace period for the principal.
鈥淛apan is committed to extend official development assistance for the MRT-3 Rehab and Maintenance Project. The loan聽agreement that will be signed is for formalizing the specific terms of Japan鈥檚 assistance for MRT-3,鈥� he said.
Japan has agreed to let JICA conduct a feasibility study in January to February, Batan said.
This would be followed by the signing聽of a loan agreement and procurement of a rehabilitation and maintenance provider around March to April, he said.
The mobilization of a new Japanese provider was expected within the 2nd quarter of 2018, Batan said.
鈥淭he procurement of a Japan-nominated rehabilitation and maintenance provider will be done pursuant to JICA鈥檚聽procurement guidelines. Given the urgent need to restore MRT-3鈥檚 reliability and capacity, Japan has given assurances that聽it will nominate a provider that is highly qualified, and has a robust and reliable track record,鈥� he said.
鈥淭hese developments show that we are wasting no time and effort in rehabilitating and restoring the reliability and capacity聽of MRT-3. This year, we will make significant improvements to MRT-3, and that is our commitment to the Filipino聽commuters,鈥� Batan said.
The Department of Transportation (DOTr) blamed the disruptions of the MRT on the 鈥減oor performance鈥� of Busan Universal聽Rail Inc. (Buri) in maintaining the congested transit line.
Last October, the DOTr issued a notice of termination against Buri for failing to 鈥渆nsure the availability of contractually聽obligated number of trains, and more importantly, to put in operation reliable and efficient trains.鈥�
鈥淭he termination was intended to promote accountability and ensure that taxpayers鈥� money is not being spent on a non-performing service provider,鈥� Batan said. /je