Many have been wondering at how the Metro Rail Transit Line 3, or the MRT-3, is able to provide free rides to commuters for weeks now since March 28.
It turns out taxpayers are paying for the free rides.
The MRT-3 free ride program was began ostensibly to celebrate the completion of the rehabilitation of the metro rail line by its management and maintenance provider Sumitomo-MHI-TESP.
The free ride program was announced by the Department of Transportation (DOTr) and the MRT-3 management following a ceremonial inauguration led by President Duterte of the completion of the massive rehab project for the light rail transit line.
The free ride supposed to last a couple of weeks but has since been extended and re-extended until the end of the Duterte administration on June 30.
The reason given for each extension was that government wanted to continue to help commuters cope with the rise in fuel prices and inflation while at the same time to allow the newly rehabbed MRT-3 to test its capacity and performance with the increase in ridership.
According to MRT-3 OIC general manager Michael Capati, 15,730,000 passengers have benefitted from the free ride program from March 28 to May 24, 2020 to the tune of P286 million in foregone revenues from uncollected fare.
In news reports, Capati also said the MRT-3 estimates additional foregone revenues to amount to from P150 to P180 million by the end of the free ride program for a total of nearly half a billion pesos.
From the outset of the program, Capati said that the foregone revenues from uncollected fare would be taken from the “subsidy for mass transport” allocated to the MRT-3 in the 2022 General Appropriations Act.
It is specified in the 2022 GAA that the “amount needed for the payment of prior and current years’ obligations for equity rental, maintenance fees and other obligations due to the Metro Rail Transit Corporation (MRTC), as specified in the build-lease-and-transfer agreement between the DOTr and MRTC, shall be charged against the fare box revenue and all non-rail collections or income of the MRT 3.”
It also specified that “any deficiency in collections or income may be augmented by the amounts appropriated herein for mass transport subsidy” for the MRT-3 which totals to P7,111,507,000.
One can then say that all taxpayers from Luzon, the Visayas, and Mindanao are paying for the free rides of MRT-3 passengers in Metro Manila.
Aside from asking if it is fair to taxpayers from other regions to subsidize commuters in Metro Manila, another question begging to be asked is: Why doesn’t government implement a similar program in other rail systems?
Well, news reports quoted DOTr officials as saying other light rail systems like the LRT-1 and LRT-2 were “not in a position to give free rides like the MRT-3.”
Unlike the build-lease-and-transfer agreement between the DOTr and MRTC, LRT-1 has a concession agreement with private operator Light Rail Manila Corporation.
According to news reports, the LRT-2 has a different financial and subsidy program under the GAA.
What about the Philippine National Railways which runs trains powered by engines using now very expensive diesel fuel?
Well, news reports quoted PNR General Manager Jun Magno as saying: “We can’t give rides for free because we can’t ask for additional subsidies.”
Suzuki expansion
Our friends at Suzuki Philippines has just made it more convenient to own any of the excellent models its lineup with the opening of two refurbished dealerships in Metro Manila.
There is Suzuki Auto Araneta Center at the in LGF Ali Mall, Time Square Ave. cor. P. Tuazon Blvd., Cubao, Quezon City which resumed operations under the under the new management team of ETNA Motors, Inc.
Then there is Suzuki Auto Pasig which relocated to a bigger 930-sqm facility along E. Rodriguez Jr. Avenue (C5), Bagong Ilog, Pasig, with seven service bays and a two-car showroom.
Says Norihide Takei, recently appointed general manager for Suzuki Automobile: “It is with great joy that we announce the resumption of operations in Araneta Center, as well as the relocation of Suzuki Auto Pasig to a new and better dealership with bigger and improved facilities.”
Two icons meet
There’s a new iconic bridge in the Visayas, the Cebu-Cordova Link Expressway (CCLEX), and right now it’s an irresistible drive-through attraction for visitors and those living in Cebu and Mactan.
MINI Philippines couldn’t resist joining in the bandwagon holding what it called the MINI Cebu Breakfast Drive, participated in by 29 MINI owners in the area.
It was a great Instagram moment to record a convoy of iconic MINIs speeding along the 8.5-km CCLEX spanning the channel between the islands of Cebu and Mactan.
MINI Philippines said the drive meant to build camaraderie among MINI owners in the region while experiencing the convenience of the newly built CCLEX.
Happy Motoring!!!
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