‘Reenacted budget to affect MRT-3 rehab, subway project’

MANILA, Philippines — The rehabilitation of Metro Rail Transit-3 (MRT-3) and the construction of the Metro Manila Subway are among the projects under the Duterte administration’s Build, Build, Build program that could suffer a setback due to the implementation of a reenacted budget this year, transportation officials said yesterday.

In a press briefing at Malacañang yesterday, Transportation Undersecretary Timothy John Batan and Philippine National Railways general manager Junn Magno said that while the administration remains optimistic that the country’s major road projects would be finished by 2022, there are concerns that delays in the approval of the budget would adversely impact major infrastructure projects.

“We are still on time, but we are trying to find ways to catch up,” Batan said. Aside from the MRT-3 rehab and the Metro Manila subway system, another big-ticket project is the first phase of the Philippine National Railways (PNR) system expansion from Tutuban station in Manila to Malolos City, Bulacan.

“We are doing all possible ways we can to make sure that we can fulfill our commitment (for the projects) to be partially operational by 2022,” Batan added.

The transmittal of the P3.7-trillon 2019 budget to President Duterte hit a snag amid accusations that Speaker Gloria Macapagal-Arroyo made last minute insertions even after the bicameral report had already been ratified last Feb. 8.

Batan said they were awaiting the release of P500 million appropriated under the 2019 budget to fund right-of-way component of the Metro Manila subway. 

For the MRT-3 rehabilitation project, Batan noted that the government has not released the P2.5-billion to P3-billion advance payment to contractors under the P18-billion loan agreement between the Philippines and Japan.

Batan also revealed that the government has not paid its obligation to the MRT-3’s original Japanese maintenance providers, including Mitsubishi Heavy Industries.

Batan also reported that while the rehabilitation of MRT-3 line is in progress, contractors have to shell out amounts for procurement of spare parts and other equipment.

“The rehab works are ongoing, except the procurement of (hardware) needed for the rehabilitation to improve the condition of MRT- 3,” he said in Filipino.

As far as PNR is concerned, Magno said it has to make do with available corporate funds so it could proceed with the 37.6-kilometer elevated mass railway transport system The project costs a total of P149 billion.

The Japan International Cooperation Agency (JICA) is funding P93 billion of the project cost. The project will cover 10 stations – Tutuban, Solis, Caloocan, Valenzuela, Meycauayan, Marilao, Bocaue, Balagtas, Guiguinto and Malolos.

Batan explained that funding for projects cannot be sourced from a reenacted budget.