DAVAO CITY – A lawmaker said Metro Rail Transit’s onerous contracts only favors private corporations.
During the House of Representatives Committee on Metro Manila Development discussion on the updates and status of rehabilitation of the MRT on Wednesday, Gabriela Women’s Party (GWP) Representative Luzviminda Ilagan said that the contracts entered into by the government is the one that is “wrong with the MRT”.
“More than the trains, more than the rails or the ticketing system, it is the contracts entered into by the government that is wrong with the MRT. For as long as these onerous contracts are not revoked, commuters’ lives will remain miserable,” she said.
Ilagan pointed that “among the onerous provisions of existing contracts entered into by the government in the maintenance and management of the train systems, provides for the regular fare increases and sovereign guarantees assuring at least 15% annual return on investment in the form of equity rental payments.”
She said “these contracts spawn these fare hikes and consequently place the burden on poor commuters.”
Ilagan said that the rehabilitation and expansion projects will only remain “as a milking cow for profiteering private corporations like MRT Corporation.” (davaotoday.com)
