http://www.thesundaily.com/article.cfm?id=40222

Maria J.Dass

PETALING JAYA (Nov 15, 2009) :The Transport Ministry today refuted allegations pertaining to its purchase of new diesel multiple unit trains for the KTM Komuter service.

In a statement to the media today, the ministry said today allegations that the decision had been made without the agreement of KTM Berhad’s board of directors was not true.

“At the last meeting to discuss the purchase of diesel multiple units (DMU), the board had left it to the ministry to make a decision on purchase of the units,” the statement said.

The decision to purchase the DMUs was made in view of the shortage of electric multiple unit (EMU) stock to accommodate the increasing passenger volume of 95,000 daily and to boost usage of public transportation as per the government’s aim, it said.

Among the accusations against the ministry and minister Ong Tee Keat was that the four DMU sets were purchased in March this year for RM30 million – allegedly higher than the actual cost.

Referring to the Railway International Gazette, the allegations by certain quarters said Costa Rica had purchased a set of four DMUs with modifications for a total of two million euros (RM10 million).

The ministry in its statement said this report was inaccurate and released a five-page explanation on its purchase of the DMUs.

“Efforts were made to source for new EMUs but the delivery of these units would take too long – up to two to three years while maintenance works on existing EMUs would take up to a year,” the ministry said, adding that efforts were made to obtain used EMUs but none were available in the market.

Spain then offered to offered to supply used DMUs to KTMB and in view of the desperate need, a detailed technical study was carried out before the decision to purchase the 20-year-old reconditioned DMUs was made.

It was estimated that the DMUs have a remaining lifespan of between 15 and 20 years.

The ministry also denied that the cost of the DMUs at 1.4 million euros (RM7 million) per set was higher that the Euros2 million (RM10 million) paid by Costa Rica, and said the maintenance cost of the DMUs is similar to the cost of maintaining the present diesel engines.

The DMUs were an alternative to the propulsion technology other than the EMUs which was needed for services with frequent stops like the KTM Komuter and ulike the EMUs, can even be used on non-electric lines.

On the safety issue, the ministry said the DMUs were as safe as other trains and diesel trains were still needed to service areas such as the East Coast which has fewer areas with electricity supply.

Cebu City Mayor Tomas Osmeña yesterday threatened to file criminal charges against any government official who would support the Light Railway Transit (LRT) project.

Osmeña said he would file the case after the ongoing study conducted on the feasibility of the Bus Rapid Transit (BRT) System would prove that the BRT is better than the proposed LRT project.

Osmeña said he believed that the LRT project proposed by a private company AMA Group Holdings Inc. had attached graft and corruption motives.

“This case is anomalous and disadvantageous to government and to pave the way that anyone who will endorse it we will file graft charges against them,” Osmeña threatened.

He said under the law the accuser of graft and corruption don’t have to prove that there is money involved and they only have to prove that a project or undertaking is grossly disadvantageous to the government.

“We have enough basis for that right now. Because we are saying we have an ongoing study (on the feasibility of the Bus Rapid Transit) why are you going to stop this ongoing study on the BRT which is being funded at no cost to us by international agencies. Instead they want to make a decision (immediately),” Osmeña said.

Osmeña said he would attend the Regional Development Council (RDC) meeting in December where the proposed LRT project would be pushed.

He said he would be there at the gathering of all local chief executives, non government organizations and academe, to document who among them would support the LRT project.

“Later on when we find out that this LRT is an anomalous situation we will go all the way to those who endorsed it in the RDC. So now we will put a matter of record that those of you who will endorse this – we will file charges. I’m almost sure that it is proven to be anomalous. It is grossly disadvantageous. It’s my job to protect the interest of the city,” Osmeña said.

The mayor said he would also ask the RDC to wait until the BRT feasibility study would be completed before the RDC would make any decision on the LRT proposal.

The mayor likened the LRT proposal to the anomalous lamp post deal as well as of the Metro Rail Transit 3 (MRT-3) where it was grossly disadvantageous to the national government.

“It is very similar to the lamp post deal that it does not cost you (the city) but it costs the national government. I will publish in a full page advertisement on what happened to the MRT 3,” Osmeña said.

The MRT 3 project which was also said to have no cost the the city was not commercially viable, according to the Inter- Agency Committee, which included the Department of Finance and Department of Transportation and Communication, and Department of Budget Management.

According to the IAC, the project was not viable because its annual revenues was only P2.1 billion while its annual expenses would reach P8.9 billion over 20 years.

This means that the government had to subsidize an average of P6.8 billion per year for 20 years.

The IAC investigation said that to eliminate the government subsidies, the MRT had to increase its average fare of P12.50 to P60.53.