PROFIT OVER PEOPLE Transit privatization, additional woe amidst inflation

IN AN ATTEMPT to satisfy international standards, the administration of President Ferdinand “Bongbong” Marcos is intent on pursuing public-private partnerships (PPPs) as means to modernize the outdated transportation system in the country. Two initial targets of this eyed privatization are the Ninoy Aquino International Airport (NAIA), following its fiasco, and the EDSA Carousel, which is also known for the Libreng Sakay program. Likewise, progressive organizations stand against these privatization plans, saying that it will only be an additional burden for people who already suffer from the current economic crisis.

no back-up plan nor solution was in line.

The said power outage has made the local aviation authority admit that the country’s CNS system is ‘outdated’, which has then re-opened the talks of privatization. Bautista further disclosed that the plans of privatizing NAIA are underway and will be fasttracked under the administration of Marcos Jr.

Looking back, the Philippine government also procured Manila Area Control Center, a PHP 511-million air traffic control system, which still hasn’t been used by airport authorities.

Former CAAP director general William Hotchkiss II said on Jan. 12 during a joint Senate committee hearing that it was a waste of money because the system had flaws, which rendered it unsafe to use.

“Management has not submitted any update on the potential utilization of the substantially completed Manila Area Control Center Phase I and II so as to deter further loss to the government due to technological obsolescence,” said in a report of the Commission on Audit (COA) flagging the MACC system in July 2022.

Aside from the country’s international airport, EDSA Carousel has been included in the said privatization talks. Proposals will be entertained by the first quarter of 2023, according to the Department of Transportation (DOTr).

The EDSA Busway Libreng Sakay program saw its end on the last day of 2022. Last Jan.

transportation organizations issued warnings that it might be “against the public interest” since higher fares do not always equate to better services.

Thousands of daily commuters coming from different sectors depended on the Libreng Sakay Program of DOTr.

Per this year’s fare matrix released by the Land Transportation Franchising and Regulatory Board (LTRB), the southbound route—rides from Monumento to PITX—costs P75.50. Whereas, the northbound or the reverse route costs slightly less, amounting to P73.

This will be an added burden to the plate of commuters who are also facing hardships in budgeting at times of an 8.1 percent inflation.

Not The Answer

Meanwhile, the Nagkaisa Labor Coalition expressed firm opposition to the plans of privatizing NAIA and EDSA Busway, emphasizing that privatization is not a panacea or an all-out solution to the country’s public transportation woes nor is it a cure to the government’s mismanagement and corruption.

“We want the government to avoid fixation with privatization, as there are other alternatives to it, especially when mechanisms for genuine people’s participation in policy decisions are activated. We believe that by working together, we can find a solution that benefits everyone, rather than just select tycoons,” said Nagkaisa Chair Atty. Sonny Matula.

PRIVATE GAIN, PUBLIC WOES

The Philippine Development Plan (PDP) 2023–2028 was approved by the National Economic Development Authority (NEDA), chaired by President Marcos Jr., last December 2022. The Office of the Press Secretary reports that PPPs will be the centerpiece of Marcos Jr.’s economic blueprint with the aim of propping up the economy and steering it back to its high-growth path.

In a meeting with the League of Cities of the Philippines in Malacañang, the president also urged the country’s Local Government Units (LGU) to consider PPPs as a means for providing projects to their constituents.

“I think this is the way forward, and I encourage all our local government units to be open to the possibilities of PPPs and to have private-public partnerships, especially in your areas,” he said.

The PDP aims to facilitate the entry of foreign investments in the Philippines, which will primarily impact fisheries, forestry, transportation, and telecommunications. Under the guise of generating employment, the administration will practically concentrate the country’s human and natural resources in the hands of local conglomerates as well as multinational corporations.

Furthermore, one of the priority legislations of Marcos Jr. is an omnibus PPP law that espouses the consolidation of all infrastructure projects between the private sector and the government.

The said law seeks to accelerate the enforcement of privatized infrastructure development through PPP, which will also be complemented by NEDA’s plan to raise the minimum threshold for projects that will be requiring the approval of the NEDA Board. While the exact threshold amount is yet to be determined, this lamentably translates into a further decrease in public evaluation and oversight of PPP projects.

MEETING ‘GLOBAL STANDARDS’

NAIA greeted its passengers with a bang to welcome 2023 as it underwent a severe power outage, thereby affecting the air traffic control and resulting in 282 flights being delayed, canceled, or diverted to other regional airports. Meanwhile, a total of 56,000 passengers were also affected on New Years’ Day.

The Civil Aviation Authority of the Philippines (CAAP), which operates the airport, said in a statement that technical problems were discovered for the first time on Sunday morning. Meanwhile, former airline Executive turned Transportation Secretary Jaime Bautista said that he was aware of the issues with the Communications, Navigation and Surveillance Systems for Air Traffic Management (CNS/ATM) that malfunctioned on New Year’s Day and delayed flights across the country, yet

1, passengers from Parañaque Integrated Terminal Exchange (PITX) to Monumento and vice versa started to pay for bus fares once again.

Bautista emphasized that the increase in the volume of passengers is one of the factors in the department’s plan to privatize the said busway.

Moreover, MAP Infrastructure Committee Chair Eduardo Yap said that EDSA Carousel is not up to par with the international standards based on the Bus Rapid Transit (BRT) Standard, hence the plans for privatization.

“Knowing the situation of government, the fiscal constraint, and other constraints as well — you know, the procurement in government is so tedious — we felt that the best solution, time being of the essence, is to privatize the busway,” he said.

COMMUTERS’ EXCESS BAGGAGE

Private companies have to make up for the expenditures incurred when investing their assets. Higher airline costs and commuter bus fares are likely to result from this.

Prior to privatization,

The Coalition also stated its rejection of the idea that privatized transport system is a global standard. As argued by Matula, even advanced economies such as the USA, Japan, Switzerland, Germany, Singapore, and Canada publicly run their mass transportation systems, which continue to provide the public with efficient modes of transport as well as a source of employment.

The Philippine government, he further stressed, must then retain control over the country’s international airports and explore alternative models for the EDSA Busway, such as making it cooperative-run. Rather than the typical seller-buyer relationship that Filipinos experience with privatelyowned utilities, this could provide synergy instead to both the coop workers and the commuting public.

“We stand with the working class and the people in calling for an efficient and equitable transportation system that serves the needs of all Filipinos. What the country needs is a strong, accountable, comprehensive, responsive, effective, and democratic public service,” Matula asserted. ▼