MRT3 Ownership Structure


EQUITY AND DEBT • Equity represents the ownership of a company by its shareholders • MRT's shareholders/owners are private companies Astoria Investment of the Ayala Corp., Anglo Philippine Holdings of the National Bookstore Group, Railco Investments of the RAMCAR Group, Metro Global Holdings Corp., Sheridan LRT Holdings of the Unilab Group and others • Any debt to another entity, whether a bank or not, does not equate to ownership of said entity • Land Bank and DBP own 0% of the MRT

LAND BANK & DBP'S STAKE IN THE MRT • In 2008, foreign investors Goldman Sachs Group, Inc. and Elliott Group owned a large percentage of the MRT’s bonds • To resolve the threat of arbitration, state banks Land Bank and DBP bought the bonds from Goldman and Elliot in 2008 and 2009 • Land Bank and DBP hold 78% percent of the MRT Bonds • The nominee directors of Goldman and Elliot filed an arbitration case against and initiated the EVBO notice to the Philippine government in 2008 citing the latter’s delayed rental payments		GOVERNMENT IS PAYING THEMSELVES • DOTC pays MRTC rental fees in accordance to the BLT Agreement • The rental fee MRTC receives is used to pay Land Bank and DBP the bond payments

DOTC'S BUDGET FOR MRT BUYOUT MAY GO TO WASTE • DOTC determined the P53.9 B MRT buyout amount without consulting the owners*** • What the budget can buy are the bonds held by state banks Land Bank and DBP • Senator Francis "Chiz" Escudero is not convinced that the buyout is what the people need right now* • According to the Senator, the large amount of money can be used to improve infrastructure to ease traffic congestion or on disaster preparedness programs instead		MRT BUYOUT AMOUNT GREATER THAN BUDGET FOR HEALTHCARE • DOTC is adamant on buying out the MRT by 2015 but has not corresponded with the owners • The Equity Value Buyout is estimated at P112B, twice the proposed amount by DOTC • The P112 B EVBO is greater than the P102.2B national budget for healthcare

* https://www.senate.gov.ph/press_release/2014/1020_escudero1.asp http://newsinfo.inquirer.net/640920/house-approves-proposed-p2-6t-budget-on-2nd-reading *http://ppp.gov.ph/?p=25211