SM vows to fight for LRT 1 Cavite contract Group says no intention to delay project

MANILA, Philippines - The SM Group yesterday clarified that it has no intention of delaying any major infrastructure project of the government particularly the P65 billion Light Rail Transit line 1 (LRT1) Cavite extension project.

Ryan San Juan, legal counsel of SM Prime Holdings Inc., said in a text message that the SM Group is not seeking an injunction on the government’s biggest public private partnership (PPP) project.

“SM is not restraining the LRT1 project. In fact, SM wants it to proceed,” San Juan said.

The SM Group has filed a case before the Pasay City regional trial court against the DOTC and the Light Rail Transit Authority (LRTA) due to alleged breach of contract in the location of the common station.

SM Prime is seeking the issuance of injunction preventing the DOTC and LRTA from transferring the location of the proposed common station to the Trinoma Mall of property giant Ayala Land Inc. instead of the earlier agreed SM North Edsa in violation of the memorandum of agreement signed on Sept. 28, 2009.

In its petition, the SM Group states that the location of the common station is in front of SM North Edsa and should be named SM in exchange for P200 million.

Aside from the so-called naming rights, SM added that Section 3 of the memorandum of agreement specifically provides for the grant of access way or an interconnection of the common station via a bridgeway to the pertinent level of the mall. 

“The prayer for injunction is limited to enjoining the DOTC from acting in any way which is inconsistent with the terms of our MOA. We are just protecting our rights under a valid and subsisting contract,” San Juan added.

Transportation Secretary Joseph Emilio Abaya defended the other day the government’s decision to relocate the proposed P1.4-billion Metro Rail Transit – Light Rail Transit (MRT-LRT) common station to Trinoma mall.

“Again it is a clear policy this is a national infrastructure project in which a TRO by the Supreme Court will be the only way to stop it. I think the government should not be deprived of seeing things in a different light,” Abaya said.

He said the agency conducted a study which showed the government stands to save between P800 million and P1 billion if the proposed common station is constructed near the Trinoma Mall instead of the SM North Edsa mall.