Injunction vs acquisition of MRT 3 trains questioned

MANILA, Philippines - The Metro Rail Transit Corp. (MRTC), owner of the Metro Rail Transit line 3, yesterday assured the people that the firm could supply the additional light rail vehicles needed for the expansion of the mass rail system.

MRTC made the assurance as lawyers for the Department of Transportation and Communications (DOTC) and the Office of the Solicitor General (OSG) questioned the holding of yesterday’s hearing for the petition for preliminary injunction that the MRTC had filed against the DOTC before the Makati Regional Trial Court Branch 66.

“MRTC, through its shareholder MRT Holdings, has the contract to build the MRT 3 system as well as to add trains or additional spur lines connected to the MRT3. How can DOTC unilaterally usurp the rights of MRTC?” said David Barbara, spokesman of the MRT Holdings in a statement.

“The MRTC owners could exercise its rights and supply trains to the MRT system within a timely manner. This will assure compatibility with the existing system, and insure safety and efficiency to the commuting public. This proposal will be made in accordance with terms and conditions of existing agreements between MRTC and DOTC,” Barbara added.

MRT Holdings said DOTC usurped the rights of MRTC to build the MRT 3 system as well as to add trains or additional spur lines connected to the mass transit system.

The firm said MRTC wanted to provide additional trains for MRT3 at no cost to the government and in the true spirit of public private partnership (PPP).

“Such a proposal was made to DOTC a few years ago. If the DOTC were really in a rush to put trains, why haven’t they acted on the proposal of the private sector to supply trains at private sector’s exclusive cost? This proposal includes running the operations of the MRT3 system to replace the inefficient DOTC, which is causing government to subsidize billions every year,” the statement read.

Infrastructure giant Metro Pacific Investments Corp. (MPIC) has a 48 percent interest in MRTC after it entered into a cooperation agreement with the Sobrepeña-owned Fil-Estate Corp. in November 2010 regarding its interests and rights in Metro Rail Holdings Inc., Metro Rail Transit 2 Inc., and Monumento Rail Transit Corp.

It has yet to exercise its option over the shares.

MPIC offered to spend $300 million to expand the capacity of MRT 3 and another $350 million to acquire equity and bonds issued by MRTC.

MRT Holdings pointed out that the government could have saved hundreds of millions of taxpayers’ money had the DOTC approved the proposal of the private sector to supply trains for the MRT3.

MRTC believes the government went overboard when it awarded a P3.8- billion contract to China’s CNR Dalian Locomotive and Rolling Stock Co.

Last Jan. 30, the Makati RTC Branch 66 stopped the DOTC from pushing through with its purchase of 48 light rail vehicles (LRVs) from China’s CNR Dalian as part of the MRT 3 expansion project.

In his two-page order, presiding Judge Joselito Villarosa granted the petition of the MRTC seeking a preliminary injunction “as interim measure of protection” through the immediate issuance of a 20-day temporary order of protection against DOTC. – With Lawrence Agcaoili