MMDA, DOTC at odds over MRT-3 ad posting

A conflict is brewing between the Metropolitan Manila Development Authority and the Department of Transportation and Communications over the posting of advertisements on the structures of the MRT-3 along the center islands of EDSA.

MMDA Chairman Benjamin Abalos Sr. said that he had to temporarily cease his efforts to remove the advertisements posted on the center islands of EDSA because of legal issues raised by the DOTC.

A couple of months ago, Abalos had ordered the removal of the advertisements because of the potential risks to motorists.

However, as soon as the MMDA started removing the ads, the DOTC immediately stepped in and questioned Abalos’ order.

According to MMDA General Manager Jaime Paz, the authority received a letter from Paul Daza, senior vice president of the Metro Rail Transit Development Corp. who claimed that the removal of the advertisements was unlawful.

Daza explained that the contract of the MRTC specifically gives the firm the authority to look for other ways to gain profit from the project, apart from the revenue generated from the operation of the trains.

He cited three specific provisions of the build-lease-transfer (BLT) contract of the MRT-3 project which addressed the issue of the advertisements.

The contract basically allows the MRTC to post advertisements in depots of the MRT-3, the air space above the stations and the LRTS Phase I.

Paz pointed out that it is the LRTS Phase I provision that is used by the MRTC to justify its posting of ads along the center islands of EDSA.

Based on the definition of the MRTC, the LRTS Phase I refers to the entire structure of the MRT-3.

According to Paz, the MRTC has a legal right to argue its case because of the stipulations on its contract about the ads.

However, he explained that the provisions enumerated by the MRTC should be taken in its entirety as far as the argument on the ads is concerned.

Paz noted that the first two provisions enumerated by the firm ensure that the position of the ads would not provide any distraction to motorists.

On that premise, Paz argued that the judgement on the location of the ads based on the LRTS Phase One provision should take into consideration the first two enumerated.

"The ads should be placed where they can’t cause distraction to motorists," Paz said. The MMDA also responded to the MRTC by citing the violations committed by the firm with the posting of the ads on the center-islands of EDSA.

Presidential Decree No. 1096 or the National Building Code of the Philippines, Metro Manila Council Memorandum Circular No. 88-09 and MMDA Resolution 96-009 all prohibit the posting of signs, billboards and any other form of advertisements along the center islands of EDSA.

All three laws maintain that the posting of the signs should not be in areas which would obstruct the view or distract motorists.

"The BLT (contract) is subject to existing applicable national and local laws, ordinances, rules and regulations. We have to strictly enforce the existing rules and regulations on the posting of billboards, signages and the like," Paz said in his reply to Daza.

For his part, Abalos said that he is set to meet with DOTC Secretary Pantaleon Alvarez to find a solution to the issue.

One of the possible areas being looked into by the MMDA is a legal opinion from the Department of Justice or any other related body.

Although the MRT-3 is owned by the MRTC at present, the DOTC is responsible for the operational aspects of the project as provided for under the 25-year BLT contract.

After 25 years, the MRTC will turn over the entire project to the government.