DOTC wants ex-MRT operator to pay P1 billion

Manila, Philippines-The Department of Transportation and Communications (DOTC) is reportedly seeking the settlement of P1 billion in outstanding payments from Sobrepena-led MRT Development Corp. (MRT Devco), the firm that had previously operated the EDSA-bound Metro Rail Transit.

The MRT Devco reportedly failed to make any monthly amortization for the development rights payments to the DOTC since 2005, resulting in an outstanding obligation as of last June 22 of P1,009,727,506.94, representing the principal amount due plus interest.

The outstanding amount covers the monthly amortization for the development rights payments on the MRT-3, which was extended to MRT Devco in August 1997.

The development rights, which include the rights to develop and lease out commercial spaces on the depot and stations of the MRT-3, as well as the rights to derive revenue from advertising, were supposed to be a source of income for the DOTC to help offset the cost of operating the transit system.

MRT Devco, led by College Assurance Plan (CAP) owner Robert John Sobrepena, has not paid the DOTC since 2005.

MRT Devco supposedly received the DOTC’s final demand letter on June 29 and was given five days to pay the amount in full.