MRT owner urged to drop case vs DOTC

MANILA, Philippines - The Department of Transportation and Communications has called on MRT Holdings Inc. (MRTH) to drop its case against the DOTC to stop the procurement of 48 new trains for the Metro Rail Transit Line 3 (MRT-3) system.

President Aquino, in his State of the Nation Address (SONA) on Monday, took note of MRTH’s failure to add new coaches for the MRT-3 despite its contract with the government.

“The riding public deserves a much better MRT-3 than what the private owner is providing. That is why we exercised political will to add new trains. But the MRTH filed a case against the DOTC,” Transportation Secretary Joseph Abaya said.

MRTH is the owner of MRT Corp., which operates the MRT-3 through a build-lease-transfer scheme with the government.

In February last year, the firm sought a temporary restraining order (TRO) and permanent injunction to stop the DOTC from acquiring new trains.

The Makati City Regional Trial Court initially issued a TRO but later decided in favor of the DOTC.

The MRTH filed a petition with the Court of Appeals (CA), which also ruled in favor of the government, saying public interest must prevail.

The case remains pending with the CA as the MRTH asked the appellate court to reconsider its decision.

Abaya said the DOTC is committed to address woes plaguing the MRT-3 with the acquisition of 48 new trains.

The new coaches are expected to be delivered early next year.

MRTH cries foul

For its part, MRTH cried foul after President Aquino blamed the company for the sorry state of the EDSA railway system.

It said the blame should be pinned on the DOTC.

David Narvasa, MRTH lawyer and spokesman, said the President should not have exonerated the DOTC while blaming “political decisions” made by the previous administration.

In his SONA, Aquino took a swipe at MRT Corp. for allegedly forgetting its obligation to maintain the train system.

Citing a DOTC report, he said “only token cosmetic changes were undertaken, resulting in breakdown of the trains.”

Narvasa, however, denied this, saying the general overhaul of the trains, through maintenance provider Sumitomo Corp., started in 2007 and was completed in 2009.  – Louella Desiderio, Edu Punay