Supplier assures it can fill train requirement for MRT expansion

MANILA, Philippines - The Metro Rail Transit Corp. (MRTC) on Friday assured that it could supply the additional light rail vehilces (LRVs) needed for the expansion of the Metro Rail Transit (MRT) 3 line.

The MRTC made the assurance as lawyers for the Department of Transportation and Communication (DOTC) from the Office of the Solicitor General (OSG) questioned the holding of the hearing on the petition for the granting of a preliminary injunction it had filed against the DOTC before the Makati Regional Trial Court (RTC) 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 conected to the MRT3. How can DOTC unliaterally usurp the rights of MRTC?" said David Barbara, spokesman of the MRT Holdings in a statement.

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

Last January 30, the Makati RTC Branch 66 stopped the DOTC from pushing with its purchase of 48 light rail vehicles from China's CNR Dalian Locomotive & Rolling Stock Co. as part of the MRT-3 capacity expansion project.

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

"Wherefore, premises considered, the ex-parte application for a 20-day temporary order of protection is hereby granted upon the filing of the bond within five days from issuance of this order, in the amount of Pesos 300 million to answer for all damages which respondent may sustain by reason of the TRO if the Court should finally decide that the petitioner was not entitled thereto,” the court's order said.

"Respondent (DOTC), its officials, employees, agents or any person acting in their behalf are hereby restrained from performing any and all acts related in any manner to its procurement of additional LRVs for the MRT3 and from committing any act tending to usurp and to violate the rights of MRTC under section 5.2 and 14.4 of the BLT agreement,” the order added.

The then Metro Rail Transit Corp. Limited (MRTCL) - predecessor of the MRTC - entered into a build-lease-transfer agreement with the DOTC in 1999 to construct and maintain a light rail transit system for EDSA, eventually known as MRT-3.

The court ruled that among the rights assigned to MRTCL and MRTC under the BLT agreement was a provision in paragraph 5.2 that it would only lose its preferential right to supply light rail vehicles in either one of two instances: a) if the MRTC is in breach of its obligation under the BLT Agreement; or b) if the MRTC consents to DOTC’s use of light rail vehicles which were not provided by MRTC.

However, the DOTC awarded the capacity expansion contract to Dalian last month, despite its prior BLT agreement.

The court gave DOTC 15 days to file a comment to the order and the petition.

But during the hearing, government lawyers said the hearing should not push through as they have yet to file their comment. They added that the 15-day period given to them by the court has not yet lapsed.

Judge Villarosa, meanwhile, reminded the government lawyers that although they were given 15 days to file their comment, they should not exhaust the entire period as they are aware that the hearing was scheduled on Friday.

The court has re-scheduled the hearing to February 13 at 2 p.m. Judge Villarosa ordered both the government's lawyers and the lawyers for the MRTC to present their respective witnesses with their judicial affidavits for cross-examination.

Meanwhile, Nick Villaluz, another lawyer for the MRTC told reporters that they would be presenting four witnesses on February 13 hearing.

Villaluz said their witnesses, including MRTC chairman Robert Sobrepeña, will testify how MRTC will suffer irraparable damages if the injunction against DOTC is not issued.

Villaluz added that there is a possibility that the 20-day temporary order of protection (TOP) earlier granted by the court will be extended if the hearings for the preliminary injunction will drag. The TOP will be effective only until February 24, Villaluz said.