Gov’t to contest MRT 3 restraining order | Inquirer Business

Gov’t to contest MRT 3 restraining order

/ 09:44 AM February 06, 2014

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MANILA, Philippines—The Department of Transportation and Communications (DOTC) said it would defend a recent decision to procure more trains for the congested Metro Rail Transit Line 3 (MRT 3) from a Chinese company after a Makati City regional trial court ordered a Temporary Order of Protection, the agency on Wednesday said in a statement.

The contract recently awarded to Dalian Locomotive and Rolling Stock Company, a state-owned Chinese train maker, involves the construction of 48 new train cars and is deemed crucial for MRT 3, which is currently running well beyond capacity.

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“We will fight for the interest of the hundreds of thousands of MRT 3 riders who have been waiting for more LRVs for too long. At the time when government is finally ready to deliver these projects, the public good is now being held hostage by a private company,” said DOTC spokesman Michael Arthur Sagcal.

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The court order names the Metro Rail Transit Corp. (MRTC), which owns the MRT 3 facilities, and Metro Rail Transit Holdings II, Inc. (MRTH-II), an affiliate companies, as petitioners for the Temporary Order of Protection.

But the DOTC claimed in its statement that a member of the MRTC Board of Directors, whom it declined to identify, has confirmed with the DOTC that the MRTC has no part in this issuance.

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Officials of MRTC did not immediately respond for comment. Metro Pacific Investments Corp. led by businessman Manuel V. Pangilinan holds the option to acquire a controlling stake in MRTC, but it has yet to exercise it, an official said yesterday.

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Metro Pacific president Jose Lim last month urged the government to consider its proposal to expand the MRT3.

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While the project has been awarded to Dalian, the DOTC has yet to issue a so-called notice to proceed, Sagcal said yesterday. The trains are expected to be delivered over the next three years and will beef up the MRT’s existing fleet of 73 train cars.

Transportation Secretary Joseph Abaya said in a text message yesterday that DOTC officials would meet with the Solicitor General to map out their options in light of the Makati court’s order, which puts the deal on hold for 20 days.

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“We are studying the decision carefully,” Abaya said.

The House of Representatives’ committee on transportation likewise convened yesterday to tackle the government’s rail transport concerns and programs, the agency said. The Makati court has scheduled a hearing on Friday.

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DOTC said the MRT 3 capacity expansion project would result in significant improvements to the railway’s services. The project will replace the current 3-car trains arriving every three minutes with 4-car trains arriving every two-and-a-half minutes.

TAGS: court, DoTC, Philippines, rail transport

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