DOTC says MOA with SM on common station has expired

MANILA, Philippines - The Department of Transportation and Communications (DOTC) said yesterday the agreement with the SM Prime Holdings on the location of the proposed P1.4 billion Metro Rail Transit and Light Rail Transit (MRT-LRT) common station expired more than three years ago.

Michael Arthur Sagcal, DOTC spokesperson, said the memorandum of agreement signed by SM Prime Holdings Inc. and the Light Rail Transit Authority (LRTA) that was approved by the National Economic and Development Authority (NEDA) in July 2009 already lapsed in 2011.

SM Prime filed a case against the DOTC and LRTA before the Pasay City regional trial court early this month seeking an injunction to stop the government from relocating the planned common station to the Trinoma Mall instead of SM North EDSA mall.

“First of all, the NEDA approval that SMPHI is referring to expired in 2011.  The 2013 NEDA approval, which is in effect, allows the Common Station to be built in the more advantageous location at MRT3,” Sagcal said.

The proposed common station would connect the LRT1, MRT3, and the future proposed MRT7 of diversified conglomerate San Miguel Corp.

The MOA also stated that SM would have the naming rights to the proposed common station in exchange for P200 million.

“Secondly, SMPHI was publicly quoted through its president in 2013 as saying that it does not mind where the common station is built, as long as it can exercise its alleged naming rights,” Sagcal said.

Earlier, Transportation Secretary Joseph Emilio Abaya said the government stands to save between P800 million and P1 billion if the proposed common station is constructed near the Trinoma mall instead of the SM North Edsa mall.

“A crucial feature in transportation development is intermodality. Commuters should not have to walk long distances to transfer from one mode of transport to another. Our policy is to promote traveling convenience and efficiency for commuters, which is why we have chosen the end of the MRT-3 line as Common Station’s location,” Sagcal explained.

He reiterated that only the Supreme Court could issue a temporary restraining order (TRO) or injunction stopping major infrastructure project.