P3.8-B train supply deal with Chinese firm OK’d

MANILA, Philippines - The Court of Appeals (CA) has given the Department of Transportation (DOT) the green light on its P3.8-billion deal with a Chinese firm for the supply of brand new trains for the Metro Rail Transit (MRT) line that has been plagued with glitches over the past year.

In a 16-page decision released earlier this week, the 12th Division of the appellate court dismissed the petition of Metro Rail Transit Corp. (MRTC) and MRT Holdings II seeking to permanently stop the DOT from proceeding with its contract with Dalian Locomotive and Rolling Stock for the manufacture and supply of 48 light rail vehicles (LRVs).

The CA affirmed the order of the Makati City regional trial court that junked the claims of the MRT builders.

The CA said only the Supreme Court has the power to stop national government infrastructure projects under Republic Act No. 8975 (Alternative Dispute Resolution Act).

It stressed the purchase of 48 LRVs from Dalian is considered a national government project since it was included in the investment priorities plan approved by Congress.

The CA explained that lower courts could grant injunctive relief only if the matter is of extreme urgency involving a constitutional issue.

“Bare allegations or invocation that MRTC suffered grave injustice and irreparable injury considering that its constitutionally protected rights were violated will not automatically result in the issuance of an injunctive relief,” read the ruling penned by Associate Justice Maria Elisa Sempio Diy.

The CA also rejected as “highly speculative and conjectural” the argument of petitioners that they would suffer irreparable injury if the procurement deal proceeds, considering its pending arbitration case against the DOT for allegedly violating the 1997 build-lease-transfer (BLT) agreement to construct and maintain the MRT line.

“On the contrary, any damage and/or injury that petitioners may suffer due to the continued procurement of additional LRVs is, in fact, quantifiable and if proven, is fully compensable as damages,” the CA said.

In its petition, the MRT 3 builders said the DOT undertook the procurement through public bidding of additional LRVs without its consent or waiver of its right of first refusal in violation of their BLT agreement.

They said the DOTC’s procurement of LRVs from Dalian deviates from the principle of having a single point of responsibility which underlies the construction, operation and maintenance of the MRT line.