Why SM is suing DOTC over LRT-MRT common station

Posted at 06/05/14 5:13 PM

MANILA, Philippines - SM Prime Holdings is urging the Department of Transportation and Communications (DOTC) to honor the 2009 agreement it made with the property developer over the location of a “common station” linking Light Rail Transit Line 1, Metro Rail Transit (MRT) Line 3, and MRT-7.

SM Prime’s legal counsel Atty. Ryan San Juan said the contract, which states that the station will be located in front of SM North EDSA, remains valid.

“What we are asking is for the DOTC to honor its obligations under the validly executed contract with us. We filed for an injunction, but that injunction is only to the extent it will prohibit DOTC and LRTA from acting inconsistent with what the terms of our contract states. It doesn’t stop any bidding, it doesn’t stop any activity of the government, it’s just that we want the government to honor its obligation,” he told ANC.

DOTC earlier this year announced that the common station will be located near Ayala Land’s Trinoma mall.

However, SM has already secured naming rights to the common station for P200 million, but DOTC said it is open to refunding the full amount to SM.

San Juan, however, said SM has already made investments in relation to the common station.

“It’s not as easy as returning the money, a contract is a contract. As early as 2006, when all of this was being studied by all stakeholders, we redeveloped SM North EDSA having this in consideration; we have participated many technical planning sessions with the LRTA; we’ve had many investments already into this contract,” he said.

ANC News Now, June 5, 2014