MRT-DOTC dispute: Arbitration starts

MANILA, Philippines - The arbitration case filed by the Metro Rail Transit Corp. (MRTC), owner of MRT-3, against the Department of Transportation and Communications (DOTC) before the Singapore International Arbitration Center started yesterday.

MRT Holdings spokesman David Narvasa said a notice of arbitration has been given to the DOTC on Jan. 21.

The dispute stemmed from the DOTC’s decision to purchase 48 light rail vehicles from CNR Dalian Locomotive & Rolling Stock Co. as part of the MRT-3 capacity expansion project despite an existing build-lease-transfer agreement with MRTC, which remains valid until 2025.

“The timetable will depend on how soon the arbitration tribunal can be constituted in Singapore. That is why the petition before the Makati regional trial court needed to be filed for interim relief,” Narvasa said in a statement.

Makati Presiding Judge Joselito Villarosa earlier granted MRTC’s prayer for a 20-day temporary restraining order.

“The arbitration case in Singapore will determine who has the rights to supply trains for MRT-3,” Narvasa added.