Saturday, March 15, 2014

Collusion, unfair practice behind transfer of common station project from SM to Trinoma?

Kabataan Partylist Rep. Terry Ridon has called on Congress to review the changes made by the Department of Transportation and Communications (DOTC) to the MRT-LRT Common Station project, primarily the transfer from the original SM City North EDSA project site to Trinoma Mall.

“The unwarranted and arbitrary transfer of the project location for the proposed common station that would connect MRT3, LRT1 and the proposed MRT7 train lines is highly suspicious. Collusion and unfair practice may have been committed to push for the said change,” said Ridon, who is a member of the House Committee on Transportation.

In House Resolution No. 961 that Ridon filed this afternoon, the youth legislator asked the Committee on Transportation and the Committee on Good Government and Public Accountability “acting either jointly or separately, to conduct an inquiry, in aid of legislation, on the possible issues of collusion and/or unfair practice committed by government officials and business entities involved in the transfer of the LRT Line 1 North Extension Program–Common Station Project from the originally proposed SM City North EDSA location to the currently proposed Trinoma Mall location.”

“DOTC has not provided any compelling reason to revise the specifications of a project that has already been approved five years ago, back in 2009…It changed the specifications of the Common Station project without the benefit of public scrutiny,” Ridon said in HR 961.

Arbitrary changes

The Common Station project was first finalized during the time of former President Gloria Macapagal Arroyo.

Under the project specifications approved by the National Economic and Development Authority (NEDA) Board back in July 7, 2009, it was envisioned that the existing LRT1 and MRT3 rails be partially extended and connected to the proposed SM City North EDSA station of the MRT7, a planned 23-kilometer train line from EDSA to San Jose del Monte Bulacan.

Under such design, there would only be one central terminal located in SM North EDSA for the three train lines.

However, when President Benigno Aquino III came to power in 2010, the project was stalled indefinitely. Then DOTC Secretary Manuel Roxas II ordered a review of the project, and the agency proceeded to change certain project specifications. Because of political issues, the project was stalled indefinitely due to the arrest and detention of former Philippine President Gloria Macapagal-Arroyo from a controversy in November 2011, the impeachment trial of former Philippine Supreme Court Chief Justice Renato Corona in January 2012 and questioning funds from the mall operator.

On May 2013, the DOTC – under the helm of current Secretary Joseph Emilio Abaya – announced the possibility of transferring the location of Common Station project from SM City North EDSA to Trinoma Mall, which is owned and operated by Ayala Corporation.

DOTC explained that the government stands to save up to P1 billion if the common station is built in Trinoma rather than SM City North EDSA. Sec. Abaya also explained that constructing the common station at SM City North EDSA would result to “urban blight.”

By November 2013, the DOTC announced that it has endorsed to the NEDA Board the “construction of head-to-head platforms for LRT1 and MRT3 at Trinoma with 147.5 meters elevated walkalator to MRT7 at North Avenue station.”

Subsequently, on November 25, the NEDA Board chaired by President Aquino approved the revised project with a budget of P1.4 billion. DOTC expects the bidding for the project to commence within the first half of the year.

‘Erroneous estimate’

“DOTC may have erroneously estimated the P1-billion savings resulting from the transfer of the Common Station project location to Trinoma Mall, as the agency is comparing two projects with different specifications,” Ridon explained in HR 961.

The original project involved the building of a common station for three train lines, while the current project involves just the construction of an LRT1 station parallel to the existing MRT3 North Avenue Station and a walkalator to connect the two stations to the proposed MRT7 station in SM North EDSA, Ridon explained.

“It’s wrong to compare the cost of two starkly different infrastructure projects,” he pointed out.

“DOTC’s current project design for the MRT-LRT common station also defeats the purpose of the project, which is to provide for easy passenger transfer between the train lines. The current design in fact cannot be considered a common station as it only involves building infrastructure to connect three separate terminals,” the legislator explained.

Unfair practice?

Ridon said that the sudden and unwarranted change of location and specifications for the Common Station project “may have been the result of collusion and unfair practice.”

“The DOTC along with the NEDA Board chaired by President Aquino, might have given Ayala Corporation and other business entities involved in the project unwarranted benefits, advantages or preference, in opting to change the location and specifications of the Common Station project from SM City North EDSA to Trinoma Mall,” Ridon explained.

“The common station project in its current form might prove to be a disadvantageous deal that compromises the welfare of the riding public. Congress should thus investigate the deal even before DOTC opens the bidding process,” he ended.