The Department of Transportation (DOTr) on Wednesday said it is ready to face the arbitration case filed by Light Rail Transit Line 1’s (LRT1) private operator on its inaction on the latter’s petitions to hike fares on the railway system.
“On the notice of arbitration filed, this is of course being studied by our legal department as well as the DOTr’s counsel, the Office of the Solicitor General. We will handle this according to the concession agreement,” Transportation Undersecretary for Railways Timothy John Batan said at a virtual press briefing.
Light Rail Manila Corp., the operator of LRT1, has filed on May 6 a request for arbitration with the International Chamber of Commerce as it seeks to recover from the government approximately P2.67 billion, resulting from the “long-overdue fare adjustments for 2016, 2018, and 2020.”
Batan, however, explained that the DOTr was unable to grant LRMC’s fare hike petitions “considering the current environment, with rising inflation and commodity prices.”
LRMC’s request pertains to the adjustment of the approved fare for the years 2016, 2018, and 2020 and LRMC’s claims for compensation relating to the grantors’ contractual obligations to compensate LRMC for the difference between the stipulated fare and the approved fare based on the schedule provided in the CA (concession agreement), following the grantors’ inaction on LRMC’s application for fare adjustments based on the CA, according to its parent Metro Pacific Investments Corp. (MPIC).
“LRMC believes that the settlement of these claims is critical to enable it to continue to be viable and provide safe, efficient, and reliable services to the public,” said MPIC.
“Notwithstanding the dispute, LRMC remains committed in providing the best possible services to the public. In fact, despite the non-performance by the grantors of their obligations and the non-payment of LRMC’s claims, LRMC has implemented significant operational improvements, rehabilitation projects, and system upgrades to the existing system and continued the construction of the Cavite Extension safely and efficiently,” the conglomerate said.—AOL, GMA News
DOTr ready to face arbitration on LRT1 fare hike petitions
Source: News Panda Philippines
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