Commercial spaces at MRT7 QMC station allowed to prevent fare hike, says DOTr

The Department of Transportation (DOTr) on Thursday clarified that it was the concessionaire which decided to open commercial spaces at the MRT7 Quezon Memorial Circle station.

The department had earlier said the concessionaire of the railway project will open business spaces in the station to avoid increase in fares or the amortization payment that will be covered by the government.

DOTr Assistant Secretary Goddes Hope Libiran explained that, in Public-Private Partnership (PPP) projects like MRT7, the concessionaire usually restore profit through three resources.

“Kapag PPP ang project, tatlo lang naman ang puwedeng pagkunan ng pambawi ng concessionaire: fare, government payment (annual grantor’s fee), payments derived from the development of the property,” she told GMA News Online.

“Hindi DOTr ang mago-open ng property for commercial lease. ‘Yung concessionaire yun. Even the design, concessionaire ang gumagawa,” she added.

The Universal LRT Corp. BVI Ltd. (ULC), led by the San Miguel Corp., is the concessionaire of the MRT7.

The Quezon City  government earlier issued a temporary cease and desist order on the aboveground construction of the station after authorities learned the project will affect the national heritage park.

According to the local government, the original plan was to construct a 2,500-square meter establishment aboveground but was expanded to 11,000 square meters without their knowledge.

The DOTr said the concessionaire’s design was changed because the original plan was based on a 2002 study. Libiran said the DOTr and the SMC are proposing to reduce the area of the station to preserve the national heritage park.

“Ang direksyon nga ng SMC and DOTr ay paliitin yung station to address the cultural and heritage preservation concerns of the QC LGU,” she said. —KBK, GMA News