The Department of Transportation (DOTr) yesterday took over the maintenance of Metro Rail Transit Line 3 (MRT 3) following the termination of the P3.8-billion contract of Busan Universal Railways Inc. (BURI) more than a year ahead of its January 2019 expiry.
DOTr served the final decision to terminate BURI’s three-year contract involving the maintenance of the system, general overhaul of 43 light rail vehicles (LRV), total replacement of its signaling system and other additional maintenance works.
In the Nov. 3, 2017 decision, DOTr secretary Arthur Tugade said BURI failed to address the issues raised in the notice of termination served to the company last Oct. 17, 2017: poor maintenance, failure to put in operation reliable and efficient trains; failure to implement a feasible procurement plan for spare parts and; failure to comply with the contractual requirements of a complete and up to date Computerized Maintenance Management System.
“It cannot be overemphasized that what is at stake here is the welfare and interest of the riding public... This office could not just sit back and wait while watching BURI trifle and flirt with the lives of the commuting public with its substandard performance,” Tugade said.
Along with this, Tugade signed the establishment and composition of the MRT-3 Maintenance Transition Team that will temporarily take over the maintenance works of MRT-3 while the procurement of a new maintenance provider is being processed.
The government will auction off or enter into a negotiated bid with another party which would officially replace BURI as maintenance provider.
In order to avoid service disruptions, DOTr said MRT-3 will absorb the technical personnel from BURI, whose roles are vital in MRT-3 maintenance works.
Other government agencies such as Philippine National Railways and Light Rail Transit Authority have committed to provide sufficient technical support and expertise to ensure the smooth transition of MRT-3 maintenance works.
DOTr issued the notice of termination just a week after the Regional Trial Court in Quezon City ordered DOTr and BURI to proceed with the arbitration proceedings before the Philippine Dispute Resolution Center Inc. to settle their issues over the contract.
BURI in response to that notice said it will pursue legal battle against the DOTr even as it would abide by the court’s order to pursue arbitration.
BURI meanwhile called for the recall of the notice of termination.
Charles Mercado, BURI spokesperson, yesterday said procedural and substantive infirmities committed by the DOTr in its notice of termination should convince the latter to recall the same.
BURI said the grounds stated in DOTr’s notice to terminate do not constitute factual or legal bases for the termination of its contract as it reiterated that train removals, service interruptions and derailment were not caused by poor maintenance but rather by system and design flaws and the deteriorated track condition of the MRT 3 concerns that to date remain unattended by DOTr.
Mercado said DOTr and not BURI was the one in default the contract.
As of Oct. 9, 2017, the total amount due and unpaid to BURI has reached P348 million and another P54 million due this month..
The amount includes the P18.5 million BURI is supposed to be paid for the completion of 7,200 meters rail installation and the P42 million for the general overhaul of cars.
The company said those amounts, if timely paid could have been put into good use such as for continued improvement of services of the MRT-3.
BURI said it is unfair the DOTr demands compliance of BURI’s obligations and yet it refuses to comply with what are incumbent upon it to perform .
DOTr served the final decision to terminate BURI’s three-year contract involving the maintenance of the system, general overhaul of 43 light rail vehicles (LRV), total replacement of its signaling system and other additional maintenance works.
In the Nov. 3, 2017 decision, DOTr secretary Arthur Tugade said BURI failed to address the issues raised in the notice of termination served to the company last Oct. 17, 2017: poor maintenance, failure to put in operation reliable and efficient trains; failure to implement a feasible procurement plan for spare parts and; failure to comply with the contractual requirements of a complete and up to date Computerized Maintenance Management System.
“It cannot be overemphasized that what is at stake here is the welfare and interest of the riding public... This office could not just sit back and wait while watching BURI trifle and flirt with the lives of the commuting public with its substandard performance,” Tugade said.
Along with this, Tugade signed the establishment and composition of the MRT-3 Maintenance Transition Team that will temporarily take over the maintenance works of MRT-3 while the procurement of a new maintenance provider is being processed.
The government will auction off or enter into a negotiated bid with another party which would officially replace BURI as maintenance provider.
In order to avoid service disruptions, DOTr said MRT-3 will absorb the technical personnel from BURI, whose roles are vital in MRT-3 maintenance works.
Other government agencies such as Philippine National Railways and Light Rail Transit Authority have committed to provide sufficient technical support and expertise to ensure the smooth transition of MRT-3 maintenance works.
DOTr issued the notice of termination just a week after the Regional Trial Court in Quezon City ordered DOTr and BURI to proceed with the arbitration proceedings before the Philippine Dispute Resolution Center Inc. to settle their issues over the contract.
BURI in response to that notice said it will pursue legal battle against the DOTr even as it would abide by the court’s order to pursue arbitration.
BURI meanwhile called for the recall of the notice of termination.
Charles Mercado, BURI spokesperson, yesterday said procedural and substantive infirmities committed by the DOTr in its notice of termination should convince the latter to recall the same.
BURI said the grounds stated in DOTr’s notice to terminate do not constitute factual or legal bases for the termination of its contract as it reiterated that train removals, service interruptions and derailment were not caused by poor maintenance but rather by system and design flaws and the deteriorated track condition of the MRT 3 concerns that to date remain unattended by DOTr.
Mercado said DOTr and not BURI was the one in default the contract.
As of Oct. 9, 2017, the total amount due and unpaid to BURI has reached P348 million and another P54 million due this month..
The amount includes the P18.5 million BURI is supposed to be paid for the completion of 7,200 meters rail installation and the P42 million for the general overhaul of cars.
The company said those amounts, if timely paid could have been put into good use such as for continued improvement of services of the MRT-3.
BURI said it is unfair the DOTr demands compliance of BURI’s obligations and yet it refuses to comply with what are incumbent upon it to perform .
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