Wednesday, November 22, 2017

MRTC ready to get back Sumitomo as MRT 3 maintenance provider

Sumitomo Corp., the Japanese company that designed, built, and maintained the MRT-3 System for 12 years, is willing to return as the maintenance contractor of the MRT if contracted by MRT Corp.

“Sumitomo has confirmed its willingness to return as the maintenance contractor of MRTC if we hire them,” Frederick Parayno, President of MRT Corp. said in an interview.

By virtue of the Build-Lease-Transfer Agreement between the Philippine government and MRT Corp., it is the right of MRT Corp. to choose and hire the maintenance contractor for the MRT-3 System, as it is in their greater interest as owners of the asset that is the MRT.

The responsibility of hiring the maintenance contractor was acquired by the Department of Transportation during the term of former Secretary Joseph Emilio Abaya when it refused to renew the contract of Sumitomo and instead hired without bidding and through a negotiated contract PH Trams.

MRT Corp. has already officially written DOTr that it has an offer for a fast track rehabilitation proposal that will be undertaken by Sumitomo Corp.

The proposal will see the owners infuse US $150 million to rehabilitate the MRT.

This will include the full rehabilitation and maintenance of the trains, in order to restore the system to accommodate over 550,000 passengers per day and allow effective capacity expansion.

The rehabilitation will include the purchase of spare parts, with a value of at least 50 million US dollars.

MRTC would also hire at least 100 engineers for a full inspection of the MRT to be completed within 30 days, in preparation for the fast-track rehabilitation of the MRT which private sector experts estimate can be achieved within a period of 26 months.

MRTC has discussed at length with Sumitomo Corp. the possible rehabilitation of the MRT-3 System. The discussions have concluded that the rehabilitation will include a complete overhaul of all 73 cars of the entire MRT-3 line; rehabilitation of all systems including the MRT-3’s power system and signalling system; replacement of broken rails; maintenance for two years while undergoing rehabilitation; rehabilitation of station facilities such as elevators and escalators; and the purchase of R50 million US$ worth of spare parts.

In its letter to President Rodrigo Duterte, MRTC even invited DOTr to join them in their meetings with Sumitomo Corp.

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