Friday, October 20, 2017
LRMC cleans up Manila’s longest creek
DOTr ending MRT3 contract
The Department of Transportation issued a notice to terminate the three-year contract of Busan Universal Rail Inc. to maintain the Metro Rail Transit (MRT) Line 3 due to poor performance.
The DOTr said in a statement it gave BURI seven days to respond and submit a verified position paper stating why its contract should not be terminated.
“After which, the DOTr shall have 10 days, upon receipt of BURI’s response, to decide whether or not it will issue an order to terminate the entire contract,” the agency said.
The DOTr sent the notice to terminate to BURI on October 17.
Besides poor performance, the DOTr cited BURI’s failure to put service and subsequently ensure the availability of contractually obligated number of trains, and put reliable and efficient trains.
The company also failed to implement a feasible procurement plan for spare parts. The department said BURI failed to procure and store the required volume of spare parts, which affected its ability to effect immediate repairs on defective trains and other facilities of the MRT-3 system.
BURI also failed to comply with the contractual requirements of a complete and up-to-date computerized maintenance management system.
The DOTr in January 2016 signed a P3.8-billion three-year contract with the joint venture of Busan Transportation Corp., Edison Development & Construction, Tramat Mercantile Inc., TMICorp. and Castan Corp. to do maintenance works on the rolling stock and signaling system, the most critical maintenance component of MRT 3.
In a separate statement, BURI said it was confident it would be vindicated from the process of contract termination formally initiated by the DOTr.
BURI expressed confidence that through the process of arbitration that would start between the company and the DOTr, and other judicial remedies, the grounds raised by DOTr in its notice to terminate the contract would be proven to be without legal basis.
Regional Trial Court of Quezon City Branch 105 Rosa Samson on October 13 directed the DOTr and BURI to proceed with the arbitration proceedings as stated in the MRT3 contract.
“The allegation of poor performance against the service company will be met by evidence that BURI has delivered even more than what is required under its contract, together with its early accomplishment of fixing 26 cars to raise the number of running trains from 13 in January 2016, when it started servicing the system, to about 22 running trains at present,” BURI said.
The company added it met train availability requirements that served as the contract’s key performance indicators.
Documentary and technical evidence, as well as historical data, would also show that the charge of BURI liability for incidents of train removal, service interruptions, unloading and derailment in the MRT3 was misplaced.
“The system design concerns are further confirmed by the fact that the MRT3 suffered 1,492 glitches even during its first year of service in year 2000. At that time, the coaches and rails were brand new, and the passenger usage was well below present figures, and yet the system already suffered an average of 4 glitches per day,” BURI added.
The DOTr said in a statement it gave BURI seven days to respond and submit a verified position paper stating why its contract should not be terminated.
“After which, the DOTr shall have 10 days, upon receipt of BURI’s response, to decide whether or not it will issue an order to terminate the entire contract,” the agency said.
The DOTr sent the notice to terminate to BURI on October 17.
Besides poor performance, the DOTr cited BURI’s failure to put service and subsequently ensure the availability of contractually obligated number of trains, and put reliable and efficient trains.
The company also failed to implement a feasible procurement plan for spare parts. The department said BURI failed to procure and store the required volume of spare parts, which affected its ability to effect immediate repairs on defective trains and other facilities of the MRT-3 system.
BURI also failed to comply with the contractual requirements of a complete and up-to-date computerized maintenance management system.
The DOTr in January 2016 signed a P3.8-billion three-year contract with the joint venture of Busan Transportation Corp., Edison Development & Construction, Tramat Mercantile Inc., TMICorp. and Castan Corp. to do maintenance works on the rolling stock and signaling system, the most critical maintenance component of MRT 3.
In a separate statement, BURI said it was confident it would be vindicated from the process of contract termination formally initiated by the DOTr.
BURI expressed confidence that through the process of arbitration that would start between the company and the DOTr, and other judicial remedies, the grounds raised by DOTr in its notice to terminate the contract would be proven to be without legal basis.
Regional Trial Court of Quezon City Branch 105 Rosa Samson on October 13 directed the DOTr and BURI to proceed with the arbitration proceedings as stated in the MRT3 contract.
“The allegation of poor performance against the service company will be met by evidence that BURI has delivered even more than what is required under its contract, together with its early accomplishment of fixing 26 cars to raise the number of running trains from 13 in January 2016, when it started servicing the system, to about 22 running trains at present,” BURI said.
The company added it met train availability requirements that served as the contract’s key performance indicators.
Documentary and technical evidence, as well as historical data, would also show that the charge of BURI liability for incidents of train removal, service interruptions, unloading and derailment in the MRT3 was misplaced.
“The system design concerns are further confirmed by the fact that the MRT3 suffered 1,492 glitches even during its first year of service in year 2000. At that time, the coaches and rails were brand new, and the passenger usage was well below present figures, and yet the system already suffered an average of 4 glitches per day,” BURI added.
DOTr moves for termination of MRT maintenance deal
The Department of Transportation (DOTr) has issued a Notice of Termination to Metro Rail Transit Line 3 (MRT-3) maintenance service provider Busan Universal Rail Inc. (BURI) amid frequent breakdowns in the railway system.
The notice from DOTr Secretary Arthur Tugade issued on October 17 is the initial step towards ending the MRT maintenance deal with BURI, Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra said.
“The DOTr has issued a notice of termination of its MRT-3 contract to BURI due to various reasons: poor performance; failure to put in service and ensure the availability of contractually obligated number of trains and failure to put in operation reliable and efficient trains,” Yebra said in a statement Friday.
Among other reasons include failure to implement a feasible procurement plan for spare parts which impeded its ability to conduct immediate repairs on defective trains and other facilities of the MRT-3 system; and failure to comply with the requirements of a complete and up to date Computerized Maintenance Management System.
BURI was given seven days upon receipt of the notice to give its position paper on why the maintenance contract should not be terminated.
The DOTr will then issue an order whether or not to terminate the contract within 10 days upon receipt of BURI’s response.
The department will explore various options in choosing a new maintenance services provider for MRT-3 once it decides to terminate the current maintenance contract.
For its part, BURI earlier said it is asking the DOTr to submit the matter through arbitration proceedings as it reiterated its position that it has not been remiss in its performance as regards the maintenance of the railway system.
The maintenance service provider said that the immediate termination of its contract and withholding of payments due to them not only lacks due process but have also placed the MRT operations in peril.
The Quezon City Regional Trial Court (QC RTC) Branch 105 has issued an order last October 13 for DOTr and BURI to proceed with the arbitration proceedings as stated in the MRT-3 contract in accordance with Republic Act 9285 known as An Act to Institutionalize the Use of An Alternative Dispute Resolution System in the Philippines and to Establish the Office for Alternative Dispute Resolution and for Other Purposes.
QC RTC Presiding Judge Rosa Samson ordered DOTr and BURI to proceed with the arbitration proceedings before the Philippine Dispute Resolution Center Inc. (PDRCI), an agency in charge of assisting and resolving contractual and legal disputes between government and private entities.
“We are calling on the DOTr to abide by the court. We believe that at the end of the day, our actual performance and compliance with contractual obligations could help the DOTr see the light and avoid a protracted legal conflict,” BURI legal counsel and spokesperson Atty. Charles Mercado said in a statement.
BURI said the glitches are mainly due to the MRT’s design flaws and not maintenance issues.
The deterioration of the rails and passenger loading above the intended usage for the past few years only worsened the system’s condition and resulted in more glitches.
According to the firm, its operational fleet availability for MRT-3 is 91.67 percent (66 out of 72 cars) which is higher than LRT 1’s 74.82 percent (102 of 139 cars) and LRT 2’s 66.67 percent (48 of 72 cars).
“This figure of 91.67 percent represents a dramatic rise from the fleet availability of 55 percent when BURI took over the maintenance of the MRT-3 on January 2016, despite the significant increase of ridership of about 30% from 2000 when maintenance was still being undertaken by Sumitomo,” Mercado said.
BURI took over the maintenance operations of MRT-3 on January 2016 during the administration of former President Benigno Simeon C. Aquino III.
The notice from DOTr Secretary Arthur Tugade issued on October 17 is the initial step towards ending the MRT maintenance deal with BURI, Undersecretary for Legal Affairs and Procurement Reinier Paul Yebra said.
“The DOTr has issued a notice of termination of its MRT-3 contract to BURI due to various reasons: poor performance; failure to put in service and ensure the availability of contractually obligated number of trains and failure to put in operation reliable and efficient trains,” Yebra said in a statement Friday.
Among other reasons include failure to implement a feasible procurement plan for spare parts which impeded its ability to conduct immediate repairs on defective trains and other facilities of the MRT-3 system; and failure to comply with the requirements of a complete and up to date Computerized Maintenance Management System.
BURI was given seven days upon receipt of the notice to give its position paper on why the maintenance contract should not be terminated.
The DOTr will then issue an order whether or not to terminate the contract within 10 days upon receipt of BURI’s response.
The department will explore various options in choosing a new maintenance services provider for MRT-3 once it decides to terminate the current maintenance contract.
For its part, BURI earlier said it is asking the DOTr to submit the matter through arbitration proceedings as it reiterated its position that it has not been remiss in its performance as regards the maintenance of the railway system.
The maintenance service provider said that the immediate termination of its contract and withholding of payments due to them not only lacks due process but have also placed the MRT operations in peril.
The Quezon City Regional Trial Court (QC RTC) Branch 105 has issued an order last October 13 for DOTr and BURI to proceed with the arbitration proceedings as stated in the MRT-3 contract in accordance with Republic Act 9285 known as An Act to Institutionalize the Use of An Alternative Dispute Resolution System in the Philippines and to Establish the Office for Alternative Dispute Resolution and for Other Purposes.
QC RTC Presiding Judge Rosa Samson ordered DOTr and BURI to proceed with the arbitration proceedings before the Philippine Dispute Resolution Center Inc. (PDRCI), an agency in charge of assisting and resolving contractual and legal disputes between government and private entities.
“We are calling on the DOTr to abide by the court. We believe that at the end of the day, our actual performance and compliance with contractual obligations could help the DOTr see the light and avoid a protracted legal conflict,” BURI legal counsel and spokesperson Atty. Charles Mercado said in a statement.
BURI said the glitches are mainly due to the MRT’s design flaws and not maintenance issues.
The deterioration of the rails and passenger loading above the intended usage for the past few years only worsened the system’s condition and resulted in more glitches.
According to the firm, its operational fleet availability for MRT-3 is 91.67 percent (66 out of 72 cars) which is higher than LRT 1’s 74.82 percent (102 of 139 cars) and LRT 2’s 66.67 percent (48 of 72 cars).
“This figure of 91.67 percent represents a dramatic rise from the fleet availability of 55 percent when BURI took over the maintenance of the MRT-3 on January 2016, despite the significant increase of ridership of about 30% from 2000 when maintenance was still being undertaken by Sumitomo,” Mercado said.
BURI took over the maintenance operations of MRT-3 on January 2016 during the administration of former President Benigno Simeon C. Aquino III.
LOOK: LRT-2 gets new elevator, excalators
Today, the Manila Light Rail Transit System Line 2 (LRT Line 2) launched a new conveyance system which will provide passengers with ease in accessing the said train system.
The new conveyance system consists of 32 elevators and 13 escalators.
The Department of Transportation (DOTr) said the replacement of LRT Line 2’s conveyance system is part of the multiyear rehabilitation program aimed at providing convenience and comfort to the public.
LRT Line 2 Administrator Reynaldo Berroya led the launching of new conveyance system.
He said that after 15 years, LRT Line 2’s conveyance system has been replaced by new ones. “Matagal naghirap mananakay natin,” he added.
The new conveyance system consists of 32 elevators and 13 escalators.
The Department of Transportation (DOTr) said the replacement of LRT Line 2’s conveyance system is part of the multiyear rehabilitation program aimed at providing convenience and comfort to the public.
LRT Line 2 Administrator Reynaldo Berroya led the launching of new conveyance system.
He said that after 15 years, LRT Line 2’s conveyance system has been replaced by new ones. “Matagal naghirap mananakay natin,” he added.
MRT-3 preparing to remove Busan
MRT-3 engineers are said to be gearing up to assume maintenance of the rotting commuter railway. This, as the mother Dept. of Transport came closer Tuesday to firing the sloppy Korean contractor Busan and four Filipino partners.
The MRT-3 depot is bustling with preparations for a transfer of daily upkeep and repairs from outsiders to in-house. There should be no disruption of operations, so the transfer should be smooth, Sec. Arthur Tugade told The STAR.
Busan et al were given five days to explain its unfulfilled contract obligations that have caused thrice daily breakdowns of trains. Failure to do so would mean contract termination. Busan would be made to depart in another 10 days, Tugade said.
The five-day deadline for Busan to explain and 10-day decision period for the DOTr are part of the legal process of contract termination. “The process is in place, parties have been informed, programs will be calibrated,” Tugade said.
Last week the Quezon City regional trial court declined Busan’s petition for an “interim measure of protection,” or temporary restraining order on its termination from the MRT-3. The judge enjoined the contenders to work things out themselves, based on the contract.
Tugade would not say who will be taking over the maintenance, apart from assuring to “protect the interest of the riding public.”
Earlier his Railways Usec. Cesar Chavez planned a “maintenance transition team” in case Tugade fires Busan once and for all. Chavez envisioned the transition to last only three months, by which time a new contractor shall be picked by open public bidding.
The team would consist of engineers of MRT-3 and sister Light Rail Transit Authority, which Chavez managed in the 2000s. He would also retain Busan’s technicians, who were with Sumitomo when that Japanese giant handled MRT-3 in 2000-2012.
A succession of unknown outfits close to the then-ruling Liberal Party grabbed the maintenance deal but kept Sumitomo’s technicians. Those interrelated firms PH Trams, Global Epcom, and then Busan et al allegedly stinted on spare parts, so MRT-3 rapidly deteriorated. Every Christmastime families of the technicians would decry delayed salaries.
Chavez twice has recommended to Tugade Busan’s firing for frequent breakdowns, contrary to its obligation for safe, comfortable, reliable rides. MRT-3 general manager Rodolfo Garcia has confirmed the shoddy maintenance.
Usec. for Legal Reinier Yebra also deems Busan’s contract void from the start. Past transport officials secretly had negotiated the juicy P3.8-billion deal with Korea’s Busan Transport Co. and inexperienced Filipino partners. It then granted the contract to undercapitalized newbie Busan Universal Rail Inc. The latter in turn merely subcontracted Busan of Korea.
The smooth turnover of maintenance is Garcia’s responsibility; the legalities are Yebra’s. Tugade said he wants all parties to cooperate and guard against sabotage during transition. In late Dec. 2015 Busan et al’s takeover was disrupted several days by turnover snafus, which they blamed on the outgoing temporary servicer.
* * *
TALKBACK: On the jeepney strike earlier this week, reader Gus Paguntalan of Quezon City writes: “Our government should not be held hostage by those transport groups. The government should subject the units of those strikers to emission test. Those who fail should not be allowed to ply the streets. Random tests should also be done by an independent organization to validate the test result done by emission testing companies. Testing companies found to ‘doctor’ their test results should be closed down. Strict implementation of the Clean Air Act would rid our streets of dilapidated vehicles.”
On the jeepney phase-out: Tony C., Quezon City: “The jeepney modernization is not just about the outdated units. Along with modernization comes the professionalization of the management of this public utility variant. Management does not refer only to maintenance but a total program that would uplift the capabilities, knowledge, and overall efficiency of the transport system. The modernization offers these transport groups a chance. It’s so typical of Filipinos to be very resistant to change. One can’t differentiate if this is out of ignorance or laziness.”
On motorists’ exasperation with jeepneys blocking traffic: Del Bustria, Caloocan City: “To ease traffic, jeepney members of Piston should be banned from the streets on Mondays, Fejodap on Tuesdays, PCDO-Acto on Wednesdays, Pasang Masda on Thursdays, Stop & Go on Fridays. then free-for-all on weekends. Joke, joke, joke!”
* * *
Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).
Gotcha archives on Facebook: https://www.facebook.com/pages/Jarius-Bondoc/1376602159218459, or The STAR website http://www.philstar.com/author/Jarius%20Bondoc/GOTCHA
The MRT-3 depot is bustling with preparations for a transfer of daily upkeep and repairs from outsiders to in-house. There should be no disruption of operations, so the transfer should be smooth, Sec. Arthur Tugade told The STAR.
Busan et al were given five days to explain its unfulfilled contract obligations that have caused thrice daily breakdowns of trains. Failure to do so would mean contract termination. Busan would be made to depart in another 10 days, Tugade said.
The five-day deadline for Busan to explain and 10-day decision period for the DOTr are part of the legal process of contract termination. “The process is in place, parties have been informed, programs will be calibrated,” Tugade said.
Last week the Quezon City regional trial court declined Busan’s petition for an “interim measure of protection,” or temporary restraining order on its termination from the MRT-3. The judge enjoined the contenders to work things out themselves, based on the contract.
Tugade would not say who will be taking over the maintenance, apart from assuring to “protect the interest of the riding public.”
Earlier his Railways Usec. Cesar Chavez planned a “maintenance transition team” in case Tugade fires Busan once and for all. Chavez envisioned the transition to last only three months, by which time a new contractor shall be picked by open public bidding.
The team would consist of engineers of MRT-3 and sister Light Rail Transit Authority, which Chavez managed in the 2000s. He would also retain Busan’s technicians, who were with Sumitomo when that Japanese giant handled MRT-3 in 2000-2012.
A succession of unknown outfits close to the then-ruling Liberal Party grabbed the maintenance deal but kept Sumitomo’s technicians. Those interrelated firms PH Trams, Global Epcom, and then Busan et al allegedly stinted on spare parts, so MRT-3 rapidly deteriorated. Every Christmastime families of the technicians would decry delayed salaries.
Chavez twice has recommended to Tugade Busan’s firing for frequent breakdowns, contrary to its obligation for safe, comfortable, reliable rides. MRT-3 general manager Rodolfo Garcia has confirmed the shoddy maintenance.
Usec. for Legal Reinier Yebra also deems Busan’s contract void from the start. Past transport officials secretly had negotiated the juicy P3.8-billion deal with Korea’s Busan Transport Co. and inexperienced Filipino partners. It then granted the contract to undercapitalized newbie Busan Universal Rail Inc. The latter in turn merely subcontracted Busan of Korea.
The smooth turnover of maintenance is Garcia’s responsibility; the legalities are Yebra’s. Tugade said he wants all parties to cooperate and guard against sabotage during transition. In late Dec. 2015 Busan et al’s takeover was disrupted several days by turnover snafus, which they blamed on the outgoing temporary servicer.
* * *
TALKBACK: On the jeepney strike earlier this week, reader Gus Paguntalan of Quezon City writes: “Our government should not be held hostage by those transport groups. The government should subject the units of those strikers to emission test. Those who fail should not be allowed to ply the streets. Random tests should also be done by an independent organization to validate the test result done by emission testing companies. Testing companies found to ‘doctor’ their test results should be closed down. Strict implementation of the Clean Air Act would rid our streets of dilapidated vehicles.”
On the jeepney phase-out: Tony C., Quezon City: “The jeepney modernization is not just about the outdated units. Along with modernization comes the professionalization of the management of this public utility variant. Management does not refer only to maintenance but a total program that would uplift the capabilities, knowledge, and overall efficiency of the transport system. The modernization offers these transport groups a chance. It’s so typical of Filipinos to be very resistant to change. One can’t differentiate if this is out of ignorance or laziness.”
On motorists’ exasperation with jeepneys blocking traffic: Del Bustria, Caloocan City: “To ease traffic, jeepney members of Piston should be banned from the streets on Mondays, Fejodap on Tuesdays, PCDO-Acto on Wednesdays, Pasang Masda on Thursdays, Stop & Go on Fridays. then free-for-all on weekends. Joke, joke, joke!”
* * *
Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).
Gotcha archives on Facebook: https://www.facebook.com/pages/Jarius-Bondoc/1376602159218459, or The STAR website http://www.philstar.com/author/Jarius%20Bondoc/GOTCHA