WATCH | DOTr: Decision to terminate MRT-3 contract with BURI is final

November 6, 2017 - 5:31 PM
In file photo, DOTrPH Officials led by Undersecretary for Legal and Procurement Reinier Yebra, (now resigned) Undersecretary for Rails Cesar Chavez, Assistant Secretary for Procurement Giovanni Lopez, Assistant Secretary for Legal Affairs Steve Pastor and Metro Railway Transit 3 General Manager Rodolfo Garcia hold a press conference on the agency's final decision to terminate the contract of Busan Universal Railways Inc. (BURI), the maintenance provider of MRT3. HANDOUT PHOTO

MANILA – The Department of Transportation (DOTr) served Monday (November 6, 2017), its final decision to terminate its contract with Busan Universal Railways Inc. (BURI) for the maintenance of the Metro Railway Transit 3 (MRT-3) system, general overhauling of 43 Light Rail Vehicles (LRV), total replacement of its signaling system, and other additional maintenance works.

In a decision signed by DOTr Secretary Arthur Tugade dated November 3, DOTr said BURI had failed to address the issues raised in the Notice of Termination served to them last 17 October 2017, which cited the following reasons:

1. Poor performance;
2. Failure to put in service and subsequently ensure the availability of contractually obligated number of trains, and more importantly, for failure to put in operation reliable and efficient trains;
3. Failure to implement a feasible procurement plan for spare parts, as it in fact 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, and;
4. Failure to comply with the contractual requirements of a complete and up to date Computerized Maintenance Management System.

BURI has been contesting the DOTr allegations against it over the past few weeks, and accused department officials of not giving it due process.

DOTr, however, stood pat on its decision. “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 in a statement.

Tugade has signed, meanwhile, the establishment and composition of the MRT-3 Maintenance Transition Team (MTT) that will temporarily take over the maintenance works of MRT-3 while the procurement of a new maintenance provider is being processed.

In order to avoid service disruptions, technical personnel from BURI, whose roles are vital in MRT-3 maintenance works, shall be absorbed by the MRT-3.

The Philippine National Railways (PNR) and Light Rail Transit Authority (LRTA) are committed to provide sufficient technical support and expertise to ensure the smooth transition of MRT-3 maintenance works, the DOTr statement said.