Transport department serves MRT provider final notice to end contract

November 6, 2017

After trains of the Metro Railway Transit 3 (MRT-3) system broke down Friday night and Sunday morning, the Department of Transportation (DOTr) served on Monday its final decision to terminate its contract with Busan Universal Railways Inc. (BURI) for the maintenance of  the 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 Friday, the department cited the failure of BURI to address the issues raised in a notice of  termination served to them last October 17 2017.

The notice cited; poor performance; 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; 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; failure to comply with the contractual requirements of a complete and up to date computerized maintenance management system.

The contract with BURI, signed in 2016, was to end in 2019.

"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.

Tugade created an MRT-3 maintenance transition team that will temporarily take over the maintenance works of MRT-3 while getting a new maintenance provider is being processed.

Technical personnel from BURI, whose roles are vital in MRT-3 maintenance works, shall be absorbed by the MRT-3, the DOTr statement said.

The Philippine National Railways (PNR), and Light Rail Transit Authority (LRTA) will provide technical support and expertise to ensure the smooth transition of MRT-3 maintenance works. DMS