Transport department warns of ending MRT3 contract ahead of schedule  

April 21, 2017

The transportation department on Friday warned it will end a three-year maintenance contract of Busan Universal Rail Inc scheduled to end in 2019. due to service disruptions at  Metro Rail Transit (MRT) Line 3. "With series of serious incidents that have transpired in the past and most recently, you are hereby directed to explain within in seven days from receipt hereof why subject contract not be terminated in accordance with the provisions of law and contract on termination for convenience and failure to satisfactorily perform work obligations,” Transport Undersecretary for Railways Cesar Chavez Jr., said in a letter to Busan dated April 19. Chavez said from January to April 19, 116 unloading incidents at MRT3 took place due to technical problems. In 2016, there were 586 unloading incidents. "We also commence the partial termination process for contracts signaling and general overhaul [of Busan],” Chavez said. Busan’s general overhauling of 43 trains contract cost P907.4 million, while replacing the signaling system amounted to P888 million. Busan said it has put 65 train cars in good running condition or an average of two to three trains restored since its contract started in January  2016. It added average passengers have increased to almost half a million after 26 cars were put in working order since early 2016. The company said it signed a three-year deal costing P3.8 billion to overhaul  43 coaches,   undertake maintenance work of the rolling stock and signalling system of MRT3. DMS.