DOTr Serves Final Decision to Terminate Contract with BURI on MRT-3

The Department of Transportation (DOTr) served today, 6 November 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 03 November 2017, DOTr noted the failure of BURI 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.

“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,” Secretary Tugade said.

Along with this, DOTr Sec. Tugade signed 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.

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