A Korean-Filipino joint venture company took over maintenance of the Metro Rail Transit 3 (MRT 3) on January 8, according to the Department of Transportation and Communications (DOTC).
The transport department said the P3.8-billion three-year contract with the joint venture of Busan Transportation Corporation, Edison Development and Construction, Tramat Mercantile, Inc., TMI Corp Inc., and Castan Corporation was also signed on the same date.
Transportation Secretary Joseph Emilio Abaya countered media reports that the Korean-led group was backing out of the deal.
“There was definitely no walkout. Busan’s vice president flew here with 12 Korean experts. They spent for this. They were ready to sign,” Abaya told reporters at a briefing on Friday.
The JV had won the deal to fulfil the general maintenance requirements of MRT 3 in a negotiated procurement last year.
“We are one step closer to having a safer and more reliable MRT-3 system with our new world-class rail maintenance service provider,” Abaya said in a press statement.
“With the operator of the Busan railway network in South Korea sharing their technical expertise, the riding public can expect an increase in the number of running trains and the efficiency of operations,” he added.
The joint venture will conduct maintenance work for the rolling stock and signaling system—the most critical maintenance discipline.
Twelve qualified technical experts, including rolling stock, signaling, and track specialists from Busan, are already carrying out transition and system assessment, according to DOTC.
The contract also covers the general overhaul of 43 coaches over the course of the agreement period, and the total replacement of the signaling system within 24 months.
DOTC said Busan Transportation has been operating and maintaining the Busan Metro, the four-railway-line mass transit system in Busan, South Korea since 1999, “demonstrating their capacity to manage the maintenance works and facility upgrades as stated in the contract.”
DOTC earlier pointed out that given the “urgent need” to address the railway’s maintenance requirements and the “core problems of obsolescence and complete wear-and-tear,” the Government Procurement Policy Board unanimously approved the transport agency’s proposal to proceed with an alternative mode of procurement pursuant to Republic Act No. 9184.
The Department of Justice and the National Economic and Development Authority also approved the negotiated procurement. The transport department noted that previous attempts to bid out the contract in September 2014 and in January of this year failed due to lack of bidders.
Photo from MRT 3 PH Facebook page
