DOTC extends contract of MRT 3 interim service provider

MANILA, Philippines - The Department of Transportation and Communications (DOTC) has extended anew the interim contract for the maintenance contractor of Metro Rail Transit 3 (MRT3) along EDSA due to the delay in the bidding process.

Transportation Secretary Joseph Emilio Abaya said the agency has extended the contract for the provision of interim maintenance services for MRT3 of the PH Trams CB & T joint venture for a total consideration of $2.3 million for another two months.

This is the second time that the interim contract has been extended due to the delay in the bidding process. Last April, the DOTC extended the six-month interim contract of PH Trams that expired last April 19. The first two-month extension worth $2.3 million expired last June 19.

In a notice of award addressed to PH Trams president Roehl Bacar, Abaya said the agency has extended the contract for the provision of interim maintenance services for MRT3 to PH Trams for a total consideration of $2.3 million.

Last October, the DOTC awarded a contract for the maintenance of the MRT3 to PH Trams. The interim maintenance provider of the MRT 3 is for six months while it conducts the procurement process for a regular maintenance provider for the train line.

PH Trams was awarded the contract as it offered the lowest monthly maintenance cost of $1.15 million compared to two other firms which submitted proposals such as Sumitomo TES-P Inc. and Miescor Railway/Genials JV.

The contract between the Metro Rail Transit Corp. (MRTC) and Japanese firm Sumitomo Corp. has been extended four times.

Abaya explained that the extension is merely an emergency measure to maintain status quo in the operations of the DOTC and to avoid interruption of service and that the current service provider has not violated any provision of the original contract.

He added that the contract extension is being undertaken due to circumstances beyond its control and that the agency could not award a new contract within a month after the expiration of the original contract.

The DOTC is still in the process of conducting a public bidding for the provision of a one-year temporary maintenance service contract for MRT3 system worth P712.77 million.

The DOTC is now conducting bid evaluation and post-qualification for the MRT3 interim maintenance service provider wherein Autre Porte Technique Global Inc. qualified with a bid of P685 million while the tandem of Asiaphil Manufacturing Industries Inc. and Korea Railroad as well as Commbuilders & Technology Philippines Corp. failed to qualify.

The DOTC is pursuing the complete government takeover of the MRT3 so it could bid out the complete operation and maintenance of the mass transit system.

President Aquino has issued EO 126 last March directing the DOTC and the Department of Finance (DOF) to buy out MRT3 from MRTC pursuant to a build-lease-transfer (BLT) agreement.