Korean-Filipino firms bag MRT-3 maintenance deal

MANILA, Philippines – The Department of Transportation and Communications (DOTC) awarded the long-term maintenance contract of the Metro Rail Transit 3 system worth P3.81 billion to a Korean-Filipino group.

Starting Jan. 5, 2016, the winning concessionaire Joint Venture of of Busan Transportation Corp., Edison Development & Construction, Tramat Mercantile Inc., TMICorp Inc., and Castan Corp. will fulfill the general maintenance requirement for three years.

The group will handle the general overhaul of the trains and the total replacement of the signaling system covered in the P3.81-billion contract.

Given three years, the new service provider is expected to procure the necessary spare parts needed to increase the number of operating trains, especially during peak hours.

Due to this, the train system is expected to have significant improvements in its services.

The DOTC rolled out the bidding of the long-term maintenance contract in September 2014 and in January 2015. However, since the bidders were not participating, the bidding failed.

The transport agency then made an alternative mode of procurement as the Government Procurement Police Board (GPPB) recognized the urgent need to address the railway's maintenance requirement and the core problems of "obsolescence and complete, wear-and-tear." This is in pursuant to the Republic Act 9184.

Aside from the GPPB, the Department of Justice and the National Economic Development Authority also approved the mode of procurement.

The DOTC, in the meantime, engaged a subcontractor for the efficiency of maintenance works during the procurement of a long-term service provider. a long-term service provider.