Gov’t threatens to blacklist LRT 1 contractor

MANILA, Philippines - The government has threatened to blacklist the contractor of the P269- million rail replacement project for the Light Rail Transit (LRT) line 1 for failing to start the rehabilitation work on time.

 The Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) have given the OMMC-KORAIL-Erin Marty-Jorgman joint venture until today to explain its failure to fulfill its obligations to the government.

 The joint venture bagged the LRT 1 rehabilitation project in November and was supposed to start rail replacement work last May.

The contractor informed the DOTC that it would not be able to meet the schedule as it was having difficulty in obtaining financing from financial institutions.

As early as July, the DOTC warned that the contractor’s failure to fulfill its obligations could be grounds for liquidated damages and blacklisting as mandated under the Uniform Guidelines for Blacklisting.

The DOTC said there was no impediment on the part of the government preventing the OMMC-KORAIL-Erin Marty-Jorgman from complying with the contract.

Meanwhile, the LRTA guarantees the safety of the LRT 1 system despite having old and overused tracks.

LRTA administrator Honorito Chaneco said the rails of LRT 1 were not expected to reach the critical stage of deterioration until another three to four years.

Chaneco said the LRTA is monitoring and applying all means to prevent the tracks from deterioration. He said the agency is reducing train speed and imposing passenger limit per platform to preserve the tracks.