DOTC to meet with LRT1 rehab winning contractor
August 13, 2013 | 10:08am
MANILA, Philippines - The Department of Transportation and Communications will meet on Tuesday the winning bidder in the P269 -million Light Rail Transit (LRT) 1 rehabilitation project to ensure that it fulfills its contractual obligation to the government.
The DOTC the said winning contractor, OMMC-KORAIL-Erin Marty-Jorgman joint venture, was supposed to begin actual replacement works by May this year.
However, the state agency received a letter from the joint venture, claiming that it would not be able to meet the project schedule since it could not obtain sufficient financing from lenders.
The rehabilitation contract was awarded to the joint venture November 2012 but was initially stalled due to certain procedural issues raised by the Commission on Audit . The audit issues have since been resolved, the DOTC said.
Last July 9, the DOTC wrote the joint venture, telling it that there was no impediment on the part of government preventing the private contractor from complying with its obligation.
The DOTC also warned the joint venture's failure to satisfy its obligations are grounds for liquidated damages and blacklisting.
Meanwhile, the DOTC and the Light Rail Transit Authority assured the public of the safety of the LRT 1 railway system despite the delay of the rehabilitation project.
LRTA Administrator Honorito Chaneco said the rails are not expected to reach the critical stage of deterioration until another three to four years.
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