DOTr serves MRT-3 maintenance provider notice to terminate contract

The Department of Transportation has given Busan Universal Rail Inc. (BURI) seven days to explain why its maintenance contract covering the Metro Rail Transit Line 3 (MRT-3) should not be terminated.

The department said on Friday that BURI was served a Notice to Terminate its MRT-3 contract on Tuesday, October 17, on the basis of four compelling reasons.

The notice cited the following reasons:

• Poor performance

• Failure to put in service and subsequently ensure the availability of contractually obligated number of trains, and more importantly, for failure to put in operation reliable and efficient trains

• Failure to implement a feasible procurement plan for spare parts, as it in fact failed to procure and store the required volume of spare parts, which affected its ability to effect immediate repairs on defective trains and other facilities of the MRT-3 system

• Failure to comply with the contractual requirements of a complete and up to date Computerized Maintenance Management System

The grounds raised by DOTr will be proven to be "bereft of factual and legal basis," BURI said in a separate statement.

The MRT-3 maintenance provider also emphasized that it is positive about getting vindicated from such allegations.

"Further, please be informed that BURI was given seven calendar days upon its receipt of the notice to respond and submit a verified position paper stating why its contract should not be terminated," the DOTr said.

The DOTr has 10 days after receiving BURI's response to decide whether or not it will issue an order to terminate the entire contract, the DOTr added. — VDS, GMA News