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DOTr terminates Busan Universal contract as MRT-3 maintenance provider


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A southbound train leaves the MRT-3 GMA Kamuning Station at 2:04 p.m. on Monday, Nov. 6, 2017. The Department of Transportation has served Busan Universal Railway Inc. a notice of contract termination earlier Monday as maintenance provider of the Metro Rail Transit Line 3. Photo by Victor Sollorano, GMA News
A southbound train leaves the MRT-3 GMA Kamuning Station at 2:04 p.m. on Monday, Nov. 6, 2017. The Department of Transportation earlier Monday served Busan Universal Railway Inc. a notice of contract termination as maintenance provider of the Metro Rail Transit Line 3. Photo by Victor Sollorano, GMA News


The Department of Transportation (DOTr) has terminated Busan Universal Railways Inc.'s contract as maintenance provider of the Metro Rail Transit Line 3 (MRT-3).

"The Department of Transportation served today, 6 November 2017, its final decision to terminate its contract with Busan Universal Railways Inc. (BURI)," the DOTr said in a statement sent to reporters via text message.

The contract covers the general overhauling of 43 Light Rail Vehicles (LRV), the total replacement of the signaling system, and other additional maintenance works.

The DOTr cited the following reasons for ending its contract with BURI:

  • Poor performance
  • Failure to put in service and subsequently ensure the availability of the contractually obligated number of trains, and failure to put in operation reliable and efficient trains
  • Failure to implement a feasible procurement plan for spare parts
  • Failure to comply with the contractual requirements of a complete and up to date Computerized Maintenance Management System

"It cannot be overemphasized that what is at stake here is the welfare and interest of the riding public ... This office could not just sit back and wait while watching BURI trifle and flirt with the lives of the commuting public, with its substandard performance," Transportation Secretary Arthur Tugade said.

BURI said last month it was confident of hurdling the process of contract termination initiated by the DOTr.

"Through the process of arbitration that will commence between BURI and the DOTr, and other judicial remedies BURI is considering, the grounds raised by DOTr in its notice to terminate its contract will be proven to be bereft of factual and legal basis," the MRT-3 maintenance contractor said. — VDS/BM, GMA News

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