DOTr clarifies: BURI shareholders disqualified from bidding on three rail projects

The Department of Transportation (DOTr) on Monday clarified that Busan Universal Rail Inc. (BURI) and its joint venture members are not qualified to participate in the bidding for major rail projects of the agency.

DOTr issued the clarification fter Puwersa ng Bayaning Atleta (PBA) party-list Representative Jericho Nograles claimed that Busan Transportation Corporation and Edison Development & Construction were qualified to bid for DOTR's three projects.

"BURI and its joint venture members, which include Busan Transportation Corporation (Busan) and Edison Development and Construction (Edison), are disqualified from participating in the bidding of government projects, which is a consequence of the termination of BURI's contract for the maintenance of Metro Rail Transit (MRT-3) due to poor performance and breach of contractual obligations, which took effect last 6 November 2017," the DOTr said in a statement.

The DOTr said under the Uniform Guidelines for Blacklisting of Contractors, after termination of a contract, "the erring contractor shall be barred from participating in the bidding of all government projects: DOTr's Systematic Rail Replacement Project for MRT-3, LRTA's Maintenance Contract for LRT-2, and LRTA's Restoration of Four Train Sets Project also for LRT-2."

The agency said the two companies' submission of a bid for a project does not mean that they are already qualified in the bidding process.

"While Busan and Edison may have submitted the legal, technical, and financial documents required under R.A. 9184 (which is evaluated on a 'presence' or 'absence' criteria), Busan and Edison have not been declared qualified for the projects, which is done in the Post-Qualification stage of a procurement process," the DOTr said.

"All three projects are currently in Post-Qualification stage, and Busan and Edison's disqualification from all government projects, pursuant to the Uniform Guidelines for Blacklisting of Contractors, will disqualify them from the 3 projects," the DOTr added.

The DOTr terminated BURI’s contract as maintenance provider of the MRT3, citing “poor performance” and “failure” to comply with contractual requirements.  —Anna Felicia Bajo/KBK, GMA News