DoTr terminates contract with MRT3 maintenance provider
The Department of Transportation has terrminated its multibillion peso contract with Busan Universal Rail Inc. for its inefficient maintenance of Metro Rail Transit line 3.
DOTr has given BURI seven days upon receipt of the notice to respond and explain why its contract should not be terminated.
“After which, the DOTr shall have 10 days, upon receipt of BURI’s response, to decide whether or not it will issue an order to terminate the entire contract,” the agency said.
The notice to terminate was served on Oct. 17.
Aside from poor performance, the other reasons cited by DOTr for terminating the contract include BURI’s failure to put in operation reliable and efficient trains;
The agency also failed to implement a feasible procurement plan for spare parts, which affected Busan’s ability to effect immediate repairs on defective trains and other facilities of the MRT-3 system.
BURI also failed to comply with the contractual requirements of a complete and up to date computerized maintenance management system.