PNR cancels ₧921-M train supply contract

The Philippine National Railways (PNR) has canceled its P921-million train supply contract with CRRC Zhuzhou Locomotive Co. Ltd., after the Commission on Audit (COA) questioned the procurement processes implemented by the railway regulator.

PNR General Manager Junn B. Magno said with the cancellation of the contract with the Chinese manufacturer, the management will soon start the bidding process for the supply of new trains.

“The PNR board decided to cancel that contract. We are in cancellation proceedings and we will rebid the project. We’re in the pre-procurement process to comply with the provisions of the SEC and the GPBB,” he said, referring to the Securities and exchange Commission and the Government Procurement Policy Board.

To recall, the PNR management declared CRRC Zhuzhou was the winning bidder for the P921million contract for the supply of 3 three-car diesel multiple unit train sets. According to the audit commission, CRRC failed to submit post-qualification requirements, a move that should have resulted in its disqualification.

The new trains were poised to be utilized for the PNR’S long haul services.

Magno did not provide further details as to the schedule of the rebidding of the contract.

The contract for the procurement of the trains was signed in December 2019, two months after CRRC Zhuzhou Locomotive Co. Ltd. was declared the winning bidder for the delivery of the trains.

The contract for the procurement of the standard gauge Diesel Multiple Unit trains was signed by Magno and CRRC Locomotive Vice President Wang Qiaolin.