BURI barred from all gov’t projects

Busan Universal Rail Inc. (BURI), former maintenance contractor of Metro Rail Transit Line 3 (MRT-3), is disqualified from participating in the bidding for all government projects, the Department of Transportation (DOTr) insisted.

The DOTr denied the claim of Puwersa ng Bayaning Atleta (PBA) partylist Rep. Jericho Nograles when he said shareholders of BURI were allowed to bid for the rail projects of the department.

In a statement, the DOTr said BURI and its joint ventures Busan Transportation Corp. and Edison Development and Construction “are disqualified from participating in the bidding of government projects” as a consequence of the termination of its contract with them.

MRT-3, an attached agency of the DOTr, terminated its P3.8-billion contract with BURI last Nov. 6 due to alleged poor performance and breach of contractual obligations when it failed to procure spare parts needed for trains.

“Under the uniform guidelines for blacklisting of contractors, after termination of a contract due to the fault of the contractor, the erring contractor shall be barred from participating in the bidding of all government projects,” the DOTr said.

The DOTr’s statement came after Nograles questioned Transportation Secretary Arthur Tugade on why he allegedly allowed BURI and its shareholders to bid for the rail replacement of MRT3, restoration of four Light Rail Transit-2 (LRT-2) trains and LRT-2 maintenance.

“How can the DOTr even consider qualifying Busan and Edison as bidders for its projects shortly after getting entangled in a scandalous contract for MRT-3? Anyone in his right mind would not even touch these two companies with a 10-foot pole under the present circumstances,” Nograles said.

The DOTr, however, emphasized that Busan and Edison’s submission of a bid for a project “does not mean that they are qualified.”

The DOTr also pointed out that all three projects are now in the post-qualification stage.

“While Busan and Edison may have submitted the legal, technical and financial documents required under Republic Act 9184 (Government Procurement Reform that evaluates these on ‘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,” it added.

As far as the next service provider for the MRT-3 is concerned, the DOTr previously said there are ongoing talks with Japanese contractor Sumitomo to do the maintenance work and the rehabilitation of MRT-3 along with some representatives from Mitsubishi Heavy Industries.

Should it prosper, the DOTr said, the joint venture can start working with MRT-3 as early as April or May next year.

Spanning North Ave. station in Quezon City until Taft Ave. station in Pasay City, MRT-3 carries 500,000 passengers per day. –