Negotiations between the Department of Transportation and Communications (DOTC) and prospective new MRT3 maintenance provider have reportedly reached another snag. This is the third time that such delay has taken place since the government opened the bidding for a maintenance contract for the country’s mass railway system.
According to a reliable source, the deadlock was caused by the failure of both parties, the MRT-3 DOTC and a Korean-Filipino joint venture (made up of Busan Transportation Corporation, Edison Development & Construction, Tramat Mercantile, Inc., TMICorp. Inc., and Castan Corporation) to reach a compromise during a meeting on January 4, Monday.
The demands by both sides were reportedly not met. As a result, the commuting public will have to wait a little longer before any improvements in train services may be expected until a contract with the new MRT-3 maintenance provider is finalized.
It was initially reported that the new MRT3 maintenance provider will begin to service its contract by January 5, 2016.
Apart from fulfilling the maintenance requirements for the MRT-3, the P3.81 billion ($80.67 million) contract with the Korean-Filipino joint venture covers the general overhaul of the train coaches and a complete upgrade of the signaling system. The contract with the Korean-Filipino joint venture will be in effect for three years, which will “allow the new MRT-3 maintenance provider to procure the necessary spare parts needed to increase the number of operating trains, especially during peak hours.”
Previously, the DOTC had declared a failure in bidding for MRT-3 maintenance provider – first in September 2014 and then in January 2015 – due to the non-participation of bidders.