Winning bidder laments delay in P3.7-B MRT expansion | Inquirer Business

Winning bidder laments delay in P3.7-B MRT expansion

By: - Business News Editor / @daxinq
/ 12:25 AM February 18, 2014

The delay of the P3.7-billion capacity expansion program of the Metro Rail Transit’s Line 3 will adversely affect “hundreds of thousands” of commuters in the the metropolis, according to the firm that won the project.

In a statement, Dalian Locomotive and Rolling Stock Co. Ltd. CNR has sought a speedy and fair resolution of the court injunction obtained by MRT 3’s private operators—Metro Rail Transit Corp. (MRTC) and Metro Rail Transit Holdings.

“Attempts to scuttle and abort the [MRT expansion] project is improper,” the company statement said. “CNR Dalian participated in an open bidding where invitations to bid were carried widely by big dailies in the Philippines.”

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Two weeks ago, the Makati regional trial court ordered the expansion program temporarily stopped at the request of both firms, which feared that their ownership rights would be prejudiced by the unilateral decision of the Department of Transportation and Communications to buy additional light rail vehicles for the overworked commuter train system.

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DOTC awarded the train purchase contract to CNR Dalian after Transportation Secretary Joseph Emilio Abaya said a post-evaluation showed that the company was fit to do the project.

The purchase of more trains is intended to decongest the MRT system and cut passenger waiting time. The MRT 3 carries an average 600,000 passengers a day, which is almost double its original design capacity of 350,000.

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According to CNR Dalian, questions or claims of serious legal infirmities over DOTC’s right to acquire the light rail vehicles (LRVs) for its capacity expansion project should have been raised by opposing parties before the bidding was conducted.

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“After being awarded the contract to supply the LRVs, we were unnecessarily dragged into this legal entanglement and, lamentably, because of the delay, stand to be prejudiced because of something that is not within our control and of which we are not privy to,” the company said.

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CNR Dalian said it intends to protect its interests “to the fullest extent provided by law” although it did not elaborate.

The Chinese train manufacturer also decried “false claims” about the company’s supposedly questionable track record.

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“Dalian Locomotive was founded way back in 1899 and is a key large scale enterprise in China,” it said. “It is known for manufacturing not only diesel and electric locomotives, but also LRVs as well as metro cars and high-powered, medium-speed engines.” The company said it has exported diesel locomotives, electric locomotives and metro cars to more than 20 countries and is regarded as a reliable and trustworthy manufacturers of these types of rail vehicles. The company’s annual sales revenue for three consecutive years since 2010 exceeded 10 billion yuan.

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TAGS: Business, DoTC, Metro Rail Transit

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