PH awaits Sumitomo proposal for MRT 3 rehab, maintenance

The Philippine government has formally asked Japan’s Sumitomo Corp. to submit a proposal to rehabilitate and maintain the Metro Rail Transit Line 3 (MRT 3) in Metro Manila.

The move was linked to an P18-billion loan agreement with Japan. The funds would be used to bring back the MRT 3’s original Japanese maintenance providers, which also included Mitsubishi Heavy Industries.

The Japanese firms aim to restore the MRT 3 to its original operating condition in a bid to end complaints of unreliable services and long waiting times.

A Dec. 18 request for proposal from the Department of Budget and Management (DBM) Procurement Services showed that the Department of Transportation was inviting Sumitomo, through local office Sumitomo Corp. of the Philippines, to participate in the procurement and rehabilitation project of the MRT 3.

The DBM procurement service said in its letter that the deadline for submission would be Dec. 20.

It said the bidding would be conducted through direct contracting, which was allowed under the guidelines for procurement via Japanese overseas development assistance loans.

On Nov. 7, the Philippine and Japanese governments signed an “exchange of notes” for the contract’s loan agreement.

According to the website of the Ministry of Foreign Affairs of Japan, the loan provision will amount to a maximum of 38.1 billion yen, or some P18 billion.

The interest rate was set at 0.1 percent a year, payable in 28 years after a 12-year grace period.