Gov’t awards interim maintenance contract for MRT

The government is set to begin a more rigorous procurement process to find a new firm that can ensure the Metro Rail Transit (MRT) train system’s smooth operations for years to come.

This comes following the Department of Transportation and Communications’ (DOTC) appointment of an interim maintenance provider to replace Japan’s Sumitomo Corp., whose contract with the government expired Friday.

In a statement, the DOTC said a six-month contract to maintain the MRT was awarded to PH Trams-CB&T JV, the same company maintaining the Light Rail Transit (LRT) line 1 from Baclaran to Roosevelt.

The DOTC said PH Trams-CB&R JV was appointed “while the procurement process of a regular maintenance provider” is being done simultaneously.

The contract will replace the maintenance agreement between privately-owned Metro Rail Transit Corp. (MRTC), which holds the concession for the Taft-to-North Avenue train line, and Sumitomo.

The previous maintenance contract between the two groups was extended twice, on the DOTC’s recommendation.

MRTC is controlled by Manuel V. Pangilinan’s Metro Pacific Investments Corp. (MPIC).

The DOTC said the decision to award the interim maintenance contract to PH Trams CB&T JV was made after DOTC’s Bids and Awards Committee (BAC) evaluated the proposal of MRT’s management to secure the services of an interim service provider.

The department also accused MRTC of having “abdicated its responsibility to get a maintenance provider for the MRT line upon the expiration of the previous maintenance contract.”

Under the original Build, Lease and Transfer (BLT) Agreement between MRTC and DOTC, it is the responsibility of the former to maintain the operations of MRT by securing the services of a maintenance provider.

The government’s role, through the DOTC, was to just pay the cost of the maintenance along with the Equity Rental Payments.

The MRTC has denied neglecting its obligations, saying that in 2010, the government took charge of finding the maintenance provider for the train line. It remains unclear whether the DOTC or the MRTC will find the new maintenance provider for the MRT.

During the “emergency bidding” conducted last week, two other firms submitted offers to maintain the MRT in the interim. These were previous incumbent Sumitomo and Miescor Railway.

The DOTC had to fast track the appointment of a new contractor or risk operating the MRT train line, which is used by 540,000 passengers a day, without the ability to repair equipment in case of malfunctions.