South Korea, German-Filipino firms decline DOTC offer

South Korea, German-Filipino firms decline DOTC offer

The Metro Rail Transit (MRT) is left uncertain of its maintenance after the South Korean firm, Busan Transport Corp, backed out of a new deal while the previous contractor, Schunk Bahn-und Industreitechnik-Comm Buolders and Technology Philippines (SBI-CBT JV), declined a one-month service extension.

According to the South Korean firm, they were awarded the contract without public bidding before Christmas day. It is said that they informed the Department of Transportation and Communications (DOTC) that they only wanted to serve as technical adviser in the three-year maintenance contract.

Apparently, Busan wanted out because they were worried with lawsuits that the company may face after an existing “emergency” is claimed by DOTC.

DOTC is said to reject the cancellation of the South Korean firm since it has the expertise for the service.

The Busan deal was supposed to replace the previous six-month maintenance contract with the Germ-Filipino firm.

Meanwhile, SBI-CBT JV declined the month long extension due to DOTC’s failure to pay in full. According to Roehl Bacar, representative of the previous contractor, the firm was only paid P28 of the agreed amount of P131 million for the six-month deal.

The SBI-CBT JV has filed charges of neglect and misconduct to several MRT 3 executives before the Office of the Ombudsman for the balance of P102-million. They are also planning on pressing charges against DOTC and other MRT officials.