THE Department of Transportation (DOTr) handed Metro Rail Transit (MRT-3) service provider Busan Universal Rail Inc. (BURI) a notice to terminate its contract.
In a statement released by DOTr on Friday, BURI will be given seven days to send their position paper to air their side while DOTr will be given 10 days to decide if they will push through with the termination.
The notice was served to BURI on Tuesday.
According to the statement, BURI was given due notice due to its poor performance, failure to put the obligated number of efficient trains in service, failure to implement a feasible procurement plan for spare parts, and failure to set up a computerized maintenance management system.
As early as August, the DOTr has mulled cutting off its ties with BURI.
In its Oct. 18 statement, BURI said that terminating their services will not fix MRT’s problems, which they blamed on the design as the reason for the poor performance.
The company also called out DOTr for withholding P176 million worth of payments to BURI as a “lack of due process”. Likewise, BURI called DOTr’s accusations lacking factual and legal basis.
On Oct 10, the court dismissed the case in favor of BURI, ordering DOTr to comply with the court ruling to continue their case before the Philippine Dispute Resolution Center, Inc., the agency that handles disputes between public and private entities. — Anna Gabriela A. Mogato