Firms behind BURI barred from gov’t projects

By Patrizia Paola C. Marcelo
Reporter

THE DEPARTMENT of Transportation (DoTr) on Tuesday, Dec. 26, clarified that companies behind the joint venture Busan Universal Rail, Inc. (BURI) are disqualified from participating in the bidding of government projects due to the termination of the Metro Rail Transit 3 (MRT-3) maintenance contract.

This follows news reports saying that two of the companies forming BURI have qualified for three railway projects.

News reports quoted Puwersa ng Bayaning Atleta Party-list Representative Jericho Jonas B. Nograles, who said two of the companies forming BURI, Busan Transportation Corporation (Busan) and Edison Development and Construction (Edison), were qualified to bid for the rail replacement of the MRT; the restoration of four Light Rail Transit 2 (LRT-2) trains; and the LRT-2 Maintenance Contract.

Other BURI members are Tramat Mercantile Incorporated, TMI Corp. Incorporated and Castan Corporation.

“Under the Uniform Guidelines for Blacklisting of Contractors, after termination of a contract due to the fault of the contractor, the erring contractor shall be barred from participating in the bidding of all government projects,” DoTr said in a statement.

The DoTr last month terminated the MRT-3 maintenance contract with BURI, citing poor performance, and failure to implement a feasible procurement plan for spare parts. BURI questioned the termination and said they did what was stipulated in the contract, adding that the DoTr owed them fees amounting to P176 million.

The DoTr said that while Busan and Edison may have submitted the legal, technical, and financial documents under RA 9184 (Government Procurement Reform Act), the projects are currently in the post-qualification stage which is where qualification of interested companies will be determined.

“Busan and Edison’s submission of a bid for a project does not mean that they are qualified,” the DoTr said.

“All three projects are currently in Post-Qualification stage, and Busan and Edison’s disqualification from all government projects, pursuant to the Uniform Guidelines for Blacklisting of Contractors, will disqualify them from the (three) projects.”

A spokesperson for BURI said he will need to check information before releasing a statement.