The bidding for the P2.2-billion maintenance contract of the Metro Rail Transit (MRT) Line 3 was literally ditched by prospective bidders, a railway spokesman confirmed.
Hence, the tender for the upkeep deal was declared failed as five investors refused to submit bids.
“The bidding was a failure. We have to review the terms of reference again,” the train system’s spokesman Hernando T. Cabrera said.
The five prospective bidders were named as: Busan Transport Corp., Mosan-Inekon Phils. Ltd. Co., SMRT International Pte. Ltd., Miescorrail Inc., and D.M. Consunji Inc.
The bidders, he said, raised concerns on the deal’s provisions on “penalties and performance inductors” amid the current status of the 15-year-old train system.
“We are now preparing the bid documents…maybe we could publish the invitation to bid by next month,” Cabrera said. The multibillion-peso upkeep deal involves a three-year- concession period.
“Definitely within the year, we will award it,” the spokesman said.
He dismissed the prospect that the bidding was rigged as some industry players have alleged.
“That is an irresponsible, baseless statement. The terms of reference is designed specifically that the provision of spare parts necessary for efficient and safe operations is the obligation of the maintenance contractor,” Cabrera explained.
The current upkeep provider, APT Global Inc., will continue maintaining the line, along with a counterpart team deployed by the transport agency.
The transportation department is currently pursuing a P54-billion takeover of the line’s corporate owner, a move that MRT Holdings II Inc. (MRTH-II) is blocking due to lack of communication with the party led by the Sobrepeña family.
MRTH-II is the majority shareholder of MRT Corp. (MRTC), the owner of the assets of the 15-year- old line.
The buyout of the train system’s private concessionaire will put to a close the ongoing arbitration case in Singapore between the government and the concessionaire. This will also terminate the concession agreement, and end the government’s obligation to pay billions of pesos in equity rental payments to MRTC.
Once the buyout is completed in 2016, the transport agency may then bid out an operations and maintenance contract for the line, thereby tapping private sector efficiency and customer service orientation for operational needs, while retaining regulatory functions for passenger protection with government.
Since 2004, the train system has been operating at overcapacity. Currently, the line serves nearly 550,000 passengers per day, it even reached, at one point this year, the 650,000-daily passenger mark. It has a rated capacity of 350,000 daily passengers.