DOTr serves MRT3 maintenance provider notice to terminate contract; BURI has 7 days to respond

(Eagle News) — The Department of Transportation has asked Busan Universal Rail Inc. to explain why the agency should not terminate its contract to maintain the Metro Rail Transit 3.

The DOTr said in a statement that under the notice to terminate it sent BURI on Tuesday, the company was given seven days for this.

The agency said the notice was served on the basis of “poor performance; failure to put in service and subsequently ensure the availability of contractually obligated number of trains, and more importantly, for failure to put in operation reliable and efficient trains; and failure to implement a feasible procurement plan for spare parts…”

It also cited as grounds BURI’s supposed “failure to comply with the contractual requirements of a complete and up to date computerized maintenance management system.”

Upon receipt of BURI’s response, the DOTr has 10 days to decide whether or not it will completely terminate the contract.

In a separate statement, BURI said the grounds cited by the DOTr will be found “bereft of factual and legal basis.”

On Wednesday, it said that its performance was beyond government expectations.

“The immediate contract termination being pushed by DOTr’s Undersecretary for Rails, Cesar Chavez, and the withholding of payments due to the service provider not only lacks due process, but likewise have placed the MRT operations in peril,” the company added.