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Gov't signs MRT maintenance deal with Busan group

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Jon Carlos Rodriguez, ABS-CBN News

MANILA (UPDATE) - The Philippine government has signed a three-year deal with a Korean-Filipino group for the maintenance of the Metro Rail Transit-Line 3 (MRT-3).Transportation Secretary Jun Abaya said a P3.8 billion contract has been signed with Busan Transportation Corporation, Edison Development &amp; Construction, Tramat Mercantile, Inc., TMICorp Inc., and Castan Corporation.“We are one step closer to having a safer and more reliable MRT-3 system with our new world-class rail maintenance service provider. With the operator of the Busan railway network in South Korea sharing their technical expertise, the riding public can expect an increase in the number of running trains and the efficiency of operations,” Abaya said in a statement on Friday.He also denied reports that the group backed out of the deal. Abaya said the delay in the agreement was caused by a language barrier, but the issue has since been resolved.Under the deal, the Busan joint venture will undertake the maintenance works of the rolling stock and signaling system.The contract also covers the general overhaul of 43 coaches and the total replacement of the signaling system which has caused numerous glitches in the MRT-3&#x27;s operations.Busan has been operating and maintaining the Busan Metro, four railway lines of the mass transit system in Busan, South Korea since 1999.On Friday morning, MRT operations were <a href="http://news.abs-cbn.com/video/nation/metro-manila/01/08/16/operasyon-ng-mrt-muling-nagkaaberya">suspended</a> due to a technical glitch. The same problem happened in the afternoon.<div>&#x27;Not Liberal Party fundraisers&#x27;</div>Abaya, who is also the secretary general of the ruling Liberal Party (LP), denied that the Filipino companies involved in the deal are &quot;fundraisers&quot; of LP.He said allegations that the companies are represented by a fundraiser of the ruling party is a &quot;100 percent lie.&quot; He said no one from the LP, including himself, know anyone from the companies.“No one has come up to me and said they know the four Filipino companies. I have no information that they know any of these guys,” he said.“Our conscience is clear. We abide to all rules and policies and procurement law, so saying this was secret and hidden from the public is really a lie,” Abaya said.The government attempted to bid out the maintenance contract twice in September 2014 and January 2015, but failed because the bidders did not show up.Abaya said this prompted officials to resort to an alternative mode of procurement.&quot;This is an alternative mode emergency negotiated, which was approved by the Government Procurement Policy Board. That approval allows a government agency to deal with one. But what did DOTC do? We invited four reputable foreign maintenance providers to come in to ensure despite the authority that there is a competitive bidding. The current provider insisted that they also be invited so there were five that participated,&quot; he said.

The Philippine government has signed a three-year deal with a Korean-Filipino group for the maintenance of the Metro Rail Transit-Line 3 (MRT-3).

Gov't signs MRT maintenance deal with Busan group

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Gov't signs MRT maintenance deal with Busan group

Jon Carlos Rodriguez,

ABS-CBN News

Published Jan 08, 2016 12:49 PM PHT

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Updated Jan 08, 2016 04:31 PM PHT

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