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MRT-3 simplified bidding avoided interruption of train services — Abaya

Posted on October 1, 2014

By Sammy F. Martin

MANILA, Oct. 1 (PNA) — Transportation and Communications Sec. Joseph Emilio Abaya on Wednesday said he was forced to arrange a simplified bidding on the maintenance service for the Metro Rail Transit (MRT 3) when he assumed in 2012 to avoid stoppage of the commuter train services.

At the Senate hearing of sub-committee on Transportation of Senate committee on Public Services, Abaya said no regular bidding occurred but there were three bidders who joined the “simplified bidding” which was eventually awarded to PH Trams-CB&T joint venture on October 20, 2012.

His reaction was based on the statement made by Roberto Sobrepena, chairman of the Fil-Estate, that Abaya allegedly only ”appointed” PH Trams to continue the maintenance contract. Sobrepena is also the chairman of of MRT Holdings.

“What happened instead was a ‘simplified bidding’ involving three companies with common terms of reference,” Abaya told the committee, referring to Sumitomo, Misako Rail and eventual contractor, PH Trams.

Abaya explained to the committee that the previous agreement between MRT Corporation (MRTC) and Sumitomo expired back in June 21, 2010 but had been extended and renewed every six months.

“I assumed office [secretary of DOTC] on Oct. 18 (2012), the Sumitomo contract was about to expire on the 19th or 20th. I had to make a decision because otherwise, I will stop the trains. At that point, we saw that we can justify an emergency situation,” he told the committee chaired by Senator Grace Poe.

“Under the law, there should be preservation of infrastructure of the government. It would be a bigger disaster if I took my time and go on regular bidding,” Abaya said. (PNA)

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