DOTC: Contractor agrees to complete LRT 1 rehab
MANILA, Philippines - The winning contractor of the P269 million LRT-1 rehabilitation project has promised the Department of Transportation and Communications (DOTC) that they will complete the project.
DOTC spokesman Michael Arthur Sagcal said officials of the OMMC-KORAIL-Erin Marty-Jorgman joint venture committed to finishing the rail replacement project as scheduled.
"The joint venture assured DOTC that it will resolve its own issues in order to comply with its obligations. The joint venture also said that it’s still possible to meet the deadline," he said.
As for the joint venture's financing problems, Sagcal said they are now trying to obtain a bank loan.
On Wednesday, the DOTC said the joint venture was supposed to begin actual replacement works by May this year. However, the joint venture informed the DOTC that it would not be able to meet the project schedule since it could not obtain sufficient financing from lenders.
Last July 9, the DOTC told the joint venture that tehre was no impediment on the government's part, which prevents it from complying with the contract. The DOTC also emphasized the joint venture's failure to "satisfy its obligations are grounds for liquidated damages and blacklisting, in accordance with the Uniform Guidelines for Blacklisting."
The DOTC bidded out the project last November 2012, but the project was stalled due to procedural issues raised by the Commission on Audit. The issues have been resolved.
The project covers the replacement of about 23 kilometers of rail tracks and is supposed to to be completed within 20 months.