DOTr: BURI, BUSAN, Edison disqualified to bid for any government projects

The Department of Transportation (DOTr) has clarified that the two shareholders of Metro Rail Transit-3 (MRT-3) service provider Busan Universal Rail, Inc. (BURI) had been disqualified to bid for any government projects.

Under the rule, according to the DOTr, companies which contracts were terminated due to the contractor’s fault would warrant the disqualification of that company to bid for any projects of the government.

The DOTr issued this clarification following reports that circulated on Monday regarding the qualification of BURI’s shareholders – Busan Transportation Corporation (Busan) and Edison Development and Construction (Edison) – to bid for the government’s three railway projects.

“BURI and its joint venture members, which include [Busan] and [Edison], are DISQUALIFIED from participating in the bidding of government projects, which is a consequence of the termination of BURI’s contract for the maintenance of MRT-3 due to poor performance and breach of contractual obligations, which took effect last 6 November 2017,” DOTr said in a statement issued Monday evening.

“Under the Uniform Guidelines for Blacklisting of Contractors, after termination of a contract due to the fault of the contractor, the erring contractor shall be barred from participating in the bidding of all government projects,” it added.

The DOTr cited news reports indicating that Busan and Edison submitted bids for its Systematic Rail Replacement Project for MRT-3, LRTA’s Maintenance Contract for LRT-2, and LRTA’s Restoration of Four Train Sets Project also for LRT-2.

But the DOTr noted that, “Busan and Edison’s submission of a bid for a project does not mean that they are qualified.”

“While Busan and Edison may have submitted the legal, technical, and financial documents required under R.A. 9184 (which is evaluated on a ‘presence’ or ‘absence’ criteria), Busan and Edison have not been declared qualified for the projects, which is done in the Post-Qualification stage of a procurement process.”

“All 3 projects are currently in Post-Qualification stage, and Busan and Edison’s disqualification from all government projects, pursuant to the Uniform Guidelines for Blacklisting of Contractors, will disqualify them from the 3 projects,” it also said.