A government-to-government (G2G) agreement to be signed before the year ends will allow Japan’s Sumitomo Corp. take care of the Metro Rail Transit-3’s (MRT-3) upkeep, the Transportation department said.
“High-level discussions with the government of Japan are ongoing to pave the way for DOTr’s direct engagement of Sumitomo Corporation and its technical partner Mitsubishi Heavy Industries, under a G2G Official Development Assistance platform,” the department said in a statement.
“The maintenance and rehabilitation contract is intended to have a term of three years, and will include the rehabilitation and restoration of the system to its original performance standards,” it added.
Sumitomo and Mitsubishi Heavy designed, built, and maintained the MRT-3 during its first 12 years of operation before Busan Universal Rail Inc. (BURI) took over.
The Transportation department has ended its maintenance contract with BURI, blaming the Korean-Filipino firm for the technical glitches plaguing the MRT-3.
The government is also considering an unsolicited private sector offer to operate and maintain the railway.
Original proponent status has already been awarded to Metro Pacific Investments Corporation (MPIC), whose proposal will soon be endorsed to the National Economic and Development Authority (NEDA) for further evaluation.