BURI, JV Members Disqualified from Bidding for Any Government Projects

Wazzup Pilipinas!

This is to clarify various news articles published on 25 December 2017, regarding the supposed qualification of certain shareholders of the terminated MRT-3 maintenance service provider, Busan Universal Rail, Inc. (BURI), for three (3) other railway projects.

BURI and its joint venture members, which include Busan Transportation Corporation (Busan) and Edison Development and Construction (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.

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.

As noted in various news reports, Busan and Edison recently submitted bids for railway projects: DOTr's 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.

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.