Wazzup Pilipinas!
The Department of Transportation and Communications (DOTC) and the Light Rail Transit Authority (LRTA) are assuring the public of the continuing safety of the LRT-1 System, as the DOTC seeks to solve an impasse in the implementation of the P 269-Million LRT-1 Rehabilitation (Rail Replacement) Project which was awarded in November of last year.
The DOTC will meet tomorrow (13 August 2013) with the winning contractor for the Project, OMMC-KORAIL-Erin Marty-Jorgman Joint Venture, to ensure that the latter fulfills its contractual obligations to government.
According to the transport agency, the Joint Venture was supposed to begin actual replacement works by May 2013. Instead, the DOTC received a letter from the Joint Venture, claiming that it would not be able to meet the project schedule since it could not obtain sufficient financing from lenders.
After an exchange of correspondences, the DOTC wrote the Joint Venture on 9 July 2013 to clarify that there was no impediment on the part of government preventing the Joint Venture from complying with the contract. The letter also stressed that the Joint Venture’s failure to satisfy its obligations are grounds for liquidated damages and blacklisting, in accordance with the Uniform Guidelines for Blacklisting.