No offer from Sumitomo to rehabilitate MRT, DOTr clarifies

MANILA, Philippines  — Metro Rail Transit-3 builder and former maintenance provider Sumitomo Corp. has no offer to the government to rehabilitate the overstretched rail system, the Department of Transportation said on Thursday.

DOTr last month said the government and Japan International Cooperation Agency, or JICA, signed the final details on the estimated project cost, scope of works and schedule of the MRT rehabilitation.

Based on the discussions, upgrading the MRT, which is estimated to cost ¥34.480 billion (P16.985 billion), will take 43 months.

In a statement, the DOTr clarified that Sumitomo did not submit any proposal to undertake the scope of the JICA-financed MRT-3 rehabilitation project.

The Transportation department issued the statement in response to “some erroneous claims.”

“Sumitomo Corp. has no offer to DOTr... contrary to some articles circulating online and on print media,” it said.

Reports of MRT train breakdowns have become as regular as the weather. In 2017, the shabby metro rail system, which serves thousands of passengers each day, reportedly suffered at least 500 disruptions.

Last year, the government terminated its contract with Busan Universal Rail Inc., the MRT-3 service provider, due to alleged poor performance. The DOTr at the time said the joint venture of Sumitomo and Mitsubishi Heavy Industries is being considered as it was involved with the train system in the past.

Meanwhile, Metro Pacific Investments Corp.’s offer to rehabilitate the MRT-3 is expected to move forward by the end of the year, Transport Secretary Arthur Tugade recently said.

MPIC unit Metro Pacific Light Rail Corp. was granted original proponent status by the DOTr in 2017 for the P12.5 billion proposal to rehabilitate, operate and maintain the MRT-3 for 30 years.