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Business

LRTA blacklists 7 contractors

Elijah Felice Rosales - The Philippine Star

MANILA, Philippines — The Light Rail Transit Authority (LRTA), the operator of LRT-2, has blacklisted seven contractors for failing to deliver rehabilitation works on time, and plans to terminate other deals over delays flagged by state auditors.

Responding to a report issued by the Commission on Audit (COA), the LRTA said it revoked at least six projects handled by seven contractors for missing their respective deadlines.

New LRTA administrator Jeremy Regino has ordered a review of the rehabilitation projects upon assuming office in January, with a directive to cancel delayed contracts, blacklist their service providers, and file appropriate charges.

As a result of the review, the LRTA blacklisted the joint venture of Ma-An Construction Corp. and IFE Elevators Philippines Inc. The duo was supposed to supply, deliver and install 32 elevators and 13 escalators at LRT-2 stations, as well as replace 45 escalators at the revenue line.

The LRTA also repealed the contract awarded to Well-Built Specialty Contractors Inc. tasked to repair unbonded concrete plinths. It also recalled the project given to the joint venture of Kempal Construction and Supply Corp. and Comm Builders and Technology Philippines Corp. to install a train lift.

Likewise, Kempal and Suzhou Dafang Special Vehicle Co. Ltd., were blacklisted for the delayed delivery of rolling stock diagnostic tools.

The LRTA also removed NAR Power System Specialists Corp. from its list of qualified contractors after failing to complete the restoration of LRT-2 rectifier substations on time.

The state-run firm operating LRT-2 is assessing other contracts as well for possible termination on delays that disservice commuters using the rail line.

“The details of the blacklisting orders were posted on LRTA and PhilGEPS websites. There are still a few projects that are undergoing reviews and evaluation and they are in consideration for possible termination,” LRTA said.

The COA, in its audit of LRTA’s 2021 performance, said 13 of the 22 LRT-2 rehabilitation works, with a total cost of P984.56 million, were delayed by up to 1,065 days as of Dec. 31. State auditors added the delays deprive the commuting public of the intended benefits expected from the reforms.

The COA recommended that the LRTA slap liquidated damages on contractors who missed out on the deadlines of their projects.

The agency also said the LRTA should consider blacklisting the contractors involved and initiate the takeover of the terminated works.

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