Please be informed that on 17 October 2017, the Department of Transportation (DOTr) served upon BURI a Notice to Terminate (Notice) its MRT-3 contract due to the following reasons:
1. Poor performance;
2. Failure to put in service and subsequently ensure the availability of contractually obligated number of trains, and more importantly, for failure to put in operation reliable and efficient trains;
3. Failure to implement a feasible procurement plan for spare parts, as it in fact failed to procure and store the required volume of spare parts, which affected its ability to effect immediate repairs on defective trains and other facilities of the MRT-3 system, and;
4. Failure to comply with the contractual requirements of a complete and up to date Computerized Maintenance Management System.
Further, please be informed that BURI was given 7 calendar days upon its receipt of the Notice to respond and submit a verified position paper stating why its contract should not be terminated. After which, the DOTr shall have 10 days, upon receipt of BURI's response, to decide whether or not it will issue an Order to terminate the entire contract.