Idle for over a year: DOTr chief wants to abandon contractor for common station

DOTr Secretary Vince Dizon announces the termination of the Grand Central Station contract, citing 'unacceptable delays.

The Department of Transportation (DOTr) will terminate its agreement with the contractor tapped to build the Unified Grand Central Station due to “excessive delays” in completing its part of the project.

The transportation hub, which will link the LRT-1, MRT-3, and the under-construction MRT-7, has been “idle for over a year”.

In a statement on Thursday, March 6, Transportation Secretary Vince Dizon said the DOTr’s legal team is now in the process of finalizing the contract’s termination.

“The delay is unacceptable. This project should by now have been completed at napapakinabangan na ng mga tao (and should already be benefiting the people),” he said.

The common station project was divided into three areas: Area A, which covers platforms for LRT-1 and MRT-3; Area B, linking Areas A and C; and Area C, the platform for MRT-7.

The Area A project was awarded to BF Corp. and Foresight Development and Surveying Co. (BFC-FDSC) in 2019, with a contract price of P2.78 billion.

Notably, BF Corp. is a construction firm founded by the late Bayani Fernando, former head of the Department of Public Works and Highways (DPWH) and Metropolitan Manila Development Authority (MMDA).

With an initial completion date for the project in 2021, the project is still languishing four years later. 

To speed up the construction, the DOTr seeks options under the Government Procurement Act or the Public-Private Partnership (PPP) Code.

On the part of BFC-FDSC, Dizon said the consortium may be slapped with penalties and liquidated damages for “failing to honor the agreement”.  

The DOTr chief, however, acknowledged that the government may also be liable for late payments to the contractor.

“Ibabalanse po natin lahat ‘yan, ‘yung pagkukulang ng gobyerno, ‘yung pagkukulang ng contractor and at the end aabot tayo sa solusyon para sa lahat ng mga ‘yan,” he added.

(We will balance all of that, the shortcomings of the government, the shortcomings of the contractor, and at the end, we will reach a solution for all of those issues.)

Situated in North Edsa, Quezon City, the Unified Grand Central Station features a 13,700-square meter concourse, ensuring rail passengers of seamless transfers.

The station will also have an intermodal integrated system below, allowing commuters to depart by buses, jeepneys, or taxi conveniently.