The Taiwan Railways Administration (TRA) said on Thursday it was considering accepting the terms of a settlement proposed by the Public Construction Commission which would allow the contractor of the EMU800 train system to use a Japanese brake system.
In 2011, the railway agency contracted state-run Taiwan Rolling Stock Co (TRSC) to build 296 EMU800 commuter train carriages, with the first batch of 16 carriages being built in Japan and the remainder being built in Taiwan.
Prior to signing the contract, the agency had listed three different brake systems that could be used in the new trains, with a German brake system topping the list, followed by the Japanese one. The contractor chose the German brake system.
However, the TRA found during an on-site inspection in Japan that the contractor had used the Japanese brake system rather than the German one, without informing the agency. The TRA asked the company to address the problem within a designated period, or it would fail a final inspection of the train carriages.
The TRSC said it might have to declare bankruptcy if it fails to deliver on the NT$15.4 billion (US$515.6 million) contract.
The dispute between the TRA and the contractor eventually went to the Public Construction Commission for arbitration, which has proposed that the two parties reach a settlement under four conditions. First, the two must establish testing and inspection procedures for the first batch of 16 train carriages. Second, since using the Japanese brake system would save the contractor about NT$99.5 million in manufacturing costs, the TRA is entitled to deduct the stated amount from their original agreement. Third, the warranty period for the brake system is extended from three to four years; and fourth, the backup supplies of air compressors are to be increased by 50 percent.
In addition to those terms, TRSC agreed to deduct NT$5 million from the contracted sum as the arbitration had saved the contractor from a potentially expensive lawsuit.
Ho Hsien-lin (何獻霖), director of the TRA’s Rolling Stock Department, said that after consulting with the agency’s lawyers, it is considering accepting the terms of the settlement.
He said that the terms would be executed following a final confirmation from the commission.
The dispute had delayed the delivery of the first 16 train carriages, which were scheduled to arrive in September last year.
Ho said the TRA would ask the contractor to speed up the delivery of the first batch.
The EMU800 commuter trains are to be used to increase the number of train services to the east coast, following electrification of the railway line between Hualien and Taitung. The new trains are also to be deployed to carry commuters between Keelung and Hsinchu, the largest commuter corridor in northern Taiwan. Some of the old trains may be retired after the addition of the new trains, Ho said.
Despite the settlement, Ho said the railway agency would still follow the contract in terms of the penalties imposed on contractor if it fails to deliver the train carriages.
The contractor will face a fine of NT$770,000 per day for each day it misses the deadline stated in the contract, Ho said, adding that it would include the time spent settling the dispute.
The agency estimated that the first batch of trains should arrive in September and the new trains could be used to carry passengers by the Lunar New Year holiday next year.
Several Chinese Nationalist Party (KMT) officials including Chairman Eric Chu (朱立倫) are to be summoned for questioning and then transferred to prosecutors for holding an illegal assembly in Taipei last night, the Taipei Police said today. Chu and two others hosted an illegal assembly and are to be requested to explain their actions, the Taipei City Police Department's Zhongzheng (中正) First Precinct said, referring to a protest held after Huang Lu Chin-ju (黃呂錦茹), KMT Taipei's chapter director, and several other KMT staffers were questioned for alleged signature forgery in recall petitions against Democratic Progressive Party (DPP) legislators. Taipei prosecutors had filed
Taiwan would welcome the return of Honduras as a diplomatic ally if its next president decides to make such a move, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said yesterday. “Of course, we would welcome Honduras if they want to restore diplomatic ties with Taiwan after their elections,” Lin said at a meeting of the legislature’s Foreign Affairs and National Defense Committee, when asked to comment on statements made by two of the three Honduran presidential candidates during the presidential campaign in the Central American country. Taiwan is paying close attention to the region as a whole in the wake of a
President William Lai (賴清德) has appointed former vice president Chen Chien-jen (陳建仁) to attend the late Pope Francis’ funeral at the Vatican City on Saturday on his behalf, the Ministry of Foreign Affairs said today. The Holy See announced Francis’ funeral would take place on Saturday at 10am in St Peter’s Square. The ministry expressed condolences over Francis’ passing and said that Chen would represent Taiwan at the funeral and offer condolences in person. Taiwan and the Vatican have a long-standing and close diplomatic relationship, the ministry said. Both sides agreed to have Chen represent Taiwan at the funeral, given his Catholic identity and
NEW WORLD: Taiwan is pursuing innovative approaches to international relations through economics, trade and values-based diplomacy, the foreign minister said Taiwan would implement a “three-chain strategy” that promotes democratic values in response to US tariffs, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said. Taiwan would aim to create a “global democratic value chain,” seek to capitalize on its position within the first island chain and promote a “non-red supply chain,” Lin was quoted as saying in the ministry’s written report to the Legislative Yuan submitted ahead of the legislature’s Foreign Affairs and National Defense Committee meeting slated for today. The Ministry would also uphold a spirit of mutual beneficial collaboration, maintaining close communication and consultations with Washington to show that Taiwan-US cooperation