Business World, 08 May 2013
ONLY FIVE out of nine groups were qualified to bid for a public-private partnership (PPP) project to install a fare collection system for Metro Manila’s three light rails, an official of the Transportation department said on Wednesday.
In a text message to reporters, Michael Arthur C. Sagcal, the agency’s head of communications, identified the five groups as:
• AF Consortium led by Ayala and Metro Pacific group
• Comworks, Inc. of Berjaya-led Philippine Gaming Management Corp. and Taiwan-based Kaoshung Rapid Transit Corp.
• E-Trans Solutions Joint Venture, Inc. of Tera Investments and EastWest Banking Corp.
• Megawide-Suyen-Eurolink Consortium of Megawide Construction Corp., Suyen Corp and Eurolink International Corp.
• SM Investments Corp. Consortium of BDO Capital Investments Corp., Advanced Card Systems, Ltd. and Pentacapital Investment Corp.
This would mean that the other four parties who submitted prequalification documents on April 12 will not be allowed to be for the project. They were:
• Lamco Paper Products Co., Inc. Consortium of New San Jose Builders, Inc. and Land Bank of the Philippines
• Mega Lucky United Consortium of Asia United Bank and Dignitas Equity
• MTD-PRLM Consortium of Malaysia’s MTD Capital Bhd and Lucio Co’s Puregold Realty LEasing and Management, Inc.
• San Miguel Transport Solutions Consortium led by San Miguel Corp.’s Optimal Infrastructure Corp.
Mr. Sagcal said the Transportation department will release a statement later in the day explaining the decision of the agency’s Bids and Awards Committee.
Under the government’s timetable, prequalified bidders will be asked to submit their technical and financial proposals on June 14.
Technical proposals will be opened on June 17 while financial proposals will be opened on July 5. Notice of award will be issued on July 30.
The P1.72-billion “Automated Fare Collection System” (AFCS) project involves a 10-year contract to “finance, design, construct, operate, and maintain a contactless automatic fare collection system” for Light Rail Transit Lines 1 and 2 and Metro Rail Transit Line 3.
The project, which is eyed to be operational by 2015, is envisioned to like Hong Kong’s Octopus card, which could also be used in retails stores, fast food outlets, tollways, among others. –Â Cliff Harvey C. Venzon
Press Release
PPP Center
May 2, 2013
The Metropolitan Waterworks and Sewerage System (MWSS) decided to discontinue the recent bidding process for the Angat Hydro Electric Power Plant (AHEPP) when only one bidder was able to satisfy the project’s pre-qualification requirements.
In a resolution by the Prequalification Bids and Awards Committee (PBAC) of AHEPP dated April 22, only one bidder met the technical requirements of the project. Another bidder was not able to comply with the technical component requirements specified in the ITPB, while the last bidder was late in its submission of the PQ documents. This prompted MWSS’ Bids and Awards Committee to discontinue the pre-qualification process and restart the bidding for the AHEPP project. Bidders submitted their pre-qualification documents last March 4.
MWSS has tentatively targeted the first week of June as the new date to issue its invitation to pre-qualify and bid for the project.
“While the BOT Law allows the bidding to proceed with only one bidder, the MWSS PBAC decided to discontinue the process and restart the bidding,” explains PPP Center Executive Director Cosette V. Canilao.
During the prequalification period, there were 13 bidders who expressed interest in the AHEPP project. These are Aguirre Abano Panfilo Pares Pineda and Agustin Law Office, DMCI Power Corp. EEI Corporation, First Gen Energy Philippines, Kaltimex Energy Philippines, K-Water Resources Corporation, Marubeni Corporation, Meralco Power Generation, SN Aboitiz Power, Sta. Clara Power, Sunway Waters and Electric Co., Trans-Asia Oil and Energy Development Corp. and FAM Energy Consortium.
The rehabilitation, operation and maintenance of the MWSS-owned auxiliary turbines 4 and 5 will cost the private proponent $27.5 million or 1.15 Billion pesos. Located within the MWSS compound in San Lorenzo in Norzagaray, Bulacan, the project will include the renovation and modernization of the turbines 4 and 5, the construct of a separate control room; as well a new switchyard and transformer area. The winning bidder will also undertake the operation and maintenance of the modernized Auxilliary Turbines #4 and #5.
Under the rehabilitate-operate and maintain scheme of the Build-Operate and Transfer Law, the cooperation period between the MWSS and the winning bidder is for 20 years including the construction period.
The AHEPP is one of the projects that received funding from Project Development and Monitoring Fund managed by the PPP Center for the development of its feasibility study.
Philippine Star, 29 April 2013
MANILA, Philippines – The Department of Transportation and Communications (DOTC) is confident that majority of the infrastructure projects under the public-private partnership (PPP) program would be completed within the term of President Aquino.
Transportation Secretary Joseph Emilio Abaya said the government is now at the “catch-up” point but is optimistic that the DOTC would be able to complete major infrastructure projects with a combined value of about P82 billion before the end of the President’s term in 2016.
“The PPP program of this administration, in particular, took some time to get rolling. PPP is something that’s still new for all of us, and as with all things unfamiliar, we approached it with the necessary prudence,” Abaya stressed.
For this year alone, the DOTC chief said the agency is set to award at least three PPP contracts including the P30.9 billion extension of the Light Rail Transit line 1 (LRT1) all the way to
Niog in Bacoor, Cavite from Baclaran in Pasay City, the first phase of the P17.5 billion Mactan-Cebu international airport expansion project worth P8.9 billion, and the P1.72 billion automated fare collection system (AFCS).
“That’s just for this year. In the next few years, we will be commencing bidding for our other projects that are still either in the study or engineering design phase as of the moment,” he added.
These projects include the P9.8 billion extension of the LRT2 all the way to Masinag in Antipolo, the expansion of the Davao-Sasa port, the central spine roll-on roll-off (RORO) project as well as the operation and maintenance of the airports in Puerto Princesa, Bohol-Panglao, and Laguindingan.
“Not all, but what I’ve mentioned yes. Majority will be,” he replied when asked if the projects would be completed within the term of President Aquino.
Projects to be completed include the AFCS project that would provide a single-ticket system for the Metro Rail Transit (MRT) and LRT, the connector road being built by diversified conglomerate San Miguel Corp. and infrastructure conglomerate Metro Pacific Investments Corp. to connect the North and South Luzon expressways, and the proposed extension of the LRT1 to Cavite.
Abaya said the DOTC would continue to make it a priority to draw as much competition as possible as having multiple bidders for a project is necessary to get the best deal possible for the government.
He pointed out that the Aquino administration has learned the lessons from the previous administrations wherein unsolicited proposals were accepted instead of bidding out projects to prospective investors.
“Beyond having clean and honest biddings, we are also concerned with making sure that our project contracts are fair, clear, and reliable. The Philippines has an unfortunate history of either reneging on its obligations or falling on the losing end of a bad deal,” Abaya said.
He cited that a total of nine groups submitted qualification documents for the AFCS project while seven groups beat the deadline for the submission of qualification documents for the Mactan-Cebu international airport expansion project.
Rappler, 26 April 2013
CAVITE BOUND. The Light Rail Transit (LRT) Line 1 extension to Cavite is one of three project that are set to be awarded in 2013. Photo courtesy of the PPP Center
MANILA, Philippines – The Department of Transportation and Communication (DOTC) is confident that it will be able to award at least 3 Public Private Partnership (PPP) projects this year and commence bidding for 6 others in the next few years.
In his speech at the Makati Business Club (MBC) General Membership meeting on Thursday, April 26, DOTC Secretary Joseph Emilio Abaya said the 3 PPP projects that will be awarded in 2013 are:
The 6 projects that will commence bidding are:
“The PPP programs of this administration, in particular, took some time to get rolling. PPP is something that’s still new for all of us, and as with all things unfamiliar, we approached it with the necessary prudence. But we are now at the catch-up point,” Abaya said.
“Being cautious takes time, and that’s been the foremost criticism thrown at us. But this is the kind of compromise we’re willing to make if it means that we can gain more benefits in the long-term and avoid future headaches by ensuring that our infrastructure projects are vigorously planned and provided by the most competent partners who share the same impetus to serve the Filipino people well,” he explained.
BETTER SAFE THAN SORRY. Transport Secretary Jun Abaya explains the delays in the roll out of big-ticket infrastructure projects. Photo from Malacañang
More bidders
Abaya said it was important for the government to impose stricter rules to ensure transparency and a level playing field in the bidding process. This makes all PPP projects above board and prevent them from becoming ‘white elephants’.
The DOTC Chief said that in the pre-qualification bidding of the AFCS, the stricter DOTC rules disqualified a firm just because it was15 minutes late in submitting its documents.
By imposing these rules, Abaya said the government was able to restore the private sector’s trust as evidenced by the significant increases in the number of firms wanting to bid for the PPPs.
“This is not just a matter of principle, of doing the right thing, but also a matter of practicality. Taxpayers were essentially losing millions in previous projects because we did not generate enough competition for our projects, forcing us to settle for whichever won among two or three bids,” Abaya said. -Rappler.com
ABS-CBN News, 25 April 2013
MANILA — The Department of Transportation and Communications will be meeting with the pre-qualified bidders for the P60-billion Light Rail Transit (LRT) Line 1 Cavite Extension project.
“The conferences will give bidders the chance to bring up their questions and comments on the draft Concession Agreement which will eventually be awarded to the winning bidder,” the DOTC said in a statement.
“[T]his will enable the bidders to better prepare their respective bid proposals, which are due for submission on June 17,” the department added.
The agency said its Special Bids and Awards Committee and the Light Rail Transit Authority has scheduled the conferences from April 25 to 30. The government offices will be meeting with the consortium of DMCI Holdings Inc., the Light Rail Manila consortium, the consortium of SMC Infra Resources Inc., and the MTD Samsung consortium.
Last year, thirty-three companies bought invitation documents for said project. However, only six groups submitted their qualification documents and only four were declared qualified.
The LRT-1 Cavite Extension project will add additional stations to the existing line, allowing it to reach passengers in Niyog in Bacoor, Cavite. The government is also mulling to further extend this to Dasmariñas City and Imus.
Malaya, 23 April 2013
Prospective bidders for a number of Public Private Partnership (PPP) projects—expressway, link or connector or toll roads—often ask about the delivery of right-of way or the legal access to the road that will be built.
“This is the primary concern of prospective bidders,” says Cosette Canilao, executive director of the government’s PPP Center, which mostly has PPP infrastructure projects such as road, rails and airports.
If there are existing buildings—residential or commercial—or farmlands that would be affected by the construction of roads and difficulties arise, the implementing government agency (usually the Department of Public Works and Highways) will need to talk to affected owners and explain to them the project
Such cases would eventually result in payment for the properties and costs of relocation.
Canilao said in an interview that another concern of a typical prospective bidder is clear interoperability policy where a winning bidder can freely do activities related to the project’s smooth implementation without restricted access or other regulations.
The PPP Center has so far awarded three projects—the $46.6 Daang Hari-SLEX  Road Project which is being built by Ayala Corporation; the $389 million Phase 1 of the School Infrastructure Project which was given to a consortium; and just recently, the $377.6 million Ninoy Aquino International Airport (NAIA) Expressway Project which was awarded to a subsidiary of San Miguel Corp.
The Daang Hari-SLEX Project involves the construction of a new 4-kilometer 4-lane toll road, from the junction of Daang Reyna and Daang Hari in Las Piñas/Bacoor, Cavite, to SLEX through the Susana Heights Interchange in Muntinlupa, traversing the New Bilibid Prison Reservation.
The link-road will use the Susana Heights Interchange as exit and entry from the north and south of SLEX, and will include the construction of a new bridge and widening of the existing bridge crossing SLEX. It also includes the expansion of the Susana Heights toll plaza.
It is a Build-Transfer-and-Operate (BTO) arrangement with a concession period of 30 years. As of March 25, 2013, the project was 29.6 percent complete.
Implemented by the Department of Education (DepEd), the PPP for School Infrastructure aims to expand the supply of classrooms in all public school system and cut the current shortage of 66,800 classroom units nationwide.
The project involves the design, financing and construction of about 9,300 one-storey and two-storey classrooms, including furniture and fixtures, in selected sites in Region I (Cagayan Valley), III (Central Luzon) and IV-A (Southern Tagalog).
It is under Build-Lease-and-Transfer (BLT) contract with a cooperation period of 10 years, inclusive of construction.
As of March 15, 2013, a total of 834 sub-projects have been issued notices to proceed while 116 sub-projects started construction.
The NAIA Expressway Project aims to ease existing and future traffic problems going to and from the MIA/NAIA Complex. It will provide a link between the SLEX/Skyway, and the Manila-Cavite Toll Expressway (CAVITEX)/Roxas Boulevard/Macapagal Boulevard, and the upcoming PAGCOR City.
The project will construct a 4-lane, 7.75 km elevated expressway and 2.22 km at-grade feeder road that will provide access to NAIA Terminals I, II and III, and link the Skyway and the Manila-Cavite Toll Expressway.
It starts at the existing Skyway, then follows the existing road alignments over Sales Avenue, Andrews Avenue, Domestic Road and NAIA Road, and has entry/exit ramps at Roxas Boulevard, Macapagal Boulevard, and PAGCOR City.
As Build-Transfer-Operate (BTO) project, the project a concession period of 30 years, including construction.
Inquirer, 20 April 2013
MANILA, Philippines—South Korean businessmen are keen to invest more in the Philippines in light of the strong economy, the Aquino administration’s anti-corruption campaign and its public-private sector partnership (PPP) program, a South Korean diplomat in Manila said recently.
Min Kyong-ho, minister and consul general of the South Korean Embassy in Manila, said in a recent interview that more Korean investors were taking an interest in the Philippines in light of the country’s improving economy, most recently rated to be of investment grade by international debt watcher Fitch for the first time.
“We think that recently, the leadership has been very successful in building the economy, especially through PPP and infrastructure. Also, the fight against corruption is very effective,” Min told the Philippine Daily Inquirer.
“I think it has opened for great potential for closer and deeper cooperation, especially in the economic field, because Korean companies are very much interested in investing in the Philippines, because there are many good elements, favorable elements for investing,” said Min.
“The human resources are fantastic. I think also there are many projects that can be done here, especially in infrastructure. There is still a need to build many bridges, roads, railroads, the telecommunications systems,” Min added.
There remain concerns, however, including high electricity costs and limits to foreign ownership of businesses here.
“Still, we have some expectations especially about the investment climate and the legal environment. If you have a better environment, then it will really stimulate foreign investment,” said Min.
There are some 1,000 Korean firms in the Philippines, said Min, the biggest being Hanjin Shipping with a $2 billion investment in the country.
Total trade between South Korea and the Philippines was estimated at $11.5 billion in 2012, an increase from the 2011 total of $10 billion.
The Philippines posted an economic growth of 6.6. percent in 2012, among strongest performing in Asia.
