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CCI Paris and France-Malaysia Delegation to the Philippines Forum


21 November 2014


Chamber of Commerce and Industry (CCI) Paris and CCI France-Malaysia Delegation to the Philippines Forum


DOTC eyeing another MRT-LRT common station

Rappler, 20 November 2014
By Mick Basa
The government is in talks with a unit of San Miguel Corporation for the construction of an additional common station, this time at SM North EDSA
MANILA, Philippines – The government is in talks with a unit of San Miguel Corporation for the construction of an additional common station linking the northernmost stops of Metro Manila’s railway systems – the Light Rail Transit (LRT) and the Metro Rail Transit.

Aside from the contested common station planned at the TriNoma mall in Quezon City, another one is being considered near its neighboring mall, SM North Edsa, said Transportation Undersecretary Jose Perpetuo Lotilla.

“The common station is required to be built in North EDSA because MRT7’s end point is there,” Lotilla told Rappler in an interview Thursday, November 20.

The proposed MRT7 system of San Miguel Corporation stretches from EDSA to Caloocan City, and will pass through Lagro and Fairview, Novaliches, Batasan, Diliman, Philcoa.

The government has been in hot water for unilaterally scrapping its agreement with SM North EDSA to build the common station there and transferring it to TriNoma.

SM Prime Holdings Incorporated (SMPHI) has been fighting tooth and nail to get the planned common station back at its mall. It also wants the Light Rail Transit Authority (LRTA) to honor an agreement they signed in 2009 for SM to have naming rights to the proposed common station worth P200 million.

A Pasay City court junked SMPHI’s application for a temporary restraining order (TRO) and preliminary injunction.

The Department of Transportation and Communications (DOTC) said SMPHI’s memorandum of agreement (MOA) with LRTA had expired in 2011, and the National Economic and Development Authority had approved the construction of the common station at TriNoma.

SMPHI elevated the case to the Supreme Court, which issued last July 30 a temporary restraining order (TRO) on the planned transfer of the common station to TriNoma. It asked the Department of Transportation (DOTC) and the LRTA to comment on SM’s petition and not to file a motion to dismiss it.

On September 12, the DOTC asked Universal LRT Corporation (ULC BVI) Limited – a San Miguel subsidiary and MRT7 concessionaire – to stand “neutral” over the actual location of the common station.

Five days later, on September 17, ULC BVI insisted “the common station should be in front of SM.”

Lotilla explained that DOTC’s intention in writing San Miguel “is to explore another approach,” which is to design for another common station.

“The discussion is still open,” he said. –

SMC to bid out MRT 7 contract

Manila Standard Today, 19 November 2014
By Jenniffer B. Austria
Conglomerate San Miguel Corp. said Wednesday it is set to bid out the contract to build the $1.2-billion Mass Railway Transit Line 7, two years after it signed a deal with the consortium of D.M. Consunji Inc. and Marubeni Corp. of Japan.

San Miguel president and chief operating officer Ramon Ang said in an interview the company was now finalizing the financing of the project as well as the bidding for the supply contract of the trains.

“Since this is a public infrastructure project, we have to conduct a public bidding to make the process transparent,” Ang said.

DMCI said in a disclosure to the stock exchange on May 15, 2012 the DMCI-Marubeni consortium bagged the construction contract for the 22-kilometer railway project of Universal LRT Corp., a company controlled by San Miguel.

The consortium said the engineering, procurement, construction contract covered the MRT 7 system and the intermodal transportation terminal in Bulacan.

San Miguel acquired a 51-percent stake in Universal LRT in 2010. Universal LRT holds the concession for MRT-7.

Ang, however, said Universal LRT had to update the costing of the project as prices of construction materials had changed substantially since 2012. Universal LRT bagged government approval to start construction of the MRT 7 in September this year.

The project involves the construction of a 22-kilometer train line with 14 train stations from San Jose del Monte City in Bulacan to the corner of North Avenue and Epifanio de los Santos Avenue in Quezon City.

It also involves a 22-kilometer six-lane road from the MRTS depot in Bulacan. The MRT 7 project will be linked with the MRT Line 3 and Light Rail Transit Line 1 via a common station on North Avenue.

Ang said San Miguel would not wait for the issue on the common station to be resolved by the Supreme Court before proceeding with the MRT 7 project. San Miguel reportedly offered to build the common station that would link MRT Lines 3 and 7.

The construction of the common station became controversial after SM Prime Holdings obtained temporary restraining order from the Supreme Court stopping the government from building the common station near the Ayala Land-owned TriNoma Shopping Mall.

First ASEAN PPP Networking Forum set in Manila

21 November 2014
The Philippines will be hosting the first ASEAN Public-Private Partnership (PPP) Networking Forum in Manila this December 2014.

The forum will bring together members of the ASEAN Connectivity Coordinating Committee (ACCC), national coordinators, PPP focal points and officials responsible for infrastructure projects from the ten ASEAN Member States (AMS).

Organized by the Permanent Mission of the Philippines to ASEAN led by Her Excellency Elizabeth P. Buensuceso, with support from ACCC, Department of Foreign Affairs (DFA) ASEAN Economic Community (AEC) Division and the PPP Center of the Philippines. The forum, sponsored by Economic Research Institute for ASEAN and East Asia (ERIA) and ASEAN Regional Integration Support from the EU (EU ARISE), will be held at the Sofitel Philippine Plaza Hotel from December 16-17.

The forum aims to be a venue for sharing experiences on PPP of every member countries. It will tackle challenges, opportunities, and innovative PPP practices as well as insights from the private sector.

It will also facilitate dialogue about a proposal for an ASEAN Guidelines/Principles on PPP that expects to harmonize policy, institutional, and regulatory frameworks of AMS with the view to further enhance the economic integration and global competitiveness of the region.

This also aims to establish a network of PPP units or similar institutions that will be a venue for regular interaction of member countries.

Representatives from the private sector, financing institutions, and development partners will also be in attendance which is an opportunity for ASEAN countries to pitch in their pipeline of projects and development support requirements.

Earlier this month, President Benigno Aquino III made the announcement of the country’s hosting of the said forum to fellow ASEAN leaders and top business officials during the ASEAN Business Advisory Council (ABAC) dialogue, which was part of the recently-concluded 25th ASEAN Summit in Nay Pyi Taw, Myanmar.

“The forum will take stock of the outcomes of recent PPP initiatives in ASEAN and will serve as an avenue for exploring the future direction of PPP efforts in the ASEAN region,” President Aquino said during his intervention at the ABAC dialogue.

“In this way, with both the public and private sectors working together, we will sooner realize our vision of an inclusive, interconnected, and progressive region, one that serves as a wellspring of opportunity for all our peoples,” he added.

5 bidders qualify for P24.4-B MWSS water supply project

Manila Bulletin, 20 November 2014
By Kris Bayos
Only five out of the 15 interested bidders have qualified to join the auction of the P24.4-billion Bulacan Bulk Water Supply (BBWS) project of the Metropolitan Waterworks and Sewerage System (MWSS).

According to the Public-Private Partnership (PPP) Center, Team Polaris-Manila Water, First Philippine Holdings Corp. and Abeima Consortium, Filinvest Agua Consortium, San Miguel Corp.-K Water Consortium, and Prime Alloy Water Consortium have hurdled the legal, technical and financial requirements under the first stage of the BBWS bidding process.

Bid documents for the BBWS project will be issued only to the pre-qualified bidders at a later date, according to the MWSS Pre-qualifications, Bids, Awards Committee. Bidders will also be given sufficient time to prepare their technical and financial proposals.

Team Polaris-Manila Water Consortium represents Manila Water, M.E. Sicat Construction and J.H. Patawaran Construction; First Philippine Holdings Corp. and Abeima Consortium consists of the First Philippines Holdings Corp. and Spain’s’ Abeinsa Infraestructuras Medio Ambiente, S.A.; Filinvest Agua Consortium represent Filinvest Development Corp. and another Spanish group, Tecnicas De Desalinizacion De Aguas, S.A. (Spain); San Miguel Corp.-K Water Consortium represents San Miguel Corp. and Korea Water Resources Corp.; while Prime Alloy Water Consortium is a partnership between Prime Water Infrastructure Corp., Malaysian-based MTD Capital BHD, and UK’s Biwater International Ltd.

The BBWS project covers the financing, detailed design, construction, and maintenance of conveyance facility, treatment facilities as well as the water source that serve 24 municipalities in Bulacan.

The winning contractor of the PPP project will have to operate and maintain the facility for a 32-year concession period, which already includes the construction of the BBWS facility.

Originally, the BBWS project has attracted 15 prospective bidders including Manila Water (Philippines), Marubeni (Japan) Filinvest (Philippines), First Balfour (Philippines), Abengoa (Spain), Megawide (Philippines), San Miguel (Philippines), Maynilad Water Services, Inc.(Philippines), New San Jose Builders, Inc. (Philippines), Sojitz Corp.(Japan), Korea Water Resources Corp.(Korea), Prime Water Infrastructure Corp (Philippines), Datem Water, Inc. (Philippines), Acciona Agua (Spain) and Aboitiz Equity Ventures (Philippines).

Five groups prequalify to bid for P24.4-B Bulacan water supply PPP

GMA News, 20 November 2014
By Kathryn Mae P. Tubadeza

Five groups have prequalified to bid for the first water project under the public-private partnership (PPP) program of the government, the PPP Center revealed on Thursday.

According to the PPP Center, five bidders passed the legal, technical and financial requirements and prequalified to bid for the P24.4 billion Bulacan Bulk Water Supply Project.

Prequalified bidders will be asked to submit their bid proposals in March next year, Metropolitan Waterworks and Sewerage System administrator Gerardo Esquivel told GMA News Online.

“Indicative is March 2015,” he said.

The prequalified bidders will be issued bid documents and given time to prepare the technical and financial proposals are:

  • Team Polaris-Manila Water, a consortium of Manila Water Company Inc., M.E. Sicat Construction Inc., and J.H. Patawaran Construction
  • First Philippine Holdings Corp. and Spain’s Abeinsa Infraestructuras Medio Ambiente S.A. consortium
  • Filinvest Agua, a consortium of Filinvest Development Corp. and Spain’s Técnicas de Desalinización de Aguas S.A.
  • San Miguel Holdings Corp. and Korean Water Resources Corp. consortium
  • Prime Alloy Water, a consortium of Prime Water Infrastructure Corp., Malaysia’s MTD Capital BHD, and United Kingdom’s Biwater International Ltd.

The PPP Center noted the project will supply 24 municipalities in Bulacan with treated raw water.

It involves the financing, detailed design and construction, and maintenance of conveyance facilities, treatment facilities and water source. – VS, GMA News

Bidding terms for Davao Sasa Wharf PPP out before year ends

InterAksyon, 20 November 2014
By Darwin G. Amojelar

MANILA – The government’s first public-private partnership (PPP) seaport project will be rolled out before the end of the year.

“We can publish it before the end of the year. It’s in our interest to publish it soonest,” Transport Secretary Joseph Emilio Abaya said, referring to the Davao Sasa Port Modernization Project.

Approved by National Economic and Development Authority (NEDA) Board last month, the P18.99-billion project involves the development of the existing port into a modern, international-standard container terminal.

According to the PPP Center, the private partner will finance the construction and modernization of the existing Davao Sasa port, including the new apron, linear quay, expansion of the back-up area, container yards, warehouses, and the installation of new equipment like ship-to-shore cranes and rubber-tyred gantry over the pre-agreed concession period.

The winning bidder will also be responsible for operating and maintaining the port for 35-40 years.

The Davao Sasa Wharf is the country’s major port for bananas, one of the Philippines’ biggest exports products. It has a capacity of 700,000 twenty-foot equivalent units (TEUs), but the Philippine Ports Authority (PPA) earlier forecast volumes to increase to 1.2 million TEUs in the next five years.

The Davao Integrated Port Stevedoring Service Corp, a unit of International Container Terminal Services Inc (ICTSI), is the lone cargo handler at the Davao Port.

Besides the Sasa Wharf, the government is bidding out the following projects under the PPP:

  • P2.5 billion Integrated Transport System (ITS)-Southwest Terminal Project;
  • P24.4 billion Bulacan Bulk Water Supply Project;
  • P4 billion Integrated Transport (ITS) -South Terminal Project;
  • P122.8 billion Laguna Lakeshore Expressway-Dike Project;
  • P18.72 billion New Centennial Water Source – Kaliwa Dam Project; and
  • LRT2 Operation and Maintenance Project.

Since launching its PPP program in 2011, the Aquino administration has awarded eight projects to private partners.

ASEAN PPP Networking Forum

20 November 2014

ASEAN PPP Networking Forum, Manila Philippines, 16-17 December 2014

Bilibid moving to Ecija; old site soon a commercial area

Philippine Daily Inquirer, 19 November 2014
By Anselmo Roque, Kristine Felisse Mangunay, Inquirer Central Luzon
MANILA, Philippines—After nearly 75 years in Muntinlupa City, the national penitentiary is headed for the countryside.

The formation of a technical working group to work out the details for the transfer of the New Bilibid Prison (NBP) to Nueva Ecija province is underway, according to Bureau of Corrections (BuCor) Director Franklin Jesus Bucayu.

“I can’t estimate when [the procurement process] will be finished but [hopefully, it will be completed] within 2015,” Bucayu told the Inquirer on Tuesday.

The future site of the national penitentiary is a 500-hectare property in Laur town, he added. Construction would take around three years with a budget of P50.18 billion allocated for the project.

Once the transfer was complete, Bucayu said the government was planning to convert the NBP compound into a mixed-use commercial area although there was nothing definite yet.

The new NBP would house 25,000 to 26,000 inmates and conform to the national requirements of a penal facility. The national penitentiary has currently over 20,000 prisoners.

According to Department of Justice (DOJ) and BuCor officials, the 551-hectare NBP compound in Muntinlupa City which opened in 1940 was overcrowded.

Not just for NBP inmates

Bucayu said that aside from accommodating NBP prisoners, the facility may also take in detainees from other heavily congested prisons, adding that the average congestion rate of all BuCor penal facilities was 145 percent.

Earlier, he announced the approval of the transfer by the National Economic and Development Authority (Neda) when members of the House committee on justice conducted an inspection of the NBP.

According to Bucayu, the project would be undertaken through a public-private partnership scheme as a joint project of the DOJ and BuCor.

In 2006, then President Gloria Macapagal-Arroyo issued Executive Order No. 568 authorizing the transfer of the NBP to a 272-hectare reservation in Barangay Cuyambay in Tanay, Rizal, but this was opposed by town officials.

In May 2012, the Aquino government began studying the option of relocating the NBP and the Correctional Institution for Women in Mandaluyong City to Nueva Ecija.

Nueva Ecija Gov. Aurelio Umali said it was about time the national government addressed the problem of the state of prison facilities nationwide.

In a public hearing on the transfer held in Nueva Ecija in July, Justice Undersecretary Francisco Baraan, the DOJ’s supervising official for BuCor and the NBP, said the new facility would follow international standards.

Place of ‘cruel punishment’

“I saw correctional facilities in Japan, Canada and Australia, and our facilities pale in comparison. The NBP in Muntinlupa City does not look like a prison facility at all and constitutes cruel and degrading punishment [for] prisoners,” he told those present.

At the public hearing held in July, a project timetable showed that the bidding would be done in February next year with the contract signing set for April. Construction would start in October 2015 and was expected to be finished in three years.

Aside from the NBP inmates, some 2,000 prisoners from the Correctional Institution for Women in Mandaluyong City would also be included in the transfer to the new facility, officials said.

Five groups qualify to bid for 1st water PPP

Business World, 19 November 2014
By Claire-Ann M.C. Feliciano
FIVE INVESTOR groups have prequalified to participate in the auction for the P24.4-billion Bulacan Bulk Water Supply Project (BBWSP), the first water public-private partnership (PPP) project rolled out by the government.

The Metropolitan Waterworks and Sewerage System (MWSS), the agency in charge of the project, yesterday identified the prospective bidders that passed the prequalification stage as:

• Consortium of First Philippine Holdings Corp. and Spain’s Abeinsa Infraestructuras Medio Ambiente, S.A.;

• Filinvest Agua Consortium (composed of Filinvest Development Corp. and Tecnicas De Desalinizacion De Aguas, S.A.)

• San Miguel Holdings Corp.-Korea Water Resources Corp. consortium;

• Team Polaris-Manila Water consortium (Manila Water Company, Inc., M.E. Sicat Construction, Inc., and J.H. Patawaran Construction, Inc.); and

• Prime Alloy Water Consortium (Prime Water Infrastructure Corp., Malaysia’s MTD Capital BHD and United Kingdom’s Biwater International Ltd.)

“The bid documents, which will govern the preparation and evaluation of bids, will be made available at a later date to be announced by the MWSS prequalifications, bids and awards committee (PBAC),” MWSS said in an e-mail.

“As soon as the bid documents are issued to the five prequalified bidders, they will be given sufficient time to prepare their technical and financial proposals, the deadline of which shall be indicated in the bid documents.”

Asked for a timetable, MWSS said issuance of the bid documents — which will include instruction to bidders, minimum performance standards and specifications, and draft build-operate-transfer (BOT) contract — will likely take place next month. Deadline of bid submission will be some time next year, according to the agency.

MWSS last June sought interested parties for the BBWSP. Besides those that pre-qualified, other firms that bought documents were: Aboitiz Equity Ventures, Inc.; Maynilad Water Services, Inc.; Datem Water, Inc; Marubeni Corp.; Megawide Construction Corp.; New San Jose Builders, Inc.; Sojitz Corp. and Acciona Agua.

The BBWSP involves the design, financing, construction, development, operation and maintenance of facilities that will supply treated water to 22 Bulacan water districts. The project — to be conducted in three phases — will be executed via a 30-year BOT contract with the government.

According to an MWSS brief, the BBWSP aims to address the water requirements of Bulacan and eventually reduce groundwater extraction and use of deep wells in the province. The agency noted that since the construction of the Ipo Dam and Angat Dam, the province has been the main source of Metro Manila’s water. Located in Norzagaray, Angat Dam alone currently supplies more than 90% of Metro Manila’s potable water.

Besides the BBWSP, MWSS also recently rolled out another PPP project: the P18.7-billion New Centennial Water Source-Kaliwa Dam Project (NCWS-KDP). The MWSS last June said this project will involve a 25-year contract for a dam with capacity of 600 million liters per day (MLD), a 2,400 MLD water conveyance tunnel and access roads, bridges and drainage system in General Nakar, Quezon.

A second water source project for Metro Manila — involving construction of Laiban Dam in Tanay, Rizal — will also be auctioned off.

MWSS earlier this month identified eight firms that bought pre-qualification documents and attended the conference for the NCWS-KDP, namely: San Miguel Holdings; Filinvest; DM Consunji, Inc.; Megawide; Prime Metroline Holdings, Inc.; San Lorenzo Ruiz Builders & Developers Group, Inc.; Abengoa Abeinsa Business Development; and Obrascon Huarte Lain S.A.

Deadline for submission of prequalification documents was set on Jan. 15, but bidding schedule has yet to be set.

The government has so far awarded eight PPP projects since the flagship infrastructure thrust was launched in late-2010, namely: P2.01-billion Daang Hari-South Luzon Expressway Link Road; P15.52-billion Ninoy Aquino International Airport Expressway; P16.42-billion first phase of the PPP for School Infrastructure Project (PSIP); PSIP’s P3.86-billion second phase; P5.69-billion Philippine Orthopedic Center modernization; P1.72-billion Automatic Fare Collection System; P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building; and P64.9-billion Light Rail Transit Line 1 Cavite Extension.