Archive for the ‘News’ Category

Mactan-Cebu International Airport finished by 2018 as world’s first resort-airport

Angmalaya.net, 25 July 2014

By Uel Balenia

 

Mactan-Cebu International Airport (MCIA) is an existing passenger terminal accepting both international and domestic flights.

The terminal is designed to accommodate 4.5 million passengers a year, however, starting 2011 it was accommodating 6.2 million passengers per year.

MCIA is the second busiest airport in the country. It was listed in the top 20 ASEAN  airports last 2011.

With the said situation, it is indeed timely to rehabilitate and turn the old airport into world-class terminal.

“The project involves the construction of a new world-class passenger terminal building in MCIA, with a capacity of about 8 million passengers per year; and the operation of the old and new facilities. The construction of a new world-class passenger terminal, including all related facilities, is proposed to separately cater to domestic and international operations,” the government said.

Megawide Construction Corp. in partnership with India’s GMR, through public-private partnership, will develop the said airport. It is estimated to be completed coming January 2018.

When finished, it will be the first resort-airport in the world. “The airport terminals will reflect the rich Cebuano heritage in a state of the art design with a soothing resort-like atmosphere conceptualized by international and Cebuano designers,” said Megawide spokesman Louie Ferrer.

 

LRTA Board OKs awarding of LRT extension to MPIC, Ayala

ABS-CBN News, 25 July 2014

 

MANILA, Philippines – After several delays, the Light Rail Transit Authority (LRTA) has approved the awarding of the P65 billion Light Rail Transit Line 1 (LRT-1) Cavite extension project to the tandem of Metro Pacific Investments Corp. (MPIC) and Ayala Corp.

LRTA spokesperson Atty. Hernando Cabrera said the LRTA Board has finally approved the awarding of the project to the Light Rail Manila Consortium based on the recommendation of the Department of Transportation and Communications (DOTC) Special Bids and Awards Committee (SBAC) on Monday.

“The LRTA Board approved the award as recommended by the SBAC,” Cabrera said.

The LRTA Board, chaired by Transportation Secretary Jun Abaya, is composed of officials of the Department of Public Works and Highways (DPWH), Department of Budget and Management (DBM), Department of Finance (DOF), National Economic and Development Authority (NEDA), Metropolitan Manila Development Authority (MMDA), Land Transportation Franchising and Regulatory Board (LTFRB) , LRTA administrator, and a representative from the private sector.

The NEDA Board, chaired by President Aquino, had also approved the offer made by the consortium in June.

According to Cabrera, the LRTA Board gave Abaya the go-signal to sign and issue the Notice of Award and Concession Agreement for the for the public-private partnership (PPP) project.

“Secretary Abaya was authorized to sign and issue the Notice of Award and the Concession Agreement,” Cabrera said.

The LRTA Board’s meeting on the project was postponed twice, the first due to the lack of quorum and the second because of Typhoon Glenda.

The meeting was held Wednesday but the awarding of the project was not discussed because other items in the agenda were prioritized.

The LRTA Board met again Friday morning where the award of the project to the MPIC-Ayala group was finally approved.

The Cavite extension project involves increasing the LRT-1 from 20.7 kilometers to 32.4 kilometers with a new south endpoint in Niog, Bacoor, Cavite.

It aims to provide LRT services to an estimated 4 million residents of Parañaque, Las Piñas, and Cavite.

The project’s bidding faced controversy after SM Prime Holdings Inc. filed a case against the DOTC and LRTA in relation to the transfer of the proposed LRT and Metro Rail Transit common station to Ayala’s Trinoma Mall instead of the original location in SM North EDSA Mall.

SM argued that based on a memorandum of agreement signed in 2009, the common station should be built near its mall and not Ayala’s.

 

LRTA Board clears award of LRT1 Cavite Extension Project to Ayala-MPIC tandem

InterAksyon, 25 July 2014

By Darwin G. Amojelar

 

MANILA – The board of the Light Rail Transit Authority (LRTA) has approved the award of the P64.9 billion LRT Line 1 Cavite Extension Project to the Ayala-Metro Pacific joint venture.

Hernando Carbrera, corporate secretary of LRTA, said the board this morning approved the awarding of contract for the project to Light Rail Manila Consortium.

“The LRTA Board approved the award based on the recommendation of the Special Bids and Awards Committee (SBAC) finding the said recommendation proper and in order,” Cabrera said.

He said the board also authorized Transport Secretary Joseph Emilio Abaya to sign and issue the notice of award and concession agreement.

The LRTA Board is composed of 8 ex-officio cabinet members, chaired by the secretary of the Department of Transportation and Communications (DOTC), with the heads of the Department of Public Works and Highways (DPWH), of Budget and Management (DBM), and of Finance (DOF), of the National Economic and Development Authority (NEDA), the Metropolitan Manila and Development Authority (MMDA), the Land Transportation and Franchising Regulatory Board and of the LRTA as members. The board has one representative from the private sector.

“We will await the LRTA Board resolution approving the BAC’s recommendation to award the project. Once he receives the resolution, Secretary Abaya may then issue the notice of award to Light Rail Manila Consortium,” Michael Arthur Sagcal, DOTC spokesperson said.

To recall, the board of the NEDA approved the P9.35 billion premium that Light Rail Manila offered on top of the project’s P64.9-billion tab.

A tandem between Ayala Corp and Metro Pacific Investments Corp (MPIC), Light Rail Manila was the lone bidder for the project, one of the public-private partnership (PPP) ventures of the Aquino administration.

Jose Ma. K Lim, president of MPIC, had said the company expects the right of way acquisition to start in 2015 and the construction to be completed by 2020.

MPIC has a 32-year concession to operate and maintain the service for LRT.

The southbound extension of LRT1 would increase the train’s span from 20.7 kilometers to 32.4, with approximately 10.5 kilometers of the extension elevated and 1.2 kilometers at grade.

DOTC said more than 500,000 commuters everyday use LRT1, which runs from Baclaran in Pasay City to Roosevelt in Quezon City. The southern part of Metro Manila and neighboring Cavite province is home to nearly 4 million people.

InterAksyon.com is the online news portal of TV5, which like MPIC is chaired by Manuel V. Pangilinan.

 

GenSan to develop modern food terminal, market complex through PPP

PTV News, 24 July 2014

 

The city government is planning to develop within the next three years a modern integrated food terminal and public market complex through the public-private partnership (PPP) scheme.

City Mayor Ronnel Rivera said Thursday they are currently exploring possible investments partnerships with the private sector for the multimillion integrated food terminal and several other major projects through the assistance of the national government’s PPP Center.

He said they signed an internship agreement last week with the PPP Center to expedite the forging of investment partnerships for the projects.

Aside from the integrated food terminal, he said they are planning to link with the private sector for the development of more farm-to-market roads and agri-industrial facilities as well as the expansion and upgrading of the city’s central public market.

“Our goal here is to make GenSan the agri-industrial hub of Region 12. In doing so, we also want to give opportunities to small enterprises as well as open more employment for our constituents,” Rivera said.

Based on their memorandum of agreement, the PPP Center will specifically help capacitate the city government in pursuing PPP linkages for the integrated food terminal and city public market components of the Integrated Economic Development for Regional Trade (IEDRT) in General Santos City Project.

The internship program agreement is part of the PPP Center’s strategy initiative on engaging local government units for PPP linkages.

Under the agreement, the PPP Center, which is an attached agency of the National Economic and Development Authority (NEDA), will provide hands-on training and assistance to the city’s PPP Board, PPP technical working group facilitated by the City Economic Management and Cooperative Development Office and PPP selection committee, which will be in charge with project development and bid management of identified PPP projects.

The agency will also mentor the city’s PPP team in the areas of project development, bidding and competition, and implementation.

Rivera said the IEDRT program is a priority strategic economic support initiative of the city government that is aimed at spurring infrastructure investments and improve the area’s capability to serve as the food and trading center of the greater part of Region 12.

He specifically cited the provinces of South Cotabato, Sultan Kudarat, Sarangani and this city, which forms part the Socsksargen growth area.

“The project seeks to improve the physical and institutional linkages among the various stakeholders of the city’s food chain industry, he said.

The mayor said it also aims to benefit local residents through the creation of a network of food market-related activities that will spur the city’s economic development while also expanding access to quality and healthy food at a regional scope.

He said a pre-feasibility study on the program was commissioned by the Cities Development Initiatives for Asia in response to the request of the local government for a pre-assessment of the economic situation of the city.

In support of the project, the city council earlier passed a resolution approving the PPP implementation and another measure that authorizes the mayor to enter into an internship program agreement with the PPP Center.

“One of the problems in implementing PPPs here in the city is that no one has the exact knowledge on how to do it. This assistance coming from the PPP Center will be a great help so that we, in the local government, can finally engage knowledgeably in such ventures,” Rivera said.(PNA)

 

GenSan to develop food terminal, public market thru public-private partnership

Minda News, 24 July 2014

 

GENERAL SANTOS CITY (MindaNews / 24 July) – The city government is planning to develop within the next three years a modern integrated food terminal and public market complex through the public-private partnership (PPP) scheme.

City Mayor Ronnel Rivera said they are currently exploring possible investments partnerships with the private sector for the integrated food terminal and several other major projects through the assistance of the national government’s PPP Center.

He said they signed an internship agreement last week with the PPP Center to expedite the forging of investment partnerships for the projects.

Aside from the integrated food terminal, he said they are planning to link with the private sector for the development of more farm-to-market roads and agri-industrial facilities as well as the expansion and upgrading of the city’s central public market.

“Our goal here is to make GenSan the agri-industrial hub of Region 12. In doing so, we also want to give opportunities to small enterprises as well as open more employment for our constituents,” Rivera said in a statement.

Based on their memorandum of agreement, the PPP Center will help capacitate the city government in pursuing PPP linkages for the integrated food terminal and city public market components of the Integrated Economic Development for Regional Trade (IEDRT) in General Santos City Project.

The internship program agreement is part of the PPP Center’s strategy initiative on engaging local government units for PPP linkages.

Under the agreement, the PPP Center, which is an attached agency of the National Economic and Development Authority, will provide hands-on training and assistance to the city’s PPP Board, PPP technical working group facilitated by the City Economic Management and Cooperative Development Office and PPP selection committee, which will be in charge with project development and bid management of identified PPP projects.

The agency will also mentor the city’s PPP team in the areas of project development, bidding and competition, and implementation.

Rivera said the IEDRT program is a priority strategic economic support initiative of the city government that is aimed at spurring infrastructure investments and improve the area’s capability to serve as the food and trading center of the greater part of Region 12.

He specifically cited the provinces of South Cotabato, Sultan Kudarat, Sarangani and this city, which forms part the Socsksargen growth area.

“The project seeks to improve the physical and institutional linkages among the various stakeholders of the city’s food chain industry, he said.

The mayor said it also aims to benefit local residents through the creation of a network of food market-related activities that will spur the city’s economic development while also expanding access to quality and healthy food at a regional scope.

He said a pre-feasibility study on the program was commissioned by the Cities Development Initiatives for Asia in response to the request of the local government for a pre-assessment of the economic situation of the city.

In support of the project, the city council earlier passed a resolution approving the PPP implementation and another measure that authorizes the mayor to enter into an internship program agreement with the PPP Center.

“One of the problems in implementing PPPs here in the city is that no one has the exact knowledge on how to do it. This assistance coming from the PPP Center will be a great help so that we, in the local government, can finally engage knowledgeably in such ventures,” Rivera said.

 

LRTA board OKs LRT 1 Cavite extension project award to MPIC, Ayala

Rappler, 25 July 2014

 

The LRT extension project will be formally awarded to the Light Rail Manila Consortium after the DOTC receives the LRTA Board Resolution on its approval

MANILA, Philippines – The Light Rail Transit Authority (LRTA) Board on Friday, July 25, has approved the recommendation to award the P65 billion ($1.5 billion*) LRT1 Cavite extension project to the tandem of infrastructure giant Metro Pacific Investments Corporation (MPIC) and conglomerate Ayala Corporation.

Light Rail Manila was the only one that submitted an offer for the public-private partnership (PPP) project. The consortium is led by MPIC, with a 55% stake, and Ayala, with 35%. Macquarie Infrastructure Holdings (Philippines) Pte Ltd holds the remaining 10%.

The Board’s approval to award the Public-Private Partnership (PPP) project to the Light Rail Manila Consortium was based on the recommendation made by the Department of Transportation and Communications (DOTC) Special Bids and Awards Committee (SBAC) on July 21, LRTA spokesperson Hernando Cabrera said.

“The LRTA Board approved the award as recommended by the SBAC,” Cabrera stressed.

Transportation Secretary Joseph Emilio Abaya chairs the LRTA Board, which has 8 ex-officio members.

The others are the heads of the Department of Public Works and Highways, Department of Budget and Management, Department of Finance, National Economic and Development Authority, Metropolitan Manila Development Authority, the LRTA, and the Land Transportation Franchising and Regulatory Board; and a representative from the private sector.

The LRTA Board authorized the DOTC chief to sign and issue the Notice of Award and Concession Agreement for the project, Cabrera said.

The DOTC is awaiting the LRTA Board resolution approving the award of the PPP project to the consortium, DOTC spokesman Michael Arthur Sagcal said in a text message.

“We will await the LRTA Board Resolution approving the SBAC’s recommendation to award the project. Once the resolution is received, Secretary Abaya may then issue the Notice of Award to the Light Rail Manila Consortium,” Sagcal said.

The NEDA Board chaired by President Benigno Aquino III approved on June 19 the offer made by the Light Rail Manila Consortium.

DOTC previously clarified that Transportation Undersecretary Rene Limcaoco did not favor the lone bidderfor the public-private partnership (PPP) project, contrary to reports that he did so because his brother, Jose Teodoro, is working for the Ayala group.

The LRT extension project will lengthen Line 1 from 20.7 kilometers to 32.4 km, with a new south endpoint in Niog, Bacoor, Cavite. Approximately 10.5 km of the Cavite Extension System will be elevated and 1.2 km will be at grade level.

The extension will serve nearly 4 million residents of Parañaque, Las Piñas, and Cavite.  Rappler.com

*($1 = P43.22)

 

DPWH submits Calax project documents to Malacañang

Rappler, 24 July 2014

 

Malacañang has yet to decide on the appeal made my San Miguel over its disqualified bid for the P35.4-billion PPP project

MANILA, Philippines – The Department of Public Works and Highways (DPWH) has submitted to Malacañang all the documents pertaining to the controversy surrounding the bidding of the P35.4-billion ($819.69 million*) Cavite-Laguna (Calax) expressway project.

The agency has already forwarded the documents needed by the Office of the President (OP) to decide on the appeal made by diversified conglomerate San Miguel Corporation, DPWH Secretary Rogelio Singson said in a text message Wednesday, July 23.

“We did submit documents the OP legal wanted,” Singson said.

Team Orion, a 50-50 joint venture between Ayala’s AC Infrastructure Holdings Corporation and Aboitiz Land, wrote the OP, seeking for the dismissal of San Miguel’s appeal.

San Miguel’s Optimal Infrastructure Development Inc. was disqualified by the DPWH due to a non-compliant bid security.

AC Infrastructure Executive Vice President Noel Kintanar said they are urging Malacañang to immediately lift and dissolve the “stay order” issued on June 30, stopping the DPWH from implementing the June 11 resolution disqualifying Optimal Infrastructure from the bidding for the public-private partnership (PPP) project.

San Miguel should have followed the process of appeal and should have paid P175 million ($405,268.10) to the agency’s Bids and Awards Committee (BAC) to appeal the case, Kintanar added.

‘Ghost’ bid

San Miguel spoiled its evidence after it withdrew its technical and financial bids envelopes from the DPWH Bids and Awards Committee during the opening of financial bids on June 13, Team Orion spokesperson Roman Azanza III said.

Azanza described San Miguel’s P20.105 billion ($465.61 million) offer – higher than Team Orion’s P11.659 billion ($269.73 million) – as a “dead” or “ghost” bid.

“… Its legally [a] non-existent bid – a bid that was returned unopened and that was, in a manner of speaking, officially dead, especially after appellant spoiled it as evidence,” Azanza added.

According to him, San Miguel has created a ghost bid in an attempt to marshal public opinion that its bid was P9 billion more than that of the highest bidder to pressure the government into reversing the bidding process.

He warned that the controversy puts in peril close to P900 billion ($20.84 billion) worth of major infrastructure projects being under the Aquino administration’s PPP scheme.

“We stand more to lose as a nation if we do not respect our own bidding rules and procedures. We need to keep the hard-earned confidence of investors in the stability and integrity of our public bidding process,” Azanza added. – Rappler.com

 

Ayala-Aboitiz tandem vows to finish Cavite-Laguna road in 5 years

Manila Standard Today, 24 July 2014

By Alena Mae S. Flores

 

Team Orion Consortium, composed of Ayala Corp.’s AC Infrastructure Holdings Corp. and Aboitiz Land Inc., said Wednesday it will complete the construction of the 44.6-kilometer Cavite-Laguna Expressway project in five years, once the government turns down the appeal of rival bidder San Miguel Corp.

Team Orion said it expected Malacañang Palace to soon address the concerns raised by San Miguel unit Optimal Infrastructure Development Inc., questioning its disqualification from the P34.5-billion toll road project.

“Once awarded, count five years for us to build,” AC Infrastructure executive vice president Noel Eli Kintanar said.

Kintanar said AC Infrastructure had not yet received a response from Malacañang since it filed the comment on July 18.

“We first filed a notice to intervene and made a comment on the appeal…We are not making the comment to rush the process. We are making a comment so that the right outcome is  achieved,” Kintanar said.

“We’re hoping that the Malacanang’s decision is right which is reflected in our appeal,” he said.

Team Orion spokesman Roman Azanza III said the bidding rules should be respected and a “dead bid” should not be entertained.

Team Orion earlier said Optimal could not be allowed to undo and reset the bidding process, after it was disqualified for submitting an “erroneous” and “deficient” bid, on the basis of a claim that it submitted a superior bid of P20.1 billion compared with Team Orion’s P11.65 billion.

“If the well-established rules of BOT [build-operate-transfer] and PPP [public-private partnership] which ensure transparency, is cast aside, if it is not respected, that hit to the very foundation of what PPP wants to achieve,” Azanza said.

Azanza said Team Orion filed a motion to intervene with Malacañang because “we want our voice to be heard on this very important matter.”

 

Orion optimistic of positive Malacañang action on Calax

Malaya Business Insight, 24 July 2014

 

The consortium of Ayala Corp and Aboitiz Land Inc. is optimistic that Malacañang will dismiss the appeal of San Miguel Corp. and will proceed with the award of the Cavite Laguna expressway (Calax) project soon.

The Office of the President has until July 30, 2014 to issue a decision on the appeal of SMC unit Optimal Infrastructure Development Corp. seeking for the dismissal of its disqualification from the bidding by the Department of Public Works and Highways.

Noel Kintanar, executive vice president of AC Infra Holdings Corp., said the consortium is yet to get a response from Malacanang.

Team Orion consortium which is 50:50 owned by Ayala and Aboitiz, has asked the Malacanang to dismiss the appeal of SMC and affirm the June 11, 2014 resolution disqualifying it as a bidder for Calax project.

Roman V.  Azanza III, Aboitiz Equity Venture first vice president for business development, said “ if the well-established rule of the BOT (build-operate-transfer) which tries to ensure process and transparency, if not respected  hits at the  very foundation of the whole PPP (public-private partnership) …(of the whole) BOT program (which is a) level playing field.”

Azanza added: “The bid was spoiled. It was completely taken out of the whole established BOT, PPP, DPWH bid process.”

Under the BOT law that governs the bidding of the Calax project and all other PPP projects, if a bidder fails to comply with any of the requirements of the bid, its financial proposal should be returned unopened and the bidder shall be disqualified from further participating in the bidding, regardless of whatever its bid amount might have been.

Team Orion consortium which submitted the highest bid of P11.650 billion outbidded two other bidders.

Calax is anticipated to be completed in five years from date of construction.

Kintanar said that once the project is awarded to the company, it has to submit an engineering design of the project and wait for the government to deliver the right of way (ROW) for maximum of two years then the start construction.

The Calax is the biggest tollroad project bid out under the PPP. The 44.7-kilometer expressway will start from CAVITEX in Kawit, Cavite and end at the SLEX-Mamplasan Interchange in Biñan, Laguna.

Aboitiz, Ayala seek quick resolution of Calax impasse

Business Mirror, 23 July 2014

By Lorenz S. Marasigan

 

The tandem of Aboitiz Land Inc. and Ayala Corp. urged President Aquino to hasten the resolution of rival San Miguel Corp.’s (SMC) appeal on the disqualification of its bid for the P35.2-billion Cavite-Laguna Expressway (Calax) deal.

Aboitiz Equity Ventures Inc. First Vice President Roman Anthony V. Azanza III said his group is requesting Malacañang to fast-track the appeals process to avoid further delays in the project’s implementation.

“It is our prayer that they resolve the appeal as soon as possible based on facts presented,” he said in a discussion with reporters on Wednesday.

AC Infrastructure Holdings Corp. Executive Vice President Noel Eli B. Kintanar, for his part, reminded Mr. Aquino to resolve the case with due diligence, and not base the decision on mere emotions and baseless assumptions.  “We’re not making a comment to rush the process, were making a comment to have a right outcome,” he stressed.

At the heart of this legal tussle is the appeal of SMC unit Optimal Infrastructure Development Inc. before the President, pleading for the reconsideration of its disqualified bid for the much sought-after deal.

In response, the Executive branch ordered the firm to submit a memorandum appeal, which contains a concise explanation of the group’s stance.

The Palace also issued a 30-day stay order on June 30 against the resolution of the public works  department that barred Optimal from joining the auction as a result of a defective bid security

Its financial proposal was opened in front of reporters during the auction, revealing that the firm is offering to build and operate the expressway with a premium of P20.105 billion.

The proposal was P8.45 billion higher than the P11.65-billion premium offer made by Team Orion, which emerged as the front-runner during the bidding following the disqualification of Optimal.

Azanza, who sits as a spokesman for Team Orion, called the rival’s offer a “dead bid” as the proposal of the infrastructure arm of the country’s largest conglomerate is legally nonexistent.

“The disqualified bidder’s appeal for reversal of the resolution is anchored on an extraneous factor, namely the alleged amount of its financial bid, which was returned to the appellant unopened and simply cannot be verified,” he said.

“It’s dead from the beginning,” Kintanar said.

The project is a 47-kilometer thoroughfare that would start from the Manila-Cavite Expressway in Kawit, Cavite, and end at the South Luzon Expressway (Slex)-Mamplasan Interchange in Biñan, Laguna. It would consist of nine interchanges and a toll barrier before the Slex.

The third public-private partnership project under the Department of Public Works and Highways, the expressway is seen to decongest traffic along the Cavite-Laguna road network.

Construction of the multibillion-peso expressway is seen to start by October next year. It is expected to be completed by September 2017.