Archive for the ‘News’ Category

P50.11-B prison PPP to be bid out in May

The government disclosed that the bidding for the country’s first-ever prison Public Private Partnership (PPP) Project has been set in May 2015.

In the recent invitation to prequalify and bid issued by the Department of Justice (DOJ), the government said the new penal facility to be built through the P50.11-billion Regional Prison Facilities project will be in Fort Magsaysay in Nueva Ecija.

“It [the project] envisions to create a ‘humane’ prison condition that will provide adequate living spaces, facilities, and address the basic needs of inmates incarcerated in the existing penal facilities,” the PPP Center said.

The new facility will house some 26,880 inmates and staff from the New Bilibid Prison and the Correctional Institution for Women, as well as housing and administrative buildings. It will also contain rehabilitation facilities, such as for sports, work and religious activities.

The project will be implemented using a build-transfer-maintain (BTM) contractual arrangement, where a private entity will undertake the financing and construction of the infrastructure facility.

After the facility is completed, the private entity will turn over the facility to the DOJ. The agency will then pay the private firm its total investment, plus a reasonable rate of return, for undertaking the project.

The government also said the maintenance of the facility will also be granted to the private-sector firm on behalf of the DOJ based on specifications contained in the BTM agreement.

In 2011 PPP Center Executive Director Cosette Canilao said undertaking a PPP for the prison facilities to allow the government to also undertake a PPP for the utilization of the present location of the New Bilibid Prison in Muntinlupa City.

Mark Rathbone of the PricewaterhouseCoopers Professional Advisors Inc. said prisons is one of the easiest PPP projects to undertake. He said New Zealand’s first PPP was to privatize a prison.

The United Kingdom pioneered PPP in the 1980s, when it first developed the program to fund school and hospital projects. The UK’s PPP portfolio has since expanded to include many other sectors.

The government aims to focus on the PPP and the need to further strengthen investor and the public’s confidence in the revised PPP framework.

Business Mirror, 01 March 2015
By Cai Ordinario

Megaworld a latecomer to the powerhouse team

When four major companies announced they were forming Team Trident to bid for the government’s largest infrastructure project so far—the Laguna Lakeshore Expressway Dike project, many wondered if Megaworld Corp. of tycoon Andrew Tan was only belatedly included in the team.

Initial reports named SM Prime Holdings Inc., Aboitiz Equity Ventures and Ayala Land Inc. as potential partners for the project and they called the consortium as Team Trident, which means three-pronged spear.

Megaworld officials, however, were quick to clarify the matter, saying the property developer had long been invited to be part of the consortium that would bid for the big-ticket project. A company source said Megaworld was invited by Ayala Land and Aboitiz Equity to be part of the consortium at the same time they talked to SM Prime.

The source said the consortium members agreed to only reveal the composition of the group on the last day of submission of the bid for the Laguna Lakeshore project. The same source said Megaworld agreed to be part of the consortium, even though it is very much capable of bidding for the project on its own.

So how will this consortium fare against the three other groups, namely San Miguel Holdings Corp., Alloy-PAVI-Hanshin LLEDP Consortium of Malaysia and Rainbow Holdings Corp. of Korea that have submitted documents to prequalify for the bidding of the P123-billion PPP project? Let’s wait until July 6, when the Public Works Department is set to open the financial bids of the four groups.

Manila Standard Today, 01 March 2015
By Jenniffer B. Austria

MVP suggests solution to train station row

MANILA, Philippines – Infrastructure giant Metro Pacific Investments Corp. (MPIC) is suggesting that a station be constructed in the middle of SM North EDSA and Trinoma Mall to end the impasse on the proposed Metro Rail Transit (MRT) and Light Rail Transit (LRT) common station.

MPIC chairman Manuel V. Pangilinan said in an interview with reporters that the Department of Transportation and Communications (DOTC) should consider putting a common station in the middle of the two malls.

“That is what we suggested. There could be one exit to Trinoma and one exit to SM,” Pangilinan said.

Transportation Secretary Joseph Emilio Abaya has been pushing for the construction of a second common station in front of SM North EDSA that would interconnect LRT-1 and the proposed P63-billion MRT-7 of Universal LRT Corp. (ULC) owned by San Miguel Holdings Corp. of diversified conglomerate San Miguel Corp. (SMC).

The DOTC has earlier picked Trinoma Mall of conglomerate Ayala Corp. as the site of the P1.4-billion common station to house MRT-3 along EDSA and LRT-1 from Taft Ave.

The transfer of the proposed common station to the Trinoma Mall instead of SM

City North EDSA is still pending with the Supreme Court.

SM Prime has obtained a temporary restraining order (TRO) from the Supreme Court preventing the DOTC from transferring the location of the common train station in front of Trinoma Mall instead of SM City North EDSA based on an agreement in 2009

MPIC president Jose Ma. K. Lim said putting up two common stations would be inefficient.

“What we heard was that there are two stations which we think is not very efficient. There should be one station for all three lines- LRT-1, MRT-7, and MRT-3,” Lim added.

MPIC and the Ayala Group are partners in Light Rail Manila Consortium that was awarded the P65-billion LRT-1 Cavite extension project that would extend the mass transit system all the way to Niog in Bacoor, Cavite from Baclaran in Pasay City.

The lead member of the group is MPIC through MPIC Light Rail Corp. with 55 percent followed by Ayala’s AC Infrastructure Holdings Corp. with 35 percent and Macquaire Infrastructure Holdings (Philippines) Pte Ltd. with 10 percent.

In 2008, the DOTC and ULC signed a contract to build the 22.8-kilometer rail system from North Ave. corner EDSA in Quezon City, passing through Commonwealth Ave., Regalado Ave. and Quirino Highway up to the proposed Intermodal Transportation Terminal in San Jose del Monte, Bulacan

The MRT-7 project is expected to carry two million passengers a year. SMC is in the middle of completing the financial closing for the project.

The Philippine Star, 02 March 2015
By Lawrence Agcaoili

MPIC officials skeptical over plan to build two common stations for train systems

A TOP official of a company that secured a public-private partnership (PPP) deal to extend Light Rail Transit Line 1 (LRT-1) from Baclaran to Bacoor, Cavite is skeptical about having two common stations for train systems that will converge in the North Avenue area in Quezon City.

“We haven’t received an official word on that, although we heard there are discussions going on. In fact, what we heard is that there are two stations which we think is not very efficient,” Metro Pacific Investments Corp. (MPIC) President Jose Ma. K. Lim told reporters during a briefing in Makati City on Thursday. MPIC and Ayala Corp., through its consortium Light Rail Manila, last year bagged the P64.9-billion LRT-1 Cavite Extension PPP deal, which is bundled with the preliminary design of the proposed common station.

“It should be one station in all three lines for LRT-1, MRT-7 (Metro Rail Transit Line 7) and MRT-3,” Mr. Lim added.

He made these remarks after the Department of Transportation and Communications (DoTC) in November said that “negotiations are ongoing” for a proposed second common station near SM City North EDSA that will connect MRT-7 to MRT-3. Meanwhile, the proposed first common station near Ayala’s TriNoma mall will then connect LRT-1 and MRT-3.

“We will suggest for just one common station in the middle, one exit to SM North EDSA and one exit to TriNoma. Through this, it will increase foot traffic in both malls. This is better instead of putting up two common stations wherein passengers will need to transfer from one common station to the other,” MPIC Chairman Manuel V. Pangilinan told reporters during the briefing.

The Transportation department’s new approach is meant to resolve a conflict with SM Prime Holdings, Inc. over the common station. SM Prime last year secured a Supreme Court stay order stopping DoTC from transferring the location of the common station to TriNoma mall.

This was after the government last year insisted that putting up the proposed common station near TriNoma mall would result in “P1 billion in savings to the government” and allow passengers to benefit as the Quezon City government is establishing the North Triangle area as a new business district.

Under a Sept. 28, 2009 memorandum of agreement between the SM unit and state-run Light Rail Transit Authority (LRTA), the common station should be beside SM North EDSA, after it paid the government P200 million for the naming rights to the proposed station.

“The government should not shoulder the cost for the construction of common station. Owners of the two malls (TriNoma and SM City North EDSA) should pay for it as it will increase foot traffic in both of their establishments,” Mr. Pangilinan added.

Transportation Secretary Joseph Emilio A. Abaya in December said Universal LRT Corp. (ULC) would finance a second common station near SM North EDSA, while the government would fund the other station near TriNoma Mall.

San Miguel Corp.-backed ULC is the proponent of the MRT-7, a new railway line that involves the construction of 14 train stations starting from San Jose del Monte, Bulacan, to North Avenue, Quezon City. Under the concession agreement, MRT-7 will be connected to the existing MRT-3 and LRT-1 via a common station on EDSA.

“The government should call all affected groups for a discussion and fix this issue as soon as possible. Not talk to each group separately,” Mr. Pangilinan added.

Nine PPP deals have been awarded since the flagship infrastructure program was launched in late 2010: P2.5-billion Integrated Transport System-Southwest Terminal project; P17.52-billion Mactan-Cebu International Airport Project; P64.9-billion LRT Line 1 Cavite Extension; P1.72-billion Automatic Fare Collection System; P2.01-billion Daang Hari-South Luzon Expressway Link Road; P15.52-billion Ninoy Aquino International Airport Expressway; P16.28-billion first phase of the PPP for School Infrastructure Project (PSIP); PSIP’s P3.86-billion second phase; and P5.69-billion Philippine Orthopedic Center modernization.

MPIC is one of the three main Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philippine Long Distance Telephone Co. (PLDT) and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld.

Business World, 01 March 2015
By Chrisee J.V. Dela Paz

Gov’t sets P35.4-B CALAX project rebid in 3 months

Foreign and local bidders wanting a second shot at vying for the P35.4-billion Cavite-Laguna Expressway (CALAX) project only have three months to prepare their competitive offers.

According to the Department of Public Works and Highways (DPWH), bidders should submit their prequalification documents, technical and financial documents all together on May 19 under a single-stage qualification and rebidding procedure for the CALAX project rebidding.

“Under the single-stage bidding, we will open the financial documents right away. Whoever offers the highest consortium fee, we will open their qualification documents. If found disqualified, we will go to the next highest financial offer so we can speed it up,” DPWH Undersecretary Rafael Yabut told reporters in an interview yesterday.

The DPWH is set to issue instructions to prospective bidders from March 10 to May 18 to aid prospective bidders, who are required to pay a non-refundable fee of P100,000 to access bidding documents. The bid parameter shall be the highest premium bid offered with the floor price of P20.105 billion.

At least four groups joined the original auction of the CALAX project, including Alloy MTD, Team Orion, Metro Pacific Tollways Development Corp., and Optimal Infrastructure Development, Inc. (OIDI). However, President Benigno S. Aquino ordered the re-auction of CALAX after it reconsidered the disqualification of OIDI. A unit of diversified conglomerate San Miguel Corp., OIDI reportedly offered P20.105-billion premium bid while the next complying bidder, Ayala-Aboitiz’s Team Orion, offered P11.7 billion. The National Economic and Development Authority (NEDA) Board has approved the rebidding of the CALAX project with a minimum premium bid price of P20.1 billion.

The CALAX project covers the finance, design, construct, operate and maintain the 45.5-kilometer toll road that connects the Kawit exit of the Manila-Cavite Toll Expressway or Cavitex to the Mamplasan Exit of South Luzon Expressway.

Once constructed, the CALAX is expected to decongest traffic at the Cavite-Laguna region, reducing travel time from Cavite to Laguna and to Metro Manila. The infrastructure is also seen to improve competitiveness of the Calabarzon Region as an investment destination.

The winning contractor will have the right to operate and maintain the four-lane road for 35 years, inclusive of the design and construction period.

Manila Bulletin, 28 February 2015
by Kris Bayos

Public Works department releases terms for Cavite-Laguna Expressway rebid

MANILA – The terms for the rebid of the Cavite-Laguna Expressway (CALAX) Project have been released.

In its invitation to bid, the Department of Public Works and Highways (DPWH) said interested parties have until May 19 to submit their technical and financial proposals for the P35.4 billion public-private partnership (PPP) project.

Bid documents will be available starting March 10 until May 18 and could be purchased for a non-refundable fee of P100,000. Financial bids will be opened on May 19 and the project awarded to the winning bidder in August.

DPWH Undersecretary Rafael Yabut said the agency will adopt a single stage bidding for the project in line with Section 5.7 of Republic Act No. 6957 or the Build-Operate-Transfer (BOT) Law.

The agency set the floor price at P20.105 billion, which was the offer made by San Miguel Corporation’s Optimal Infrastructure Development Inc (OIDI), which DPWH had disqualified during the first auction.

Team Orion, a joint venture of the Aboitiz and Ayala groups, offered the highest qualified bid at P11.65 billion, topping the P11.33 billion of Metro Pacific Investment Corporation’s (MPIC) MPCALA Holdings.

San Miguel however sought President Aquino’s intervention, who in turn ordered a rebid.

The National Economic and Development Authority (NEDA) Board last week approved the rebid of the CALAX.

MPCALA Holdings, which renewed its bid bond for the CALAX, has yet to decide if it would participate in the rebid, but Team Orion already announced — shortly after the Palace ordered the rebid — that it will no longer join the second auction.

“We renewed our bid bond. We want to play safe. But we want to see the terms first before confirming our participation,” Ramoncito Fernandez, president of Metro Pacific Tollways Corporation (MPTC), had said. MPTC is the tollways unit of MPIC.

MTD Philippines, which lost during the first auction, did not renew its bid bond.

One of the Aquino administration’s PPP projects, the CALAX involves the financing, design, construction, operation and maintenance of a four-lane, 47-kilometer closed-system toll expressway connecting the CAVITEX and South Luzon Expressway (SLEX). It will start from the CAVITEX in Kawit, Cavite and end at the SLEX-Mamplasan Interchange in Biñan, Laguna.

CALAX will have interchanges in nine locations, namely Kawit, Daang Hari, Governor’s Drive, Aguinaldo Highway, Silang, Sta. Rosa-Tagaytay, Laguna Boulevard, Technopark, and a toll barrier before SLEX.

Upon completion, the CALAX is envisioned to decongest traffic along the Cavite-Laguna road network, reducing the travel time from Metro Manila to the CALA area and back.

CALAX is DPWH’s third PPP project. The first project, the Daang Hari-SLEX, was awarded to the Ayala group, while the second, the NAIA Expressway, went to San Miguel. is the online news portal of TV5, which like MPIC is chaired by Manuel V. Pangilinan.

InterAksyon, 27 February 2015
By Darwin G. Amojelar

Top PHL firms form consortium for P123-B Laguna Lakeshore Expressway bid

(Updated 4:56 p.m.) Four big names in Philippine business have formed a consortium to bid for the P122.8-billion Laguna Lakeshore Expressway Dike project, the biggest public-private partnership (PPP) initiative of the Department of Public Works and Highways (DPWH).

Aboitiz Equity Ventures Inc., Ayala Land Inc., Megaworld Corp. and SM Prime Holdings Inc. formed Trident Infrastructure and Development Corp., a joint venture incorporated for the purpose of pre-qualifying for bidding and evaluating the feasibility of the PPP project, the companies said in separate disclosures to the Philippine Stock Exchange on Friday.

Each of the four companies have an effective equal share of 25 percent in the consortium.

Four consortia filed initial documents on Friday to qualify to bid for the Laguna Lakeshore Expressway Dike project, among them Trident Infrastructure and Development Corp. – a partnership of Aboitiz Equity Ventures Inc., Megaworld Corp., Ayala Land Inc. and SM Prime Holdings Inc., according to a Reuters report.

The consortium filed the pre-qualification documents before the DPWH for the Laguna Lakeshore project, the companies said the dislosures.

Prospective bidders were given until 2 Friday to submit the prequalification documents, PPP Center director Christine Antonio told GMA News Online.

San Miguel and two other consortia – Rainbow Holdings Inc. and the MTD-PAVI-Hanshin Consortium that includes Malaysia’s MTD Capital Berhad – also submitted pre-qualification documents.

The deadline for submission of qualification documents for the Laguna Lakeshore project was moved from October 16, 2014, to January 14, 2015 and then to February 27 “to give more time for bidders as they requested even longer periods for extension,” DPWH Secretary Rogelio Singson earlier said.

24 companies bought bid documents for the project.

The expressway-dike project – which involves the construction of a 47-kilometer, flood-control dike cradling a six-lane toll road – seeks to ease the traffic flow and flooding in the Western coastal communities from Bicutan in Taguig to Calamba in Laguna along Laguna Lake, according to the PPP Center.

It covers a 700-hectare reclamation component abutting the expressway-dike and separated from the shoreline by a 100- to 150-meter channel in Taguig and Muntinlupa.

Team Trident combines the infrastructure expertise of the Aboitiz and Ayala groups as well as the reclamation and land development experience of Aboitiz, Ayala Land, Megaworld and SM Prime, according to the disclosure.

“The consortium also benefits from the combined financial muscle and the national and international network of experts that the four companies have, which will be able to benefit millions of Filipinos and thousands of businesses along the western shore of Laguna de Bay,” the companies said. – VS, GMA News

GMA News, 27 February 2015
By Danessa O. Rivera

DTI, PPP Center holding roadshow in UK


MANILA, Philippines–The Department of Trade and Industry and the Public-Private Partnership (PPP) Center are holding a roadshow in the United Kingdom in June to make a pitch for investments in the country’s infrastructure projects and other sectors deemed crucial in sustaining inclusive growth.

“We are talking about a roadshow that the DTI and PPP Center are planning in June in the UK. That will be a big push particularly for the infrastructure projects that are being approved now. We are going to bring government representatives, Philippine investors, contractors (to make their pitch) as well as British companies who are operating here and who can speak of the opportunities here,” British Ambassador Asif Ahmad said on Friday.

The target, according to Ahmad, was to have at least 250 big companies and about 50 small and medium sized enterprises to participate in the two-day roadshow. This will give prospective UK investors the opportunity to hear the Philippines’ success story.

According to Ahmad, the roadshow will feature investment opportunities not only in infrastructure, but also in other sectors, depending on what the Philippine government wanted to highlight.

“We’re now talking about a great potential in Asia, the difference is that in the Philippines, things are really beginning to happen,” he said.

UK-based companies, Ahmad added, continued to flock to the Philippines which they believed had grown to become “an exciting market” given its expanding “spending population.”

Proof of this growing interest in the Philippines was the turnout at the Great British Festival held last weekend, which was participated by 58 British companies. This was twice the number of companies that took part in the same event last year.

“All the retail brands are here. If you look at cars, you already have the Jaguar, Land Rover and Mini Cooper. Aston Martin (Lagonda Ltd.) is expected to come this year, while Morgan Motor Co. came in last year. This year, more retail brands are coming in,” Ahmad said.

“Costa Coffee will open this year and will partner with some of the big and well-known supermarkets and retailers in the country,” he added.

Costa Coffee is a British multinational coffeehouse company that has set its sights in the Philippines as the next market for expansion in Southeast Asia.

Matt Kenley, international operations manager for Costa Coffee SEA and India, announced last year that the company was targeting to put up 80 Costa Coffee shops in the country within five years.

The Philippines, which was reportedly the fourth country that Costa Coffee was exploring in Southeast Asia, was deemed to be a thriving market with a huge potential, due largely to its robust economic growth and strong coffee culture, Kenley said during a conference last year.

The Philippines’ growing attractiveness as an investment destination has lured many British companies to tap investment opportunities in the country. At present, there are more than 200 British companies active in the Philippines, several of them have long been operating in the country. These include Shell, HSBC, Unilever, Standard Chartered, Marks and Spencer, Pru Life, de La Rue, GSK, AstraZeneca, Arup and Halcrow.

Philippine Daily Inquirer, 02 March 2015
By Amy R. Remo

Apec finance meet set

MANILA, Philippines–The country will host this week the second in a series of meetings related to the Asia Pacific Economic Cooperation (Apec), this time focusing on financial policies and programs for the 21-member economies.

In a statement on Sunday, Foreign Assistant Secretary Charles Jose, Apec spokesman, said the Department of Finance will host the series of meetings this week in Tagaytay City.

The meetings include the Asia Pacific Forum on Financial Inclusion March 3-4; Apec Public-Private Partnership Experts Advisory Panel, March 4; Apec Pacific Infrastructure Partnership Meeting, March 4; and Apec Finance and Central Bank Deputies Meeting, March 5-6.

The Tagaytay meetings come after last month’s Apec First Senior Official Meetings held at the Clark and Subic Free Port Zones.

“Under the Apec 2015 theme ‘Building Inclusive Economies, Building a Better World,’ these meetings are aimed at promoting discussion on various financial policies and programs affecting the 21 Apec member-economies as well as the regional network,” Jose said.

Delegates to the meetings are expected to tackle issues on financial inclusion, financial transparency and financial resiliency, he said.

These meetings, he added, are “targeted toward the development of a more integrated and harmonious financial network within the Asia Pacific region.”

Jose said the output of the discussions would be part of a roadmap to be called the Cebu Action Plan, which the Philippines would propose and launch during the Apec Finance Ministers Meeting to be held from Sept. 10 to 11 in Mactan, Cebu.

The Cebu Action Plan aims to envision an Apec community that is “more financially integrated, transparent and resilient,” Jose said.

Philippine Star, 02 March 2015
By Christine O. Avendaño

Completion of Daang Hari moved anew to June

MANILA, Philippines – The completion of the first public private partnership (PPP) project awarded by the Aquino administration hit another roadblock as the P2.01-billion Daang Hari-South Luzon Expressway (SLEX) link is likely to be opened in June instead of this month.

Rafael Yabut, undersecretary of the Department of Public Works and Highways (DPWH), confirmed in an interview that the completion of the PPP toll road has been moved further to June.

“We are now looking at June,” Yabut said.

The Daang Hari-SLEX link now known as the Muntinlupa–Cavite expressway (MCX) was the first PPP project auctioned off and awarded under the flagship infrastructure program of the Aquino administration. Ayala Corp. through AC Infrastructure Holdings Corp. bagged the toll road project.

It involves the construction of a new four-kilometer four-lane toll road, from the junction of Daang Reyna and Daang Hari in Las Piñas and Bacoor, Cavite to SLEX through the Susana Heights Interchange in Muntinlupa, traversing the New Bilibid Prison (NBP) Reservation.

The proposed link-road would use the Susana Heights Interchange as exit and entry from north and south of SLEX and would include the construction of a new bridge or widening of the existing bridge crossing SLEX as well as the expansion of the Susana Heights toll plaza.

The project was awarded to the Ayala Group in December 2011 and the project was supposed to be completed last June but was delayed due to problems with interconnection to SLEX.

The conglomerate was looking at completing the project last December after singing an agreement with South Luzon Tollway Corp. (SLTC) paving the way for the construction of the interchange linking the toll road to SLEX.

In another development, the Ayala Group together with three other conglomerates formed a consortium of four publicly-listed companies with a combined market capitalization of P1.62 trillion that submitted qualification documents for the P124-billion Laguna Lakeshore Expressway Dike Project (LLEDP).

Listed SM Prime Holdings Inc. of banking and mall magnate Henry Sy joined hands with property giant Ayala Land Inc. (ALI), Aboitiz Equity Ventures Inc. (AEV), and Megaworld Corp. of businessman Andrew Tan joined hands to vie for the largest PPP project so far rolled out by the Aquino administration.

The consortium of companies listed at the Philippine Stock Exchange (PSE) formed Trident Infrastructure and Development Corp. (TIDC) or Team Trident wherein each member would have a 25-percent interest.

The three other groups that submitted qualification documents to the DPWH last Friday were SMC’s San Miguel Holdings Corp., the Alloy-PAVI Hanshin LLED Consortium, and the Rainbow Consortium.

The Alloy-PAVI Hanshin LLED Consortium is composed of Malaysia’s MTD Group, Prime Asset Venture Inc. and Korea’s Hanshin Engineering Construction while the Rainbow Consortium consists of Rainbow Holdings Inc., PT Nusa Konstruksi Enginiring Tbk (NKE), The No. 4 Metallurgical Construction Company of China (4MCC), Shindong-Ah Construction Co. Ltd. (SCC), Director Operation and Maintenance by Rainbow Consortium, Korea Expressway Corp., Sta. Lucia Land Inc., Dong Myeong Engineering Consultants & Architecture Co. Ltd., and Kunhwa Engineering & Consulting Co. Ltd.

The Philippine Star, 02 March 2015
By Lawrence Agcaoili