Posts Tagged ‘public-private partnership’

DOTC eases LRT-1 Ext bid rules

The Philippine Star, 23 April 2014

By Lawrence Agcaoili

 

MANILA, Philippines – The Department of Transportation and Communications (DOTC) has relaxed its rules on the scheduled rebidding of the P65-billion Light Rail Transit line 1 Cavite extension project to attract more bidders.

DOTC undersecretary Jose Perpetuo Lotilla said the agency’s Special Bids and Awards Committee (SBAC) has revised the definition of “outstanding dispute” in the instruction to bidders.

“We just made it just to make sure that no bidders would be disqualified unnecessarily and only bidders involved in extreme cases would be disqualified,” Lotilla said.

He added that the revised rules would also allow other interested companies to join the bidding for the public private partnership (PPP) project.

“We want more companies to bid,” he said.

The DOTC has issued Special Bid Bulletin No. 12 -2014 containing the amended definition of “outstanding dispute” under the instruction to bidders for the project.

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Under the amended rules, “outstanding dispute” with government refers to any pending judicial, administrative or alternative dispute resolution proceeding, including suspension or blacklisting proceedings, between the bidder, any consortium member, their affiliates, or contractor proposed by the bidder or consortium, on the one hand, and the DOTC or the Light Rail Transit Authority (LRTA).

Under the original clause, “outstanding dispute” covers dispute with the government, any of its offices, agencies, or instrumentalities, or government-owned and controlled corporations (GOCCs).

The bulletin said the “outstanding dispute” covers transportation projects or contracts intended to provide a critical basic necessity and is of paramount public interest and importance.

The DOTC said the bulletin covers the bidder, any consortium member, or their affiliates that have committed a default or breach of contract, any representation, or

any warranty preventing the DOTC or LRTA from fully or timely complying with their statutory obligations.

The DOTC is set to integrate the bidding of the P65 billion LRT 1 Cavite extension project to integrate the proposed “common station” linking the LRT and the Metro Rail Transit line 3 (MRT3) along EDSA.

The DOTC has also decided to extend the deadline for the submission of bids by another month to May 28 instead of April 28.

The groups interested in joining the bidding include the tandem of infrastructure giant Metro Pacific Investments Corp. and conglomerate Ayala Corp. through the Light Rail Manila Consortium, construction giant DM Consunji Inc., Filipino-owned Megawide Construction Corp., Spanish-owned Globalvia Inversiones SAU, SMC Infra Resources Inc. of diversified conglomerate San Miguel Corp., Eco Rail Services Inc. of businessman Reghis Romero II, and Malaysian-owned MTD Philippines Inc.

 

DOTC relaxes dispute provision of LRT 1 Cavite Extension Project terms

InterAksyon, 23 April 2014

By Darwin G. Amojelar

 

MANILA – The Department of Transportation and Communications (DOTC) has relaxed a provision on disputes in the bidding terms of the P64.9 billion LRT 1 Cavite Extension Project.

In a special bid bulletin, DOTC said a bidder may be disqualified if it has any pending “judicial, administrative or alternative dispute resolution proceedings ” with DOTC and Light Rail Transit Authority (LRTA) involving any transportation project or contract.Ă‚

Previously, the provision bars bidders who have disputes with any government agency or government owned or controlled corporation (GOCC).

“We just made it to make sure na walang ma-disqualify or kung may ma-disqualify naman eh talagangextreme case,” Transport Undersecretary Jose Perpetuo Lotilla told reporters.Ă‚

The prospective bidders for the LRT1 Cavite Extension include Light Rail Manila Consortium, SMC Infra Resources Inc, Global via Inversiones S.A.U., Megawide Construction Corp, MTD Philippines Inc, DMCI Holdings Inc and Ecorail Services Inc.

DOTC set a May 28 deadline for bids. The bid parameter for the project will be the lowest capital subsidy or highest concession fee.

The department earlier announced that it would pursue a single-stage bidding, which means interested groups will submit their qualification documents simultaneously with their technical and financial proposals, thus doing away with a separate pre-qualification phase.  This will cut the bidding process by around two months.

This is the second time the government will auction off the LRT 1 Cavite Extension, one of the public-private partnership (PPP) projects of DOTC.

DOTC said more than 500,000 commuters everyday use LRT1, which runs from Baclaran in Pasay City to Roosevelt in Quezon City.Ă‚

The southern part of Metro Manila and neighboring Cavite province is home to nearly four million people.

 

DOTC relaxes bidding rules for LRT 1 extension project

Business Mirror, 23 April 2014

By Lorenz S. Marasigan

 

THE Department of Transportation and Communications (DOTC) has relaxed the bidding rules for the P64.9-billion Light Rail Transit (LRT) 1 Cavite Extension contract.

Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla said the rule barring potential investors with standing dispute with the government from joining the bidding for the largest public-private partnership project was revised to increase bidder participation.

“Outstanding dispute with government now refers to any pending judicial administrative or alternative dispute-resolution proceeding, including suspension or blacklisting proceedings between the bidder, any consortium member, their affiliates, or contractor proposed by the bidder or consortium on the other hand, and the DOTC and or the LRTA [LRT Authority] on the other in connection with any transportation project or contract of the DOTC or the LRTA or both, provided such project or contract is: intended to provide a critical basic necessity; and is of paramount public interest and importance; and where the bidder, any consortium member, or their affiliates has/have committed a default or breach of: contract any representation or any warranty which act prevents the DOTC or LRTA or both from fully or timely complying with their statutory obligations,” he said.

Lotilla explained that this would remove any unnecessary disqualification of bidders.

“We revised it to increase the number of bidders…we don’t want to unnecessarily disqualify bidders. We will just make sure that if there is a disqualification [issue], it would be an extreme case,” Lotilla added.

Bidding for the original contract—originally costing P60 billion prior to contract tweaks—was boycotted by bidders, leaving Metro Pacific Investments Corp. as the lone bidder last August, with partner Ayala Corp. and three other prequalified parties—San Miguel Corp., DMCI Holdings Inc. and Samsung-MTD Capital joint venture—backing out.

The new LRT 1 bidding rule has since attracted new players: SMC Infra Resources Inc., Spanish firm Globanvia Inversiones S.A.U., MTD Philippines  Inc., DMCI Holdings, Megawide Construction Corp., Ecorail Transport Services  Inc. and Light Rail Manila Consortium led by Metro Pacific and Ayala.

The government has set May 28 as the deadline for the submission of bids for the multibillion-peso project.

The project is expected to be completed by December 2018.

 

DOTC relaxes bidding rules for LRT extension project

ABS-CBN News, 23 April 2014

 

MANILA, Philippines – The rules for the scheduled rebidding of the P65 billion Light Rail Transit-Line 1 (LRT-1) Cavite extension project have been revised to attract more bidders, the Department of Transportation and Communications (DOTC) said Wednesday.

DOTC Usec. Jose Perpetuo Lotilla said there are changes in the definition of “outstanding dispute” in the instruction to bidders “to make sure that no bidders would be disqualified unnecessarily and only bidders involved in extreme cases would be disqualified.”

Lotilla added that the relaxed rules will also allow more companies interested in the public private partnership (PPP) project to join the bidding.

The revised rules, under Special Bid Bulletin No. 12 -2014, defined “outstanding dispute” with government as any pending judicial, administrative or alternative dispute resolution proceeding, including suspension or blacklisting proceedings, between the bidder, any consortium member, their affiliates, or contractor proposed by the bidder or consortium, on the one hand, and the DOTC or the Light Rail Transit Authority (LRTA).

The definition under the original clause covered any dispute with the national government, any of its offices, agencies, or instrumentalities, or government-owned and controlled corporations (GOCCs).

The special bid bulletin also said “outstanding dispute” covers transportation projects or contracts intended to provide a basic necessity and is of top public interest and importance.

It also covers the bidder, any consortium member, or their affiliates that have committed a default or breach of contract, any representation, or any warranty preventing the DOTC or LRTA from fully or timely complying with their statutory obligations.

The DOTC is set to integrate the bidding of the LRT-1 Cavite extension project and the proposed common station linking the LRT and the Metro Rail Transit-Line 3 (MRT-3).

The deadline for the submission of bids has been extended to May 28.

The interested groups are the tandem of Metro Pacific Investments Corp. and Ayala Corp., DM Consunji Inc., Megawide Construction Corp., San Miguel Corp.’s SMC Infra Resources Inc., Eco Rail Services Inc., Globalvia Inversiones SAU, and MTD Philippines Inc.

 

Consortium to start Mactan-Cebu Airport operations by October

Manila Bulletin, 23 April 2014 / Yahoo, 24 April 2014

By Malou M. Mozo

 

Mactan, Cebu – The consortium of GMR Airports Inc. and Megawide Construction Corp. (GMR-Megawide), which won the bid to modernize the Mactan-Cebu International Airport (MCIA) will begin management and operation of the airport in October, 2014.

“As agreed, GMR-Megawide will now operate and manage the MCIA 180 days after the signing of the concession agreement,” Mactan Cebu International Airport Authority (MCIAA) General Manager Nigel Paul Villarete said in an exclusive interview with Manila Bulletin yesterday. “At the moment, we are in a transition phase until the actual turnover of the MCIA this October.”

Villarete said, “The MCIAA will work hand-in-hand with the consortium to make sure that the terms under the concession agreement is met.”

To recall, late last Tuesday, GMR-Megawide paid P14.4 billion as upfront premium to the MCIAA after it was awarded the airport expansion project, which is the first airport Public-Private Partnership undertaking to be awarded under the current Aquino administration.

Following the receipt of payment, the Department of Transportation and Communications (DOTC) and the MCIAA signed the Concession Agreement with the consortium.

In the international bidding process which was culminated in December 2013, the GMR-Megawide emerged as the highest bidder for the MCIA project after submitting a bid of P14.4 billion. DOTC formally issued the GMR-Megawide consortium the Letter of Award on April 4, 2014.

Following the signing of the Concessions Agreement, the consortium has reiterated its pledge to expend all efforts in coming up with a world-class facility that Cebuanos and the entire country would be proud of.

The project is aimed at modernizing the second largest aviation hub in the Philippines with the building of a new world-class international passenger terminal building capable of handling eight million passengers annually, while renovating the existing terminal building which will be dedicated solely for domestic passengers, with a 4.5 million-passenger capacity.

Construction of the new international passenger terminal is targeted to start in 2015, and is eyed for completion by 2018; the renovation of the existing passenger terminal is set to begin by 2019.

 

P14.4B upfront premium paid for airport project

The Freeman, 23 April 2014

By Gregg M. Rubio

 

CEBU, Philippines –  The GMR-Megawide Consortium yesterday paid P14.4 billion to the Mactan-Cebu International Airport Authority as upfront premium for the airport expansion project, which has been awarded to the consortium.

The Department of Transportation and Communications and the MCIAA signed the Concession Agreement with GMR-Megawide following receipt of the payment.

Jose Perpetuo Lotilla, DOTC’s Bids and Awards Committee  chairman and undersecretary for legal affairs, led government officials in signing the agreement.

“The 25-year Concession Agreement was signed following the consortium’s fulfillment of all post-award requirements, including payment to the Mactan-Cebu International Airport Authority of the P14.4-billion premium it offered as its financial bid,” DOTC said in a statement.

The consortium claimed it fulfilled its first major obligation ahead of schedule and reinforces its commitment towards the project.

“By making the upfront payment of P14.4 billion within the stipulated time we have clearly demonstrated our credentials and capabilities to take up this prestigious project. This is just the first step in our endeavor to transform the Mactan Cebu International Airport into a world class airport destination,” said Michael Cosiquien, chairman and chief executive officer of  Megawide Construction Corporation, and Srinivas Bommidala, chairman, Airports Sector of GMR Infrastructure, in a joint statement.

“We will channel our efforts to making MCIA an efficient passenger-oriented and commercially sustainable airport that will truly reflect the culture and heritage of Cebuanos and will make a significant contribution to the economy of Cebu. We wish to place on record our appreciation for DOTC on concluding a fair and transparent bid process, conducted in a highly professional manner,” the statement reads.

MCIAA is set to turn over airport operations and maintenance to GMR-Megawide in the next six months or by October this year.

The consortium is expected to begin construction of the new passenger terminal building by January 2015. Construction is scheduled to be completed in three years or by January 2018.

The new MCIA terminal will be for international flights and will be connected to the existing passenger terminal building, which will also be fully renovated by January 2019. Once renovated, the existing passenger terminal will cater exclusively to domestic passengers.

The signing of the agreement followed the expiration of  the 15-day period to file any motion for reconsideration contesting the award.

In the international bidding process, which culminated in December 2013, GMR-Megawide emerged as the highest bidder for the MCIA project after submitting a bid of  P14.4 billion. DOTC formally issued the Letter of Award to the Consortium on April 4, 2014.

The Consortium’s proposed design for the new terminal at MCIA is a modern expression of traditional Filipino architecture and imbibes the cultural ethos of Cebu without sacrificing efficiency.  (FREEMAN)

 

DOTC, GMR-Megawide ink Mactan airport deal

Philippine Daily Inquirer, 23 April 2014

By Miguel R. Camus

 

Winning consortium pays cash premium of P14.4B

The Department of Transportation and Communications on Tuesday signed the contract with the Filipino-Indian consortium that bagged the Mactan-Cebu International Airport public private partnership deal, paving the way for the construction of a brand new terminal by 2018.

The concession agreement was signed after winning consortium GMR Infrastructure of India and Megawide Construction Corp. completed the post-award requirements, including the payment yesterday morning of a P14.4-billion cash “premium” days ahead of the April 24 deadline.

The move marks the second PPP contract-signing for DOTC, which had been criticized for the slow pace in rolling out massive infrastructure deals.

The Cebu airport deal still faces challenges though as the award is being contested by Sen. Sergio Osmeña III in the Supreme Court after the Cebuano politician questioned GMR’s capability to undertake the project.

With the concession agreement signed, events have overtaken the filing made by Osmeña, which came a day before GMR-Megawide was awarded the project last April 4.

Transportation undersecretary Jose Lotilla noted Tuesday that the filing may, thus, need to be revised.

“The concession agreement was signed,” Lotilla said. “It depends now on what they [Osmeña’s group] are trying to restrain.”

GMR-Megawide, meanwhile, said they would proceed with the project barring any order from the High Court.

Megawide chair and CEO Michael Cosiquien said the project would turn Cebu’s airport into a word-class facility that would serve as a regional hub.

Apart from new airport facilities, Cosiquien said the GMR-Megawide consortium would develop an adjacent six-hectare property into a retail complex and hotel, but he declined to elaborate.

“This is really a project all of us can be proud of,” Cosiquien said in a prepared speech during the signing.

Referring to the DOTC, he added that the agency had “restored our faith in government by conducting a fair and transparent bid and awarding process.”

The P14.4-billion premium GMR-Megawide paid comes on top of the P17.5 billion to be mainly spent on a new passenger terminal, which would help the congested airport handle about 25 million passengers annually by the end of the 25-year concession period.

Mactan-Cebu Airport, which was meant to handle 4.5 million per year, was visited by close to seven million passengers in 2013, government data showed.

The consortium would mainly earn from the commercial development and terminal fees, which would still be regulated by the government.

GMR-Megawide, whose offer topped six other bidders last Dec. 12, was expected to assume operations of the Cebu airport by October this year, the DOTC said in a separate statement Tuesday.