Bidding for Aquino’s first PPP project deferred
June 21, 2011
By Darwin G. Amojelar Senior Reporter
THE Philippines’ first public-private partnership project would be delayed on account of the latest musical chairs in the Aquino administration.
The Department of Transportation and Communications (DOTC) has deferred “until further notice” the bidding for the operation and maintenance of the two mass rail systems in Metro Manila after a change in leadership at the agency.
Hernando Cabrera, corporate secretary of state-run Light Rail Transit Authority, told this reporter that the bid opening for the P14 billion O&M of Light Rail Transit Line 1 and Metro Rail Transit Line 3 was postponed to give way to a review of the project by the new DOTC leadership.
The LRT1-MRT3 O&M privatization is the first PPP project of the Aquino administration.
President Benigno Aquino 3rd recently appointed losing running-mate and former senator Manuel “Mar” Roxas as DOTC chief to replace Jose “Ping” de Jesus, who resigned for personal reasons.
Cabrera said the suspension of the bid opening for the LRT-MRT deal is meant to give a fresh mandate and guidance to the Special Bid and Awards Committee.
“Aside form the fact that Secretary Mar Roxas will need to review the project, he will need also to reconstitute the SBAC, since the current chairman and members will be both gone by July 1. The new members of the SBAC will need to study the project before deciding on anything,” Cabrera said.
The committee’s chairman, Ruben Reinoso, and a member, Glicerio Sicat, also tendered their resignation effective July 1.
Cabrera said there is no need to consult the bidders about the suspension of the bid opening, which was scheduled on July 11.
“Under the situation, DOTC or any bidder has any choice but to postpone until further notice,” he said.
The LRTA chief said it was up to Roxas and the new members of SBAC to schedule the bid opening.
Cabrera said the DOTC will issue the formal bid bulletin today.
Mitsubishi Corp. earlier requested an extension of the bid submission for another 150 days or until December 11.
Besides Mitsubishi, 15 other companies purchased bid documents, including other Japanese conglomerates, as well as Spanish companies.
Philippine companies that had expressed interest in the bidding were Metro Pacific Light Rail Corp., Ayala Corp., San Miguel Corp.’s Optimal Infrastructure Development Inc., Jorgman Planning & Development’t Corp.; the Romero group’s Ecorail Transport Services Inc., APT Global Inc., Kempal United Corp. and Abratique & Asso. Phil. Inc.
The DOTC had said the winning bidder should take over the project by January next year.
Source: http://www.manilatimes.net/business/bidding-for-aquino%E2%80%99s-first-ppp-project-deferred/
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