PHL considers seeking fresh bids for P35.3-B toll road project

President Benigno Aquino III said his government is considering reopening bidding for the $35.3-billion Cavite-Laguna Expressway toll road project after bidder San Miguel Corp. questioned the outcome of the tender held in June.

 

"I'm inclined to think that a re-bid would be the proper course of action on this particular issue," Aquino said on Wednesday at an annual forum with foreign correspondents in the capital.

 

San Miguel, the country's most diversified conglomerate, would submit a bid if a re-tender is held, its president, Ramon Ang, told Reuters by text message after Aquino's remarks.

 

San Miguel was barred in June from bidding for the biggest road public-private partnership (PPP) deal to date, known as CALAX, after it submitted a standby letter of credit for the project that was shorter than the required 180 days.

 

A special committee of the Department of Public Works and Highways disqualified San Miguel for that reason, despite the company having put in the highest bid for the toll road project by far – a P20.1 billion premium offer beyond the $35.3 billion project cost. The next highest premium offered was 11.7 billion, from Ayala Corp. and Aboitiz Equity Ventures Inc.

 

"If we accept the winning bid at this time, when there is an allegation that there was a much superior bid, then we will have to explain to the people the 9 billion (peso) difference that we forego," Aquino said.

 

San Miguel had sought a review by Aquino's office of its disqualification, despite the tandem of Ayala and Aboitiz saying the bidding process must be respected. Aquino's uncle Eduardo Cojuangco is the chairman of San Miguel, although their families have had political differences in the past.

 

The project is a 35-year state contract to finance, construct and operate a 47-kilometer four-lane toll road connecting two growth areas south of the capital that is expected to cost P35.3 billion.

 

Ayala has already committed P6.7 billion as equity investment for CALAX, Managing Director John Eric Francia told Reuters on Saturday.

 

Since launching the PPP program in 2010, the government has awarded eight infrastructure projects worth around P133 billion. They consist of toll roads, schools, an automated fare collection system, a railroad and a hospital.

 

On Friday, Aquino gave authorities the go-ahead to offer for tender P165.6 billion worth of new infrastructure projects under the PPP program in line with efforts to upgrade ageing roads, airports and ports. – Reuters