'San Miguel's CALAX appeal bad for PPP'

Posted at 07/03/2014 9:16 PM

MANILA – The Management Association of the Philippines (MAP) warns that while San Miguel Corp. (SMC) has the right to appeal the Cavite-Laguna expressway (CALAX) bidding controversy to Malacanang, this could mean more appeals and delays in future public-private partnership (PPP) projects.

In a statement, MAP admits the appeal is legal and is actually based on administrative orders signed by President Benigno Aquino and the late President Cory Aquino, and an executive order signed by the late President Ferdinand Marcos.

SMC is protesting its disqualification from last month's bidding for the CALAX project due to what it says was a typo error in its bid.

But MAP said taking the protest to Malacanang politicizes the issue and may encourage participants in future biddings to take the same route.

"The bidding rules seem clear enough for the other bidders. Malacanang intervention politicizes the matter. Any losing bidder will try this route in the future. Delays will again be incurred and the project mired in controversy," MAP said in the statement.

In the controversial Cebu airport bidding, Filinvest didn't appeal beyond the Department of Transportation and Communications while in the Light Rail Transit-Line 1 controversy, SM went to court.