Metro Pacific group submits lone bid for LRT1 Cavite project
But DOTC says bid is 'non-compliant'
MANILA, Philippines - The Metro Pacific-led Light Rail Manila Consortium was the only group that submitted a bid for the LRT Line 1-Cavite extension project.
But the group's proposal was declared non-compliant by the Department of Transportation and Communications (DOTC).
Transportation Undersecretary Jose Perpetuo Lotilla said only the Light Rail Manila Consortium submitted its technical proposal, as three other groups withdrew from the process.
The Light Rail Manila Consortium had earlier included Ayala Corp.'s AC Infrastructure Holdings. But Ayala, in a disclosure to the stock exchange on Thursday, said it had decided not to participate in the consortium's bid.
The three groups who prequalified but did not make a bid were San Miguel’s SMC Infra Resources, Inc.; Consunji's DMCI Holdings, Inc.; and MTD-Samsung Consortium of Malaysia and South Korea.
Lotilla said Metro Pacific's proposal was non-compliant because it insisted on setting its own conditions in the contract. Under the bidding rules, the bidder must abide by the terms of reference.
Lotilla said the bids and awards committee would need to evaluate the conditions set by the Light Rail Manila consortium, and decide whether or not to declare a failed bidding. The decision will be out in a week's time.
"By early next week we will have a decision. Because it (Light Rail Manila's bid) is conditional there is really much of an option left. As of today it is non-compliant but the BAC has yet to assess what to do about it. They have certain conditions. At this point in time, let me just say that the government will have to assess the situation and perhaps reach a conclusion in the coming days as to how to proceed,” he said.
Lotilla noted that the DOTC was not informed by the consortium that Ayala had decided to drop out. "We have not been informed about the pull out of Ayala. We have not been given any official notice. Under the rules, it (the consortium) should be intact otherwise you have to prequalify again,” he stressed.
Asked why the three bidders withdrew, Lotilla said. "No, it is not the viability of the project. The bidders are commercial entities so their primary concern is financial. Maybe in their analysis, it does not make commercial sense for them or the risks are too great considering the amount of capital,” Lotilla said.
PPP Center executive director Cosette Canilao said the bidders were mainly concerned about the financial and commercial terms.
"It appears to be a qualified bid. They bid with certain conditions so the BAC will have to assess the options available to them whether to re-tender or to take other conditions," she said.
Th project is the Department of Transportation and Communications' first public-private partnership (PPP) project. It will extend the current LRT-1 line from its present end-station in Baclaran to parts of Parañaque, Las Piñas, and Cavite.
Of the project's P60 billion cost, the government is spending P30 billion for the acquisition of 39 new light rail vehicles for the project through an official development assistance loan from Japan International Cooperation Agency (JICA). The civil works cost, estimated at P30 billion, is being auctioned to the private sector. - With a report from Lois Calderon, ANC