MANILA, Philippines - The Department of Transportation and Communications (DOTC) is set to revise the terms of the Aquino administration’s biggest infrastructure project after only one prequalified bidder submitted an offer for the P60-billion Light Rail Transit line 1 (LRT1) extension project.
Transportation Secretary Joseph Emilio Abaya said in a statement that the agency’s bids and awards committee (BAC) is looking at extending the bidding process to address the concerns of the prequalified bidders that withdrew their participation.
“The BAC is looking at the possibility of extending the bidding process and reevaluating the existing terms to further address the commercial issues raised by the pre-qualified bidders,†Abaya stressed.
The DOTC chief issued the statement after only one of the four prequalified bidders submitted a bid beating the Aug. 15 deadline. All other three prequalified bidders backed out from the bidding process.
The Light Rail Manila Consortium managed to beat yesterday’s deadline and submitted its technical and financial proposals. The consortium is led by First Pacific’s infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) and Ayala Corp. through AC Infrastructure Holdings Corp. with a combined stake of 45 percent.
However, the AC Infrastructure decided not to participate in the LRT1 bidding.
Other bidders that were prequalified last November including the MTD-Samsung Group, San Miguel Infrastructure Resources Inc., and DMCI Holdings Inc. withdrew their participation in the bidding process.
Abaya said the committee would decide within one week on whether or not to declare a failed bidding after evaluating the non-compliant bid of Light Rail Manila and whether to revise the terms of the project.
He pointed out that the primary concern of the agency is to make sure that construction works of the proposed LRT1 extension all the way to Niog in Bacoor, Cavite would start on time.
“The evaluation would be completed in a week, after which next steps in the bidding process will be announced. The goal of the evaluation and the next steps is to ensure that the construction of the LRT1 Cavite extension will proceed in the second half of 2014, as scheduled,†he added.
DOTC undersecretary Jose Perpetuo Lotilla told reporters immediately after Thursday’s bidding that the BAC would evaluate the conditions set by the Light Rail Manila consortium and come up with a decision next week whether or not to declare a failed bidding.
“By early next week we will have a decision. Because it (the bid of Light Rail Manila) is conditional there is really much of an option left. As it is 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 added.
Lotilla, who also heads the agency’s BAC, said the agency was at a lost why the three prequalified bidders withdrew from the proceedings and why the lone bidder submitted a non-compliant bid.