Rivals seek disqualification of SMC in CALAX project

MANILA, Philippines - The three prequalified bidders for the P35.4-billion Cavite – Laguna Expressway (CALAX) project are asking the Department of Public Works and Highways (DPWH) to disqualify diversified conglomerate San Miguel Corp. (SMC) for various violations in the bidding rules.

Malaysia ’s Alloy MTD Philippines, Team “Orion” of conglomerate Ayala Corp. and Aboitiz Group as well as MPCALA Holdings Inc. of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) manifested their objection to the bid submitted by SMC’s Optimal Infrastructure Development Inc.

MTD Philippines president Isaac David said the company sent a manifestation to the DPWH Special Bids and Awards Committee (SBAC) concerning the failure of the SMC unit to comply with the requirements of the bidding.

“No, we didn’t complain but sent a letter in compliance with DPWH’s request for a written manifestation. We leave it to the best judgement of the SBAC,” David said in a text message.

For one, David said SMC’s Optimal Infrastructure failed to comply with the validity period for the bid security. “I was informed that the validity of the bid security is four days short of the 180 calendar days from date of bidding,” he said.

On the other hand, MPCALA Holdings authorized representative Christopher Daniel Lizo wrote a letter to DPWH Undersecretary and SBAC chairman Rafael Yabut objecting to the bid proposal of SMC’s Optimal Infrastructure.

Lizo said Section 5.1 (c) and 6.1 of the Instruction to Bidders state that bid security must be in the form of Annex BL-3 without modification whereby bids without the prescribed bid security shall be automatically rejected.

He pointed out that Section 7.1 (b) of the implementing rules and regulations of the Build Operate Transfer (BOT) law or RA 7718 provides that non-compliance to the period prescribed for validity of the bid security shall be a ground for the automatic rejection of a bid.

In the case of the public private partnership (PPP) project, the DPWH required a validity period of at least 180 days from the bidding date or June 2 until Nov. 29.

“The bid security of Optimal Infrastructure shall expire on Nov. 25., indicating that the bid security of Optimal Infrastructure is only valid and effective for 176 days from the bid proposal submission date,” Lizo stated in the letter dated June 3.

He pointed out that the agency’s SBAC should automatically disqualify the entire bid of the SMC unit and return the technical and financial proposals of the company.

Aside from non-compliance to the bid security, MPCALA said the bid submitted by Optimal Infrastructure was not properly packaged, sealed, and labelled in accordance with the bidding requirements.

“In the spirit of fairness, we trust that the SBAC shall consider the foregoing grounds in finding that there are sufficient bases to merit the rejection of the entire bid proposal of Optimal Infrastructure for the Cavite Laguna expressway,” Lizo said.