‘SM Cares’ about fairness, too

Those familiar with the Sys say the family has never been combative, preferring to always discuss issues in a low-key manner and finding a reasonable solution with fairness in mind. But it seems SM Prime Holdings under the Sy family is left with no choice but to take legal action against the DOTC and the Light Rail Transit Authority to stop government from transferring the “common station” project to Trinoma Mall in Quezon City.

It can be recalled that in 2007, the NEDA approved the “common station” as a priority infrastructure project to be located in front of the SM City North EDSA Mall. This was formally confirmed by NEDA and the Cabinet in July 2009. In September 2009, SM Prime, DOTC and LRTA entered into a Memorandum of Agreement stipulating that the LRT Line 1, MRT-3 and MRT-7 lines would be interconnected via a “common station” located in front of SM City North Edsa Mall.

The “common station” would also be named after the SM mall in exchange for a P200-million grant from SMPHI. In fact, bore piling in front of the SM mall was completed as early as 2010 in partial implementation of the project, with SM Prime continuously engaging in technical planning sessions with the LRTA.

But for some reason, the DOTC unilaterally put the project on hold without any explanation to SMPHI at all. Worse, Transportation officials made an announcement to the media about the possible relocation of the “common station” to Trinoma Mall – subsequently ignoring repeated inquiries from SMPHI regarding the supposed relocation.

“Suddenly, in complete breach and disregard of the terms of the MOA, and without any official notice to SMPHI despite the latter’s repeated formal inquiries, the DOTC unilaterally relocated the station to Trinoma and made the same a mere component of the recently bidded out LRT Line 1 Cavite Extension project,” SM Prime said.

Even the most patient and long-suffering would naturally feel offended at such shabby treatment in blatant disregard of the MOA. How can we attract international business investors if we keep showing that this is a country whose government unilaterally changes its mind, abrogating contracts and not honoring agreements – announcing the same to media even before informing the party concerned? Certainly, investors both international and local, not just SM, deserve better and fair treatment.

Solution to port and traffic congestion in Manila

It looks like not even the daytime truck ban imposed by the city government of Manila has been able to effectively address traffic and port congestion which has increased the prices of some goods by as much as five percent.  International shipping lines have also been complaining about the one-week waiting time at anchorage and other congestion issues that affect the delivery of goods. And though there are proposals to divert vessels to the ports of Batangas and Subic, this is not a lasting and full solution, according to Manila North Harbor Port CEO Richard Barclay.

“There are a myriad of issues such as increased overall logistical costs, imbalance of trade between exports and imports, distance and practicality and ultimately, freedom to choose a port of call must be carefully weighed and considered,” he said. For instance, an immediate and more long-term solution is to implement a policy of open and full utilization of Manila ports including the adjacent Manila North Harbor – the biggest at 52.5 hectares – which has adequate yard and berthing capacities as well as truck parking areas to accommodate shipments handled by international vessels.

This is a logical and logistical alternative as it allows breathing space to the port of Manila without affecting domestic cargo requirements, Barclay pointed out, with truck queuing avoided as well as reduction of costs due to the elimination of hustling to and from Manila North Harbor, the South Harbor and MICT.

CALAX bidding war: Disqualification of SMC

Bidders of the P34.5-billion Cavite-Laguna Expressway (CALAX) project are seeking the disqualification of SMC-led Optimal Infrastructure Development for allegedly violating rules on bid security. According to MPCALA Holdings, a unit under the Metro Pacific Group, Optimal did not comply with the 180-day validity period for bid security from the bidding date because its bid security expires on Nov. 25, 2014 – four days short of the 180-day validity period under the Terms of Reference which is until Nov. 29, 2014.

In his letter to DPWH USec and Special Bids and Awards Committee chair Rafael Yabut, MPCALA lawyer Christopher Lizo also noted that Optimal’s bid was non-compliant because it was not properly sealed, packaged and labeled – which should be enough grounds for its rejection, Lizo said.

In any bidding, compliance to the requirements and conditions specified under the Terms of Reference is important to everyone concerned because this will determine the capability of the bidder to follow the rules and eventually, adhere to the terms and conditions required in the implementation of the project. The DPWH SBAC should be transparent and see to it that all bidders are given fair treatment.

MOPC Fil-Canadian Night

The Manila Overseas Press Club in cooperation with the Canadian Chamber of Commerce will hold the Filipino-Canadian forum at the Manila Golf and Country Club today with Canadian Ambassador Neil Reeder as guest speaker. There has been increasing interest in Canada, with an estimated 800,000 Fil-Canadians now residing in the North American nation. Canada was one of the few economies that weathered the financial crisis with its banking system proclaimed as one of the healthiest in the world.  An open forum will follow the keynote speech by Ambassador Reeder.

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