Deep pockets needed for bidders of P123-B Lakeshore project

MANILA, Philippines - Prospective bidders for the P123-billion Laguna Lakeshore Expressway Dike Project (LLEDP) are required to have deep pockets as the government has set the minimum financial capability requirements at P64.9 billion to qualify to bid for the Aquino administration’s largest Public Private Partnership (PPP) project.

In a bid bulletin, DPWH Undersecretary Rafael Yabut stated the revised Instruction to Bidders (ITB).

The guidelines require the prospective bidder or a related entity to have a net worth of at least P13 billion and have access to credit amounting to P51.9 billion to qualify to bid for the project.

The DPWH stated in the guidelines that the net worth to be submitted by the bidders must be supported by the latest audited financial statements dated not earlier than June 30 this year.

On the access to credit, the agency said bidders must show letters from its potential lenders stating that they are willing to lend at least P51.9 billion for the LLEDP.

The DPWH earlier extended the submission of qualification documents for the PPP project to Jan. 14, 2015  instead of Oct. 16 this year to give bidders more time to form competitive groups.

 Prequalified bidders would then be notified on Feb. 8, 2015  and the submission of bid proposals is scheduled on July 6. Only prequalified bidders would be allowed to submit bid proposals.

The DPWH intends to issue the Notice of Award on Aug. 4 paving the way for the signing of the concession agreement on Sept. 4.

A total of 22 companies have expressed interest in Aquino administration’s largest PPP project. These are JG Summit Holdings Inc., San Miguel Corp. (SMC), the Lucio Tan Group, Ayala Land Inc., Metro Pacific Investments Corp. (MPIC), Megaworld Corp., GT Capital Holdings Inc., and Filinvest Land Inc.

The National Economic and Development Authority (NEDA) approved the project last June 19.

The LLEDP involves the construction of a 47-kilometer flood control dike on top of which will be a high speed six-lane expressway starting from Taguig, passes through Muntinlupa and Calamba, and ends in Los Baños at its boundary with Bay, Laguna.

Likewise, the PPP project also includes the reclamation of about 700 hectares of foreshore and offshore areas, west of the dike, in Taguig and Muntinlupa.