Urgent action needed

The monstrous traffic in Metro Manila can only be resolved by building new and alternative major thoroughfares. The sight of traffic jams is not only ugly; it is a grim reminder that things are only going to get worse unless something drastic is done, and fast.

The traffic build-ups are also partly (some would say largely) caused by huge trucks and trailers that move goods to and from the ports of Manila.

If there was an efficient road that would link the North Luzon Expressway (NLEX) and the South Luzon Expressway, (SLEX) other than the already clogged highways and roads of Metro Manila, wouldn’t this encourage the movement of cargoes or delivery of goods to and from the alternate ports in Batangas, at the Clark freeport in Pampanga and the Subic freeport in Zambales?

There are actually two parallel projects that are hoping to address all these. The connector road of the San Miguel Corp. (SMC)-Citra group called Skyway Stage 3 is underway, while that of the Metro Pacific Investment Group (MPIC) is still awaiting final government approval.

One tangible benefit of these connector road projects is the unrestricted flow of cargo trucks from Manila’s Port Area to Northern and Southern Luzon, thus easing the truck ban concerns.

It would also improve transport logistics as a result of the more efficient movement of cargoes, roll-on, roll-off (RORO) vessels, and passengers in and out of the ports located in Manila, and would reduce travel time from NLEX to SLEX to only 15 to 20 minutes.

According to studies, the NLEX-SLEX connector road project of MPIC’s Metro Pacific Tollway Corp. (MPTC) would decongest EDSA, C-5, and other roads in Metro Manila’s inner cities because these choked arteries would be freed of heavy vehicles traveling to and from the Port Area.

A travel efficiency analysis showed that the value of time saved ranged from 69 percent to 71 percent and savings from vehicle operating costs from 17 percent to 32 percent. 

MPTC’s P25.5-billion NLEX-SLEX road project was conditionally approved by the government two years ago. It involves the construction of a 13.4-kilometer four-lane elevated expressway via the PNR tracks, with three exits to connect NLEX with SLEX. This MPTC project component is worth P18 billion.

The National Economic and Development Authority (NEDA), the Metropolitan Manila Development Authority (MMDA) and the local governments of Makati, Manila and Caloocan have all endorsed the project.

Unfortunately, the project has suffered one delay after another.

First, MPTC was told by the government that the project would not undergo Swiss Challenge which was the usual route for unsolicited proposals, and that MPTC could use instead its existing joint venture agreement with the Philippine National Construction Co. (PNCC) in implementing the project.  It was the DOTC that recommended that MPTC pursue the JV route.

Then here comes the Department of Justice saying that NEDA erred in approving the joint venture and that the project should be subjected to a Swiss Challenge, which was actually what MPTC originally intended.

Under the Swiss Challenge mode, other bidders would be allowed to submit proposals but MPTC has the right to match these offers.

However, in the last NEDA meeting, President Aquino deferred action on the Swiss Challenge route and instead wanted the DOJ to first clarify why the project could not be processed via a JV arrangement.

Last weekend, Public Works Secretary Rogelio Singson said that the latest legal review by the government concluded that the project should revert back to an unsolicited proposal.

Which is which?

Well positioned

Publicly listed multinational seafood giant Alliance Select Foods Int’l (ASFI) recently announced a reorganization of its board and key appointments its top management team.

Company founder and incumbent president Jonathan Dee, who established the firm as Alliance Tuna in 2003, will assume the position of chairman of the Board as he passes the baton to Raymond See.

With these changes, Dee said that the company is prepared and better poised to address greater international competition.

George Sycip, formerly chairman, will now serve as vice-chairman in place of Alvin Dee who will continue to advise the company as shareholder.

Dee will be replaced as director by Raymond See, the new president and chief executive officer.

As the new chairman, Dee can be expected to continue to pursue the company’s exponential growth potential.

The changes in the board and management, could be misconstrued as possibly resulting from an intra-corporate feud they had earlier this year with some foreign shareholder, but the new board and management has assured that the timing was purely coincidental.

ASFI is primarily engaged in the manufacturing, canning, importing and exporting of food products such as marine, aquaculture and other processed seafood.

It has acquired a number of businesses, including a 40 percent stake in FDCP, Inc., a can-making company; a tuna cannery in Indonesia; leading US salmon processor Spence & Co. Ltd.; and an 80% stake in Akaroa Salmon New Zealand Ltd.

Alliance Select’s export markets include Europe, North America, Asia, Africa and South America. Its main product is canned tuna and supplies hundreds of brand-name companies across 60 countries worldwide.

Appeal bond

A Lucena City Regional Trial Court has ordered the Department of Public Works and Highways (DPWH) regional office in Quezon province to accept the appeal bond being tendered by a construction company for a multi-million government road project in the province.

RTC Branch 53 Judge Dennis Galahad Orendain directed DPWH district engineer Salvador Salvana, et.al.  to accept the bond amounting to P256,917.75 being posted by R.C. Talaga Construction on October 2013.

 Orendain also ordered the respondents to recognize the protest filed by the construction company in accordance with the provision of R.A. 9184 or the government procurement law.

The controversy stemmed from a protest filed by RC Talaga after the DPWH bids and award committee (BAC) awarded the P34.26-million Famy-Real-Dinahican Port Road preventive maintenance project to another construction firm on Dec. 4, 2013. The other firm was considered disqualified for submitting prohibited bid documents.

 RC Talaga described the proceedings as highly irregular as it was postponed three times.

When it was finally bidded out, RC Talaga’s bid in the amount of P27.36 million was first read. Arcinue Construction then submitted a bid of P32.56 million for the project. After finding that Arcinue bidded higher, the BAC opened another bid envelope submitted by Arcinue containing the same bid amount but with an offer of 20 percent discount.

 RC Tagala said the bids submitted by Arcinue are “alternative” bids specifically prohibited by RA 9184.

 RC Tagala filed a protest but when it tried to post the required protest bond,  respondents refused to accept the amount, forcing the petitioner to file the petition for mandamus.

 Respondents said that the petition is already moot considering that they already awarded the project and has already paid Arcinue.

 However, lawyer Redentor Viaje, counsel of RC Talaga Construction, said that the action cannot be mooted by the award or payments since concerned government officials can be held criminally and civilly liable for the unrealized profits of the prevailing bidder.

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