DOTC’S vow on MCIA rehab project Bid mess gone by month’s end

MANILA, Philippines — The Department of Transportation and Communication assured Cebuano legislators and other concerned parties that they will resolve the issues on the bidders for the P17.5-billion Mactan Cebu International Airport before this month ends.

This came after all nine representatives from Cebu pressed the DOTC during the congressional hearing yesterday for confirmation on when the issues will be resolved so that the airport rehabilitation project can be started.

The congressional hearing was done after all nine Cebuano representatives submitted a resolution last month, asking the Committee on Transportation “to conduct an investigation, in aid of legislation, on the complaints of conflict of interest and questionable financial capacity and other possible violations on qualification requirements against the highest financial bidder in the bidding for the MCIA terminal public-private partnership project.”

Cebu City north district Rep. Raul Del Mar and south district Rep. Rodrigo Abellanosa were present in the hearing, as well as all other Cebu legislators from first to sixth district; Samsam Gullas, Wilfredo Caminero, Gwendolyn Garcia, Benhur Salimbangon, Joseph Ace Durano and Luigi Quisumbing. Only Lapu-Lapu lone district Rep. Aileen Radaza was not present during the hearing, although she also signed the resolution. 

Del Mar pointed out yesterday that if the allegations against GMR- Megawide are true, they should be disqualified from the bidding.

 Last January 2, the Filinvest-Changi consortium, the second highest bidder, submitted a complaint against GMR-Megawide consortium, for allegedly violating PBAC bidding regulations.

According to the letter of FDC noting the bid rules provisions, a board member or partner of a bidder consortium member or its affiliates is prohibited from being directly involved in any capacity in the MCIA bid process for another bidder, consortium member and its affiliates.

The letter stated that GMR and Malaysia Airports Holding Berhad, another bidder, worked together in all of the former’s airport affiliates.

“These serious charges, if true, disqualifies GMR,” said Del Mar yesterday, adding “they do not deserve to win the project much less they do not deserve reserve to participate at all.”

However, Del Mar clarified that if the issues are not true, then the project should be awarded to GMR.

Abellanosa also raised to the committee information he got from the Department of Education on school building projects involving Megawide which are reportedly not yet finished and the completion date has allegedly been moved back thrice already.

But Rep. Edgar Erice of the second district of Caloocan reminded the committee that they cannot discuss specific details on issues about the bidders and their projects.

In fact, no specific discussion was made yesterday on the issues raised like the conflict of interest and the financial capability of the GMR-Megawide consortium to finance the multi-billion project.

Erice stated that they cannot discuss the specific issues against the bidders since this may affect the ongoing investigation of the PBAC.

“Meron tayo gusto mangyari pero dapat siguro pagtiwalaan natin yung ahensya ng pamahalaan na dapat gumawa ng kanilang trabaho kasi kung ma-pepressure po sila baka hindi tama yung maging decision nila,” Erice said.

However, Del Mar clarified that the reason why they only invited DOTC and officials of the PPP was because they did not want to put any of the bidders in a bad light considering that the investigation of the PBAC is still ongoing.

“We have not abused the committee’s time by limiting this initial hearing to requesting the DOTC, specially the PBAC committee. Surely there is a need for transparency and the people of Cebu want to know the real score,” he said.

Third district Rep. Gwendolyn Garcia also said that they have no intention of affecting the investigation of the PBAC.

“I do not wish to be construed as exerting influence in any way or manner but that my only wish is that there be a speedy resolution and decision by the PBAC,” she said, adding that the rehabilitation of the MCIA has long been overdue and has been in fact been proposed even when she was governor of Cebu for three terms.

Fifth district Rep. Joseph “Ace” Durano echoed the comments of his colleagues, stressing that they may proceed without discussing specific issues of the bidders but by going through the bidding process.

“I think it is possible that we don’t even talk about the qualification of the bidders but it is preferable that the satisfaction of the members from Congress hailing from Cebu that DOTC be given the opportunity to present what process they are undertaking and what tools they are using to assess the various bidders.”

Bidding process

Durano noted after his interpellation with the DOTC Undersecretary Perpetuo Lotilla and PPP Executive Director Cosette Canilao on the possible amendments that can be done in projects like the MCIA rehabilitation which is an important project for the provinces and countries it will serve.

Both Lotilla and Canilao, in response to queries of Durano, Garcia and other congressmen, explained the process the bidders go through from the bidding process, to the pre-qualification to post-qualification.

According to Lotilla, the process of the evaluation is on a “pass-fail” basis which means that all the bidders just need to meet the minimum performance standards sought by the PBAC based on the implementing rules and regulations of the BOT law.

Apparently, all the bidders were able to submit all the requirements of the PBAC, like the legal requirements which includes unsatisfactory performance reports from previous projects. They also need to submit technical qualification requirements where the design, engineering, operations and maintenance experience of the companies are indicated.

Most importantly, the consortiums are to submit the financial qualification requirements which is opened and evaluated only when they pass the pre-qualification. 

However, Durano noted that on a project as important as the MCIA rehabilitation, giving it to a bidder based on his financial report should not be the case.

“I think just from this exchange, the fact that we just require minimum compliance with technical requirements and having financial bid to have the most weight in deciding to whom the project would go to, that by itself, can be improved,” Durano said.

He explained that in important decisions like this project, a standard management tool requires a scorecard.

All the Cebuano legislators noted the importance in resolving the issues but they also stressed on the importance of doing it as soon as possible since it is a long-overdue project.

Lotilla explained that a process has to be followed, causing some delay. 

He assured the congressmen that they will do their best to complete everything and have a resolution by the end of the month.  —/BRP (FREEMAN)