Chinese firm may bag World Bank road deal

MANILA, Philippines - A Chinese state-owned firm is currently the lead bidder in the first project under the World Bank-funded National Road Improvement and Monitoring Program (NRIMP) Phase 2.

An official of the Department of Public Works and Highways (DWPH) said yesterday the Chinese firm posted a bid 22 percent below the approved budget for the contract (ABC), despite the recent inclusion of four Chinese companies in the World Bank’s blacklisted firms for alleged involvement in bid-rigging anomalies in NRIMP Phase 1.

DPWH Undersecretary for Mindanao Romeo Momo said that it is possible that a Chinese firm would be the winner in the first project to be bid out under the NRIMP 2. He did not, however, identify the Chinese firm.

Momo gave assurances that the frontrunner in the P978-million Improvement and Rehabilitation of the Marcos Highway Project in Antipolo City is not among the four Chinese firms blacklisted by the WB.

The WB blacklisted three Filipino firms, one contractor and four construction firms. They include the E.C. de Luna Construction Corp. and its proprietor Eduardo de Luna, which has been barred permanently from participating in any bidding for WB-funded projects; Cavite Ideal International Construction and Development Corp. (Cavdeal) and CM Pancho Construction Inc., which were barred by the WB for four years.

The Chinese firms China Road and Bridge Corp., was barred for eight years; China State Construction Corp., and China Wu Yi Co. Ltd., for six years; and China Geo-Engineering Corp. for five years.

“We have six bidders for the project and it seems the Chinese firm offered the lowest bid, about 22 percent below the ABC. This is about a P200-million dive from the ABC,” Momo said.

While the Chinese firm, at first glance, may have the financial capability, experience and manpower resources to undertake the project, Momo said it is still not a guarantee that they will be the winning bidder since they still need to check it out with the Chinese Embassy.

“They have the experience but the problem is that the projects they cited in their bid were constructed in China, they have not yet done any project in the Philippines… So we need to write to the Chinese Embassy for authentication of these projects to prove that the projects were completed and accepted by the owners in China… This is a Chinese company, state-owned,” Momo explained.

The DPWH Technical Working Group is already in the process of drafting a letter to be sent to the Chinese Embassy.

Momo, chairman of the NRIMP phase 2 bids and awards committee, is hoping to hear from the Chinese government in a few weeks.

It is only after they receive the reply that the DPWH would be able to come out with its findings.

He said the DPWH would be stricter in implementing security measures for projects under the NRIMP 2.

The Independent Procurement Evaluators (IPE) would keep a close watch on developments in the bidding, but they would not interfere with the decision.

The IPE would give their observations in their report to the WB.

Some organizations such as representatives from the Office of the Ombudsman, Bantay Lansangan, Philippine Contractors Association, and the National Constructors Association of the Philippines are also active observers in the bidding process.