World Bank eyes e-bidding for road projects

MANILA, Philippines - The World Bank (WB) and the Department of Public Works and Highways (DPWH) along with the private sector have embarked on a project that seeks to computerize the bidding process for government road projects in the next two years to prevent collusive practices from occurring.

According to Manolito Madrasto, executive director of the Philippine Constructors Association (PCA), the project aims to adopt electronic bidding by 2011.

“In two years time, we hope that submission of intent to bid can be done through the Internet so we don’t have to be physically present at the DPWH. Anywhere we are, we can bid and pay bonds through banks,” Madrasto said.

The computerization project is part of the $232 million-Second National Roads Improvement and Management Project (NRIMP2) funded by the WB.

The NRIMP2 would cover works and services for road upgrading, and widening, bridge replacement, and landslide rehabilitation, totaling approximately 450 kilometers of roads and about 1,000 meters of bridges on the arterial national road network.

Madrasto said they expect that more firms would be able to join bidding once the computerization is put in place.

He said the computer system is now being established at the DPWH.

Public Works Undersecretary Raul Asis said that at present they are running the system which determines the approved budget for the contract (ABC).

“Now we’re working at our database. It’s hard, but we have to have historical data. The computer will generate cost estimation and it will provide figures as to how much would be the ABC,” he said.

“Bidders will be allowed to submit bids, and after which, we will open the computer to find out what should be the project cost,” Asis said, adding this is part of the agency’s integrity strengthening efforts.

“We developed the module on how to do the electronic bidding,” he added.

DPWH Senior Undersecretary Manuel Bonoan said that part of the innovation of the bidding process is the post qualification.

The post-qualification procedure determines the contractor’s actual capability after bids are submitted.

It also encourages the participation of more bidders, an indicator of a viable bidding process.

Meanwhile, the DPWH has also partnered with the “Bantay Lansangan” – a movement composed of representatives from the Transparency and Accountability Network (TAN), road users, transport groups, and other stakeholders.

The group aims to monitor the procedures and process of ongoing and future projects of the WB and other lending institutions.

The DPWH has also invited representatives from the Catholic Bishops’ Conference of the Philippines as observers.

Last Jan. 15, the WB blacklisted three Filipino firms and four Chinese construction firms after finding that they had rigged bids for local road projects funded by the agency.

The institution also suspended the release of $33 million for the road projects.