The Market Monitor Minding the Nation's Business
By Weng C. Ocfemia
Another public-private partnership (PPP) project of the Aquino administration suffered a big blow after bidders snubbed the bidding for the P122.8-billion Laguna Lakeshore Expressway-Dike Project (LLEDP), which was scheduled on March 28 at the Department of Public Works and Highways office in Manila’s Port Area.
The three prequalified bidders—Team Trident, made up of Ayala Land Inc., SM Prime Holdings Inc., Aboitiz Equity Ventures Inc., and Megaworld Corp; San Miguel Corp.; and the Alloy Pavi Hanshin LLEDP Consortium, composed of Malaysia’s MTD Group, South Korea’s Hanshin and the family of former Sen. Manuel Villar Jr.—did not submit offers, citing the high risk of the project due to the lack of a guarantee over the road connectivity to the C5 and C6 roads, which has a 37-year concession period.
They also cited concern over a geologist manifestation that, if a large earthquake on the West Marikina Valley Fault were to break the planned dike, Metro Manila could experience massive flooding.
The LLEDP is a 47-kilometer toll road from Taguig City in Metro Manila to Los Baños in Laguna province that will be on top of a flood-control dike. It was envisioned to ease traffic congestion and mitigate flooding in coastal areas along Laguna Lake. The project will also include the reclamation of 700 hectares for mixed-use communities.
Meanwhile, despite the postponement of the bid submission for seven PPP projects, the government is still pushing to award these projects by June 30, 2016. Recently, the Department of Justice (DOJ) moved the bid submission for its regional prison project from Mar. 22 to Apr. 20. The Department of Transportation and Communications (DOTC) also moved the bid-submission deadline for five regional airport projects and the Davao seaport project from Mar. 28 to an unspecified date. These projects are now in the advanced stages of the bidding process.
“The DOJ and DOTC have worked hard to bring the procurement process very close to completion. The PPP Center is ready to help the DOJ and DOTC make the final push to complete the process by June 30,” PPP Center Executive Director Andre Palacios said.
He expressed concern about the postponements, citing strong reasons for continuing the bidding for the seven projects.
“We are mindful that postponement in procurement will mean delay in delivery of public services. Four factors, together, strongly justify completing the bidding for the DOJ and DOTC projects. First, the projects were properly reviewed and approved in 2014. Second, they have been going through a fair, transparent and credible procurement process for over a year now. Third, the government has complied with all legal requirements, and has spent valuable resources to develop, approve and procure the projects. Fourth, there is genuine competition among serious bidders, both local and foreign, which will produce the best deal for the government,” the PPP Center head said.
Palacios emphasized the need to award these PPP projects, so that the construction of better public infrastructure may commence in the next administration.
Bilibid inmates live in overcrowded, dehumanizing conditions. They urgently need facilities conducive to their reformation.
A modern seaport in Davao will allow Mindanao farm products to reach the global market. Further, in a few years, air passengers will experience Ninoy Aquino International Airport-type congestion in the Iloilo, Bacolod, Bohol, Davao and Laguindingan airports. Expanding these regional airports is necessary to avoid the expected congestion.
PPP projects are not covered by the election ban, which will last until May 8. The Commission on Elections en banc confirmed this in its resolution issued on Jan. 19.