SUMMARY
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MANILA, Philippines – Despite mixed reactions from think tanks and business groups, President Benigno Aquino III said he’s still inclined to favor a rebidding of the P35.4-billion ($788.08 million*) Cavite-Laguna expressway (CALAX) project.
Responding to the Philippine media delegation in the Asia-Pacific Economic Cooperation Chief Executive Officers (CEO) summit on Tuesday, November 11, in Beijing, Aquino reiterated that rebidding CALAX is the government’s obligation “to get the best deal for our people.”
The CALAX project – a major public-private partnership (PPP) under the Aquino administration – involves the financing, design, construction, operation, and maintenance of a 4-lane, 47-kilometer closed-system toll expressway connecting the South Luzon Expressway (SLEX) and the Cavite Expressway.
On October 22, Aquino said that he was inclined to favor a rebidding of CALAX “to get the best deal for the people.”
This drew negative reactions from fund managers and think-tanks. They said a planned rebid of the PPP would potentially turn off investors, as it could derail the momentum of the Aquino administration’s PPP project.
But the Philippine Chamber of Commerce and Industry (PCCI), headed by Filipino-Chinese businessman Alfredo Yao, said on November 4 that rebidding CALAX would maximize the “economic benefits” of the government from the public-private partnership (PPP).
Aquino said in Filipino that to be fair to all, and for the best bid to be presented, “it seems that rebidding is the only fair option.”
Team Orion, the 50-50 joint venture between Ayala’s AC infrastructure Holdings Inc. and Aboitiz Land’s accepted bid is P11.65 billion ($259.64 million).
San Miguel Corporation’s (SMC) Optimal Infrastructure Development Inc. submitted a P20.1 billion ($448 million) bid but was disqualified despite its substantial compliance with bidding rules, according to the PCCI.
PCCI said the CALAX rebidding could start from a floor price of P20.1 billion ($448 million) because the market value of the CALAX project has already been established by SMC’s disqualified offer.
Asked about the effect of rebidding on investor confidence in the Philippines, Aquino said that he would rather face criticism than deprive Filipinos of what is best for them.
“Eh, wala namang tatabi sa akin sa Plaza Miranda na sasabihing tama ‘yung ginawa [ko]. Wala namang tatanggap ng batikos kasabay ko. Mamimili na ako kung sino ang magagalit sa akin. Siguro maganda nang magalit sila (companies) kesa ‘yung taumbayan,” (No one will go with me to Plaza Miranda and say I did the right thing. No one would accept the criticism. I’d rather see the companies get angry with me than the Filipino people),” Aquino said.
On October 27, the tandem of Ayala and Aboitiz said they would not take any legal action whatever Malacañang decides on CALAX’s fate, a project undertaken by the Department of Public Works and Highways (DPWH). – Rappler.com
*($1 = P44.87)
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