Metro Pacific bags Cavite-Laguna project

MANILA, Philippines – The Department of Public Works and Highways (DPWH) issued a notice of award to infrastructure giant Metro Pacific Investments Corporation (MPIC) for the P55.5-billion ($1.23-billion) Cavite-Laguna expressway (CALAX) project.

DPWH Secretary Rogelio Singson led the issuance of notice of award on Monday, June 8, to MPIC’s MPCALA Holdings Incorporated after it emerged as the higher bidder during the rebidding of the public-private partnership toll road project.

“San Miguel Holdings and MPCALA Holdings both submitted very aggressive bids, so we would like to thank both of them for participating in this bidding. Unfortunately, we can only declare one winner and based on the resolution, MPCALA is the best complying bid for the project,” Singson said during the  ceremony.

Metro Pacific is controlled by business tycoon Manny V. Pangilinan.

Singson said he signed the notice of award June 5 as soon as he arrived from Tokyo, based on the recommendation of the agency’s Bids and Awards Committee (BAC) headed by DPWH Undersecretary Rafael Yabut.

Singson was with President Benigno Aquino III during his 4-day packed state visit to Japan from June 2-5.

DPWH Director Ariel Angeles said MPCALA Holdings emerged as the best complying bid with P27.3 billion ($603.69 million), edging the P22.2 billion bid submitted by San Miguel Holdings.

Malacañang ordered the DPWH to rebid the CALAX project after San Miguel Corporation questioned the disqualification of its unit Optimal Infrastructure Development Incorporated (OIDI) from the bidding in June 2014.

The tandem of conglomerate Ayala Corporation and listed Aboitiz Land Incorporated through Team Orion emerged as the highest bidder in June last year with P11.66 billion ($258.33 million). OIDI had a ghost bid of P20.105 billion ($445.37 million).

Winning bidder

The winning bidder has 20 days to complete post-award requirements, including the performance security of P700 million ($15.49 million) to replace the bid security, as well as the proof of reimbursement of $1.13 million of technical assistance fees for the transaction advisory services from the Project Development and Monitoring Facility (PDMF) of the PPP Center, Angeles said.

He added that MPCALA Holdings should also submit letters of intent and term sheets from reputable financial institutions, stating that they would provide sufficient credit facilities for the project.

The winning bidder would also have to shell out 20% of the total premium bid upon the signing of the concession agreement tentatively scheduled on July 14.

Ramoncito Fernandez, president of MPIC’s Metro Pacific Tollways Corporation (MPTC), said the company is pouring P23 billion ($509.26 million) for the construction cost and is eager to start the construction of the proposed toll road. He added that the projected civil cost will be funded via both debt and equity.

Specifically, MPTC is looking at sourcing about 80% of the total project cost from debt while 20% would come from equity based on the required ratio in the concession agreement, said Christopher Daniel Lizo, the company’s chief finance officer.

Fernandez added the company prefers to start the project in the Cavite side since it would link to its 13.5-kilometer Manila-Cavite toll expressway (Cavitex).

10^th PPP project

Groundbreaking for the CALAX project is scheduled in the first half of 2016. The project involves the financing, design and construction, operation and maintenance of the entire 4-lane, 44.63-kilometer closed-system tolled expressway connecting Cavitex and the South Luzon expressway (SLEX).

The CALAX project is the 10^th PPP project awarded by the Aquino administration since 2010 with a total indicative cost of P191.88 billion ($4.25 billion).

The other projects awarded by the current administration are:

• Daang Hari – South Luzon expressway link road
• PPP for School Infrastructure Project (PSIP) Phase 1
• PSIP-2
• Philippine Orthopedic Center
• Ninoy Aquino International Airport expressway
• Automated fare collection system project
• Mactan – Cebu international airport expansion project
• Light Rail Transit line 1 Cavite extension project
• Integrated Transport System (ITS) – Southwest Terminal – Rappler.com

$1 = P45.24