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Ayala Land offers better bid for P4B ITS-South terminal project

Chrisee Dela Paz

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Ayala Land offers better bid for P4B ITS-South terminal project
The Philippine government says it wants the winning concessionaire to start the construction of the terminal in the second quarter of 2016

MANILA, Philippines – Ayala Land, Incorporated (ALI) appeared poised to bag the P4-billion ($87.47-million) deal to build and operate an integrated transport hub near the Food Terminal Incorporated in Taguig City, after it offered to do so with a government subsidy lower than that sought by rival Filinvest Land, Incorporated.

At the opening of financial offers for the Integrated Transport System (ITS)-South terminal project on Tuesday, August 11, ALI was found seeking a P278-million ($6.04-million) annual grantor payment (AGP) – a fee the government will pay the winning concessionaire.

Filinvest Land, meanwhile, is asking for P1 billion ($21.74 million).

“The lowest AGP wins the deal, but this is still subject to evaluation,” Transportation Undersecretary for Legal Jose Perpetuo Lotilla told reporters on the sidelines of the bidding.

Lotilla explained that ALI and Filinvest Land had the option of proposing an AGP or a premium fee to the government. “The bid parameter (basis of the winning concessionaire) would be lowest government subsidy or highest premium fee. In this case, the bid parameter is the lowest AGP,” he said.

The winning bidder will design, construct, and operate for 35 years a terminal servicing Manila-bound commuters coming from Laguna and Batangas.

The project is the second of its kind to be auctioned off by the government.

Ayala claims early victory

Although ALI said in a disclosure to the local bourse that it already “won today the bid for the ITS-South terminal project,” the transportation department has yet to announce the winner for the public-private partnership (PPP) deal.

Lotilla, however, clarified that the transportation department has yet to evaluate ALI’s offer.

“Of course, we want to announce the winner as soon as possible. But the minutes will have to be prepared, the detailed evaluation has to take place, and the notice of award will have to be signed by the bids and awards committee and the secretary,” Lotilla told reporters.

He said, however, that his department is “optimistic” to issue the notice of award to the winning bidder “within August.”

The department said it hopes for the bidder to start the construction of ITS-South terminal project during the “second quarter of 2016, and start operations in December 2017.”

“This is an important project for us because we’re developing Arca South so this is very strategic,” said Alfonso Javier Reyes, head of transportation and power business of ALI.

“We expect the project to be financially and commercially viable for us. Contributions from this project will materialize when the project is finished and also when the busses start plying this route,” Reyes added.

Only two of the 4 qualified bidders submitted technical and financial bids on Friday, July 31, for the ITS-South terminal project.

Filinvest, ALI, Datem Incorporated, and MWM Terminals of Megawide Construction Corporation, and WM Property Management Incorporated made it to the short list of those qualified to bid for the contract.

But only Filinvest and ALI moved forward and submitted bids for the ITS deal of the transportation department.

Other ITS projects
MORE HUBS. The Transportation department is implementing two other integrated transport hubs in northern and southwestern Metro Manila. Left photo by Chrisee Dela Paz/Rappler

The transportation department is building integrated transport hubs in northern and southwestern Metro Manila.

It successfully auctioned off the ITS-Southwest terminal project, which will build a terminal for commuters in the Cavite area.

In January, MWM Terminals bagged the P2.5-billion ($54.65-million) ITS-Southwest terminal project deal, outdoing Filinvest Land’s offer.

Lotilla told reporters the department is still “finalizing preparatory works” for a third transport hub, the ITS-North terminal project. The department is studying a site near the Veterans Memorial Medical Center in Quezon City for the transport hub.

Apart from that site, other prospective locations are the former Manila Seedling Bank, the Philippine National Railways site in Caloocan City, and the University of the Philippines-Diliman campus.

The Aquino administration has awarded 10 PPP deals since 2010. –

$1 = P45.99

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