Ayala, Aboitiz call for speedy action on Cavite-Laguna expressway project

MANILA, Philippines – Team Orion, the 50-50 joint venture between Ayala’s AC infrastructure Holdings Inc. and Aboitiz Land said they would not take any legal action whatever Malacañang decides on the fate of the P35.4 billion ($790.36 million*) Cavite – Laguna expressway (CALAX) project undertaken by the Department of Public Works and Highways (DPWH).

Ayala and Aboitiz filed a motion urging President Benigno Aquino to decide whether it would accept or dismiss the appeal of diversified conglomerate San Miguel Corporation to reconsider the disqualification of Optimal Infrastructure Development Inc. (OIDI) from the CALAX bidding.

“However, should the President decide to grant OIDI’s appeal, Team Orion will respect such decision and commits to abide by it without legal recourse,” Team Orion said in a statement. 

Team Orion added that it hopes that OIDI will also extend Aquino the same courtesy should he decide to reject its appeal and uphold the DPWH decision. 

The 3-page motion was filed by the Gatmaytan Yap Patacsil Gutierrez & Protacio law office on behalf of Team Orion after Aquino made a pronouncement on October 22 that Malacañang was inclined to rebid the project due to the SMC appeal.

Team Orion, a 50-50 joint venture between conglomerate Ayala Corporation and listed Aboitiz Land Inc. emerged as the highest bidder for the project last June, with an offer to invest P11.66 billion ($260.33 million).

SMC’s Optimal Infrastructure Development Inc. was disqualified from the project due to a non-compliant bid security. It has appealed the matter before the Office of the President.

SMC’s OIDI reiterated its appeal to Malacañang to accept its P20.1 billion ($448.76 million) investment bid for the public-private partnership project.

“We reiterate our stance to respect whatever decision handed by the Office of the President even as we stand by our pending appeal for Malacañang to accept and declare our P20.1 billion bid ($448.76 million) as compliant and award the project to OIDI as the highest bidder,” the SMC unit said.

SMC’s OIDI committed to participate in case of a rebid – “whether the original terms of reference are altered or retained,” and said they would undertake the project if awarded.

SMC added that it would continue to support the major infrastructure projects being undertaken by the Aquino administration.

“OIDI will continue to join government biddings for vital infrastructure projects in line with the San Miguel Group’s commitment to nation-building,” the company said.

A planned rebid of the PPP would potentially turn off investors, analysts said.

The planned rebidding of CALAX could derail the momentum of the Aquino administration’s public private partnership (PPP) project, fund managers and think-tanks said. – Rappler.com

($1 = P44.79)