4 firms prequalify for classroom PPP bidding

MANILA, Philippines – Four companies prequalified to bid for the Public-Private Partnership (PPP) for School Infrastructure Project (PSIP) Phase II on Wednesday, April 17. 

The project involves the designing, financing, and constructing of 10,679 classrooms, including furniture, fixtures and toilets, in 5,033 public schools in nationwide.

The 4 companies are:

• Megawide
• BF Corporation
• DM Wenceslao & Associates
• Vicente T. Lao Constructors/BSP & Co. Inc.

A mock-up test will be conducted to determine the capability of the firms to undertake the project. This will deterime if they will qualify for the technical and financial bidding.

Mock-up sites for the PSIP II include 8 schools in Pampanga. Since there are only 4 firms who prequalified, each will choose two sites where they will build 4 mock-up classrooms.

The firms chose the following schools:

• Megawide – Mexico National High School & San Nicolas Elementary School
• BF Corporation – Mabalacat High School & Dr. Adelaido C. Bernardo NHS
• DM Wenceslao & Associates – Cuayan Elementary School & Rafael Lazatin Memorial High School
• Vicente T. Lao Constructors/BSP & Co., Inc. – Ayala High School & Manibaug Libutad Elementary School

“DepEd (Department of Education) has already released performance specification standards on the classrooms, for example, height, temperature… They will build sample classrooms to meet all those criteria and that will become the basis for the technical evaluation of the PBAC (Prequalification, Bids, and Awards Committee),” PPP Center Executive Director Cosette Canilao said in an interview. 

The mock-up rooms will have to be completed before the technical and financial bidding for the PSIP on June 17. The issuance of notice award will be given on August 7 and the signing of the agreement is slated for August 26.

More than one winner

The DepEd said the project, which will be undertaken through a build-transfer PPP mode, will require contractors to complete all 10,679 classrooms in a span of 14 months. 

DepEd Undersecretary of Finance & Administration Francisco Varela said that given the scale of the project, it is likely that there will be more than one winner for the PSIP, similar to the first phase of the PSIP.

The P16.42-billion PSIP Phase I was undertaken by Citicore Holdings Investment Inc.-Megawide Construction Corp. Inc., and BF Corp.- Riverbanks Development Corp. 

Labor can be divided among qualified bidders because PSIP II has 5 packages: two packages each in Luzon and Mindanao, and one in the Visayas. PSIP I was divided into East and West packages. 

But Varela said it is also possible for a single bidder to win the entire contract. It will just depend on the company’s technical and financial capability. 

Financial capability is important since the government will not be able to pay the winning bidder outright. The winning bidder can bill the government only after it completes at least 20% of the required classrooms in a package.

Varela stressed that the government will not pay for incomplete classrooms. The classrooms that are expected to be delivered are furnished rooms complete with armchairs, ventilation systems, etc. 

“The ideal for government is really to get the classrooms built on time at the lowest cost. So if that can be performed by one single bidder, then that is okay. But, of course it’s a major undertaking so the likelihood is that you will probably have more than one bidder. There is also question of whether they can mobilize or undertake a nationwide project like this at the same time,” Valera said.

Project details

The bulk or 1,222 of the classrooms will be built in Region X or Northern Mindanao, while the least number of classrooms will be built in Region 1 or Ilocos, with only 241 classrooms. 

The other regions that will receive over 1,000 rooms are:

• Region IV-B or MIMAROPA – 1,108
• Region V or Bicol – 1,061
• Region VII or Central Visayas – 1,037
• Region III or Central Luzon – 1,017

The regions that will receive less than 600 rooms are:

• Region XI or Davao – 355 
• Region IX or Zamboanga Peninsula – 476
• Region II or Cagayan Valley – 547

Initially, there were 9 companies eyeing the project: 

• Megawide
• BF Corporation
• DM Wenceslao & Associates
• IPM Construction and Development Corporation
• Makati Development Corporation
• R2 Builders
• R.R, Encabo Contractor Inc.
• S.C. Megaworld Construction and Development Corporation’
• Vicente T. Lao Constructors/BSP & Co., Inc.

– Rappler.com