San Miguel, Megawide group qualify to bid for reg’l prison PPP

Chrisee Dela Paz
The new facility will accommodate 26,880 inmates and will include staff housing, administrative buildings, and areas for rehabilitation

PRISON PRIVATIZATION. A new prison facility will be built to "provide adequate living space, facilities, and address the basic needs of inmates incarcerated in existing penal facilities"

MANILA, Philippines – San Miguel Holdings Corporation and a group led by Megawide Construction Corporation have qualified to bid for the P50.18-billion ($1.11 billion) contract to build and maintain a new prison in Fort Magsaysay, Nueva Ecija.

The Department of Justice (DOJ) on Wednesday, July 15, announced the two qualifying bidders among the 3 groups that submitted pre-qualification documents for the Regional Prison Facilities through a public-private partenership (PPP).

The two qualified groups are San Miguel Holdings and Mega Structure Consortium composed of Megawide, Citicore Megawide Consortium Incorporated, and GMR Infrastructure Singapore Private Limited.

The parent firm of construction giant DM Consunji Incorporated (DMCI), however, was disqualified. 

“DMCI was disqualified for failure to submit complete required pre-qualification documents,” Rosario Elena Laborte-Cuevas, legal officer of DOJ’s Pre-qualification, Bids and Awards Committee, said in a mobile phone reply.

The tentative schedule for the submission of bids by qualified bidders is on August 14, while the signing of the concession agreement is in September. (READ: Should PH privatize prisons?)

The tender for the P50.18-billion ($1.11 billion) deal involving the construction and development of a new prison facility, was launched in February. 

Modernize prison facilities

Under this project, a new prison facility will be built to “provide adequate living space, facilities, and address the basic needs of inmates incarcerated in existing penal facilities such as the New Bilibid Prison and the Correctional Institution for Women.”

About 21,106 convicts at the New Bilibid Prison in Muntinlupa City and 2,016 inmates at the Correctional Institution for Women in Mandaluyong City will be transferred to the Nueva Ecija facility once construction is completed some time in 2019, according to the project brief.

According to the project information memorandum, the target date of the issuance of Notice of Award is on September 3. The target date of the contract signing for the winning bidder is on September 30, and of the issuance of Notice to Proceed, March 2016.

The winning concessionaire will be responsible for the financing, detailed design and construction, and maintenance of the prison facility for 23 years, inclusive of a 3-year construction period.

The new facility will accommodate 26,880 inmates, and include staff housing, administrative buildings, and areas for rehabilitation (sports, work and religious activities).

The Aquino administration has already awarded 10 PPP projects since 2010 with a total indicative cost of P189 billion ($4.19 billion). – Rappler.com

$1=P45.21