4 firms qualify for P18-B Navy frigate bidding

MANILA, Philippines - Four companies have qualified for the next stage of the bidding for the acquisition by the Philippine Navy of two frigates worth P18 billion.

Navantia Sepi (RTR Ventures) of Spain and South Korean firms STX Offshore & Shipbuilding, Daewoo Shipbuilding & Marine Engineering Co. Ltd. and Hyundai Heavy Industries, Inc. hurdled the first stage of the bidding process, which involved the inspection of company documents, The STAR learned.

Fourteen firms bought bid documents but only seven submitted bids for the frigate acquisition project, one of the big-ticket items in the Armed Forces of the Philippines’ upgrade program. The ships can be used to boost the Philippines’ security presence in the West Philippine Sea and conduct humanitarian missions.

The Department of National Defense’s bids and awards committee said documents submitted by three of the seven bidders had deficiencies. Garden Reach Shipbuilders & Engineers Ltd. of India, STX France SA and Thyssenkrupp Marine System can still file a motion for reconsideration to prove that they are qualified to bid for the project, the committee said.

The seven firms that bought bid documents but did not submit offers were  Piriou Naval Services, Damen Shipyards, Fincantieri, DCNS France, Magazon Dock Pipavav Defense Pvt. Ltd., Stone of David and Rouvia Yachts / Rouvia Defense Inc.

Second stage

The second stage of the bidding will involve the opening of financial proposals and technical documents. This phase will determine if the bidders’ offers are well within the approved budget of P18-billion and if their goods are in line with the specifications provided in the bid documents. The second phase of the bidding will be held this month.

The government decided to conduct a two-stage competitive bidding due to the technical and detailed nature of the project.

The winning bidder is required to deliver the ships within four years from the opening of a letter of credit, a document that assures the supplier that the government will honor its financial obligations.

This means that that the vessels may arrive in the country after President Aquino steps down from office in 2016.

Defense officials, nevertheless, said what is important is they have started to modernize the Philippine Navy, said to be one of the ill-equipped units in the region.