DTI requires NSC bidders to put up P1-B guarantee bond

Prospective bidders vying to operate/lease the National Steel Corp. (NSC) facilities in Iligan City are required to put up a P1- billion cash and guarantee bond under the Terms of Reference (TOR) approved by the Evaluation Committee.

The P1-billion cash and guarantee bonds is being protested by Allengoal Steel Fabrication & Trading which claims that the "unreasonable requirement" is "grossly disproportional to the scope of the supposed lease undertaking" and "gravely discriminates against Filipino bidders in favor of the other interest."

Trade and Industry Secretary Manuel Roxas II said the cash and guarantee bond requirement was set by the Evaluation Committee.

The amount was intended to prove that a proponent has adequate financial capability to sustain the financial requirements of the rehabilitation and interim operation, upgrade and maintenance of the NSC Iligan plant facilities.

Allengoal had sought the extension of the deadline for the submission of proposals and for the review and revision of the TOR.

Roxas, however, during the Oct. 23 meeting of the reconvened Evaluation Committee announced that the TOR will be retained as it and even Hottick Investment Limited, which is supporting Allengoal, had approved the TOR.

Meanwhile, there will be no extension of the new deadline for the submission of proposals to operate the mothballed plant of the National Steel Corp. (NSC).

According to Trade and Industry Secretary Manuel Roxas II, the extension of the submission of proposals to 5 p.m. of Thursday, Oct. 25, will be the final deadline.

The NSC Evaluation Committee, which was reconvened Tuesday, Oct. 23, had agreed to "bend over backwards" to extend the deadline just to accommodate Allengoal Steel Fabrication & Trading.

Allengoal had asked for more time to submit a proposal and sought clarification on the terms of reference for the new bidding process.

Roxas is hoping that given the additional time, Allengoal would not try to further deal the process by seeking a temporary restraining order (TRO).

Allengoal has been hesitant about joining the Evaluation Committee process being followed in the NSC as it is claiming that it already secured a contract to operate the Iligan plant about two years ago.

Roxas insists that the contract has already been declared "null and void" by the Securities and Exchange Commission (SEC) which is also part of the current Evaluation Committee.

The EC is supposed to have accepted lease proposals from interested parties last Tuesday.

Only two companies appeared and submitted their proposals. These were Voest Alpine and Cathay Pacific Steel Co. (Capasco). However, the Evaluation Committee decided to return unopened the proposals submitted by the two and asked them, instead, to re-submit their proposal by the close of business hours on Thursday, Oct. 25.

While the bids would be opened on Thursday, Oct. 25, formal evaluation of the proposals would only begin by Monday, Oct. 29.

Roxas, however, could not give a definite date as to when the Evaluation Committee would announce the final decision on who would be allowed to operate the mothballed steel firm.