In a letter dated Oct. 4 to Metrostar Ferry, Inc., the PRRC approving committee reiterated its reason for disqualifying Metrostar.
The approving committee explained that all the bidders were required to submit a commitment (credit line) from a reputable financing institution to prove that the bidder has the required financing for the ferry service operation.
The committee said Metrostar submitted a loan application for P300 million with Philippine Veterans Bank. "A loan application can never be considered as an approved credit line," it pointed out.
Furthermore, the committee noted, PVB had required an unconditional guarantee from Philexim (Tidcorp) for them to process the loan application.
The guarantee, according to the committee, is indispensible in assessing the eligibility of Metrostar.
The committee also noted that Metrostar’s required capitalization is P100 million, but its paid up capital is only P55 million.
With a cost of at least P5 million per boat and a requirement of at least 10 boats to service the 17-kilometer route, the committee noted that Metrostar would have a deficiency of P45 million.
Metrostar’s project cost was estimated at P144 million.
In its letter to Metrostar, the committee said it "cannot go beyond the documents you have submitted and has to strictly abide by the required process and procedure. Any deviation from the same would have resulted in a failed bidding."