The special bids and awards committee announced yesterday that it has approved the recommendation of the technical working group to qualify the four bidders: Ayala-controlled Manila Water Co. and partners JW International and BPI Capital Corp.; the tandem of Metro Pacific Corp. and DMCI Holdings Inc.; India’s Infrastructure Leasing & Financial Services Ltd.-Strategic Alliance; and the consortium of Rubia Holdings-Noonday Asset Management Asia Pte. and Karunakaran Ramchand of India.
According to the committee, the bidders will have to conduct their due diligence scheduled on Sept. 26, which will be followed by a pre-bid conference on Sept. 27. Thereafter, qualified bidders must submit their technical and financial bid proposals no later than 2 p.m. of Oct. 24.
The opening of the sealed envelopes is scheduled on Nov. 10 while the notice of award to the winning bidder will be on Nov. 14, 2006, after the Interagency Privatization Council approves it.
The committee also clarified that a legal counsel can render legal advice and representation to one bidder only.
The government has set a minimum bid price of $56.4 million for its 83.97-percent stake in Maynilad held by the state-owned Metropolitan Waterworks and Sewerage System (MWSS). French utilities group Suez SA owns the remaining 16.03 percent.
The amount is on top of the $30-million performance bond and the $2.5-million bid guarantee required on bidders that pass the technical and business criteria.
ABN-AMRO is the financial advisor of the government in the privatization of its shares in Maynilad.
Under the term of reference approved by the board of directors of Maynilad, the winning bidder will take over and continue operations of the west zone for the remaining years of the 25-year concession.
The winning bidder will also assume Maynilad’s obligations under a "debt and capital restructuring agreement" with the MWSS.
The Lopez family earlier tied up with Lyonnaise Asia Water Holdings Pte Ltd. of France to win the west service concession zone that was bid out by the MWSS in 1997.
However, Maynilad submitted itself to court rehabilitation and ceded control of the franchise to MWSS following its failure to pay fees and other dues to the water regulatory agency. It blamed its financial woes on the financial crisis that battered Asia in 1997.
Maynilad serves six million customers in Manila, Makati and Quezon City and the whole of Malabon, Navotas, Muntinlupa, Caloocan, Pasay, Parañaque, Las Piñas, Valenzuela and Cavite towns.
The Ayala Group holds holds 47.64 percent of the consortium made up of BPI Capital Investments Inc. (17.86 percent equity); British Virgin Islands-based JW International Corp. (11.91 percent) and WZ Co. Inc. of Mauritius (22.59 percent).
The Consunji group’s DMCI Holdings is forming a 50-50 partnership with Metro Pacific.
The Noonday-Rubia consortium is led by Rubia Holdings Ltd. (based in Cayman Islands) with a 20-percent equity; Malaysian YTL Power International Berhad, 20 percent; local firm Daiichi Properties and Development Inc., 30 percent, and ABP Holdings Corp. of Luis B. Puyat, 30 percent.
The other group led by Strategic Alliance Holdings Inc. of Cesar Quiambao holds a 60-percent stake while Infrastructure Leasing owns the remaining 40 percent.