MANILA, Philippines - The Department of Public Works and Highways (DPWH) is requiring interested bidders to secure a guaranteed loan from banks and other financial institutions worth at least half of the amount of the P35.4-billion toll road project that would link the provinces of Cavite and Laguna.
DPWH Undersecretary Rafael Yabut issued Supplemental Bid Bulletin 1 for the 47-kilometer Cavite-Laguna expressway project containing the amendments to the Instruction to Prospective Bidders issued by the agency early this month.
Yabut also chairs the agency’s Special Bids and Awards Committee (SBAC) for public private partnership (PPP) projects.
Under the amended instructions, prospective bidders are required to secure letters from potential lenders expressing their willingness to lend at least P18 billion to interested companies.
The DPWH said the amount could be reduced by the excess of the prospective bidders’ net worth over P7.6 billion.
The agency added that entities incorporated in the Philippines should secure the letters from financial institutions licensed by the Bangko Sentral ng Pilipinas (BSP) while foreign companies should get the letters from financial institutions licensed to lend money in the countries where they are registered.
The amount required by the SBAC is now lower compared to the original amount of P20.4 billion.
Interested bidders have until Sept. 23 to submit their prequalification documents and until Dec. 27 to submit their technical and financial bids. The government is set to issue the notice of award for the project on Jan. 3 next year.
About 15 companies have expressed interest in the project including the Manuel V. Pangilinan-led Metro Pacific Tollways Corp., diversified conglomerate San Miquel Corp., the Ayala Group’s AC Infrastructure Holdings Corp. and Makati Development Corp., Cebu-based Aboitizland Inc., Megawide Engineering Excellence, the joint venture of Tokwing Construction Corp. and STX Enterprises; the EFC Enterprises; M/s IL&FS Transportation Networks Ltd (ITNL) as well as the L&T Infrastructure Development Projects Ltd.