DPWH to strictly adopt conflict of interest rule in Calax bid

MANILA, Philippines -  The Department of Public Works and Highways (DPWH) is set to strictly implement the conflict of interest provision for the bidding of the P35.4 billion expressway that would connect the provinces of Cavite and Laguna.

In a supplemental bid bulletin, DPWH Undersecretary Rafael Yabut reminded the prequalified bidders on the rules and restrictions regarding conflict of interest under section 22 of the Instruction to Prospective Bidders of the Cavite-Laguna expressway (Calax).

“Please be reminded of the rules and restrictions regarding conflict of interest in the Calax. It is the bidders’ responsibility to ensure compliance with the said rules and restrictions,” he said.

Yabut, who chairs the agency’s Special Bids and Awards Committee (SBAC) for Public Private Partnership (PPP) Projects, pointed out that the provision states that prospective bidders and consortium members including their proposed contractors and affiliates must not have any conflict of interest.

“All bidders are advised to undertake the necessary precautions in order to ensure that no conflict of interest exists. The SBAC shall act accordingly in the event it is discovered that the conflict of interest rules have been violated,” he warned.

The rules, according to him, prohibits a member of the board of directors, partner, officer, employee, professional advisor or agent who is directly involved in any capacity in the bidding process of a prospective bidder, any consortium member, or any of their affiliates could not be directly involved in any capacity with the other groups within a period beginning July 22, 2013 until ending of the financial closing for the project.

The DPWH prequalified four groups including the Ayala-led Team “Orion”, MPCALA Holdings Inc. of infrastructure conglomerate Metro Pacific Investments Corp., Optimal Infrastructure Development Inc. of diversified conglomerate San Miguel Corp. (SMC), and Malaysian-owned MTD Philippines.

The DPWH is considering extending anew the April 28 deadline for the submission of bids for the project to give the bidders more time to prepare their bid documents.

 The rules prohibit a prospective bidder or any of its consortium members including construction contractor as well as operation and maintenance contact or any of their affiliates from being a member of another consortium.

A conflict of interest also exists when a prospective bidder or any of its consortium members, or any of their affiliates has ownership interest of at least 20 percent in any other group.

There is also conflict of interest if a prospective bidder, any of its consortium members, any of its proposed construction contractors and operation and maintenance contractors has participated as a consultant to the DPWH in preparation of any documents, design or technical specifications of the Calax project.

Likewise, the DPWH stated that there is also conflict of interest if a prospective bidder, any of its consortium members, any of its proposed construction as well as operation and maintenance contractors engages any legal, financial or technical adviser of DPWH in relation to the project or anyone who is or was an employee of DPWH less than one year before his or her engagement in any prospective bidder.

 Yabut pointed out that the prospective bidders found violating the conflict of interest rules would be disqualified from the bidding process.

 The 47-kilometer closed-system tolled expressway would connect the South Luzon expressway (SLEX) and the Manila Cavite Tollroad expressway (Cavitex).

 The four-lane expressway starting from the Cavitex in Kawit, Cavite and end at the SLEX-Mamplasan Interchange in Biñan, Laguna would have a concession period 35 years including design and construction of four years.

The alleged conflict of interest violation raised by the Filinvest Group of taipan Andrew Gotianun against the tandem of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Airports has been delaying the award of the P17.5-billion Mactan-Cebu international airport expansion project.