NEDA-ICC clears P35.4-B Calax rebid, Swiss challenge for NLEX-SLEX road

MANILA, Philippines - The Cabinet level National Economic and Development Authority – Investment Coordination Committee (NEDA-ICC) has approved the rebidding for the P35.4 billion Cavite – Laguna expressway (Calax) and Swiss challenge for the P18 billion North Luzon expressway – South Luzon expressway connector road of infrastructure giant Metro Pacific Investments Corp. (MPIC) but deferred the approval of six other public private partnership (PPP) projects.

PPP Centre executive director Cosette Canilao said the body approved the terms of the rebidding for Calax including the floor price of P20.105 billion.

Canilao explained that the rebidding for the 47-kilometer toll road would be undertaken through a one-stage bidding wherein interested bidders would submit their  pre-qualification documents as well as technical and financial proposals simultaneously.

“For Calax, it will  be a  one-stage  bidding involving the simultaneous submission of pre-qualification documents, technical and financial proposals. It will most likely be in February,”Canilao said.

Malacañang ordered the Department of Public Works and Highways (DPWH) to rebid the Calax project after diversified conglomerate San Miguel Corp. (SMC) questioned the disqualification of its unit Optimal Infrastructure Development Inc. (OIDI) from the bidding last June.

The tandem of conglomerate Ayala Corp. and listed Aboitiz Land Inc. through Team Orion has expressed disappointment over the decision of Malacañang to rebid the project. Team Orion emerged as the highest bidder last June with P11.66 billion followed by MPIC’s MP CALA Holdings with P11.33 billion, and Malaysian-owned Alloy MTD Philippines with P922 million.

Canilao said the NEDA-ICC also agreed to revert the NLEX-SLEX connector road back to the original “unsolicited proposal” scheme instead of the joint venture scheme with state-run Philippine National Construction Corp. (PNCC).

MPIC’s Metro Pacific Tollways Development Corp. (MPTDC) originally submitted the NLEX SLEX connector project to the DPWH in May 2010 under the Build-Operate-Transfer (BOT) Law. The NEDA Board approved the amendment or extension of existing joint venture between MPTDC and PNCC as well as the supplemental toll operations agreement (STOA) to cover the extension of the franchise of NLEX under PD 1894.

NLEX-SLEX connector road within the first quarter or early the next quarter of next year.

She added that the NEDA-ICC also approved the P400 million Tanauan City public market that involves the construction of a commercial building and rehabilitation of the wet and dry market to be located in the existing public market.

According to her, the PPP Center is hopeful that other local government units (LGUs) would also partner with the private sector to undertake major infrastructure projects.

Canilao said the NEDA-ICC deferred the approval of six other projects including the P374.5-billion Mass Transit System Loop or subway system connecting the central business districts in Makati, Taguig, and Pasay; P177.2 billion North –South Railway project from Metro Manila to Legazpi City in Albay; the P19.33-billion Motor Vehicle Inspection System (MVIS); the P18.99 billion Davao Sasa port modernisation project; the P1.16 billion Civil Registry System – Information Technology project (Phase 2); and the P50.2 billion Regional Prison Facilities that would replace the National Bilibid Prisons in Muntinlupa City.

“There are open issues but there is going to be another NEDA-ICC meeting tentatively scheduled on Jan. 14,” she added.

Canilao is hopeful that the NEDA Board chaired by President Aquino would be able to convene after the visit of Pope Francis to pave the way for the roll out of the major infrastructure projects.

“We are hoping that we will also be able to get NEDA Board meeting by the end of January so we will be able to secure approval for these projects and roll out these projects in the first or early second quarter of next year,” she said.

She pointed out that the feasibility studies for other PPP projects including the Batangas - Manila 1 Natural Gas pipeline projects are nearing completion.

The Aquino administration is set to roll out 18 PPP projects worth P407 billion before June next year as part of the inventory of over 50 projects already in the pipeline.

The government has so far rolled out the biggest PPP project so far with the P123 billion Laguna Lakeshore expressway dike project; the P24.4 billion Bulacan Bulk Water supply project; the P18.7 billion New Centennial Water Source; the P4 billion Integrated Transport System (ITS) – South terminal; the P2.5 billion ITS-Southwest terminal; and the operation and maintenance of LRT-2.

The roll out of PPP projects in the Philippines is in full swing after the award of eight PPP projects worth close to P133 billion. The government raised a premium payment of over P36 billion for the awarded PPP projects.

These include the Daang Hari – South Luzon expressway link road (P2 billion), PPP for School Infrastructure Project phase 1 (P8.86 billion), the PSIP-2 (P16.28 billion), the modernization project for the Philippine Orthopedic Center (P5.98 billion), the Ninoy Aquino International Airport expressway (P15.52 billion), the automated fare collection system project (P1.72 billion), the Mactan – Cebu international airport expansion project (P17.5 billion), and the Light Rail Transit line 1 Cavite extension project (P65 billion).