Megawide bags 5th PPP project

MANILA, Philippines - The Aquino administration has awarded another Public-Private Partnership (PPP) project after the Department of Transportation and Communications (DOTC) named the group of Filipino-owned Megawide Construction Corp. as the winning bidder for the P2.5-billion Integrated Transport System – Southwest Terminal.

Transportation Secretary Joseph Emilio Abaya said in a text message that the agency’s Bids and Awards Committee (BAC) has awarded the PPP project to Megawide’s MWM Terminals.

This brings to nine the number of PPP projects worth P135.36 billion awarded by the Aquino administration which has raised a premium payment of over P36 billion.

Aside from the ITS – Southwest Terminal, the government has awarded 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).

On the other hand, Megawide has bagged five of the awarded PPP projects, including the Mactan Cebu International Airport expansion program together with Bangalore-based GMR Infrastructure; the modernization of Philippine Orthophedic Center together with World Citi; the P16.42 billion PPP for School Infrastructure project phase I; and the P3.86 billion PSIP phase II.

MWM Terminals submitted an annual grantor payment (AGP) of P100 million, while Filinvest Land Inc. of taipan Andrew Gotianun offered an annual grantor

payment of P650 million. AGP are payments to be made by the government to the concessionaire, and the lower AGP, the better for the government.

DOTC spokesperson Michael Arthur Sagcal confirmed that the first PPP project this year has been awarded to Megawide’s MWM Terminals which was been given until Feb. 12 to complete the post-award requirements to pave the way for the signing of the concession agreement towards the end of February.

Sagcal pointed out that the winning concessionaire has eight months to start the construction of the transport hub and has 18 months or until April 2017 to complete the PPP project.

A total of 16 companies including diversified conglomerate San Miguel Corp., conglomerate Ayala Corp. and property giant Ayala Land Inc., Metro Pacific Tollways Corp. of infrastructure giant Metro Pacific Investments Corp., Robinsons Land Inc. of taipan John Gokongwei, D.M. Wenceslao and Associates Inc., Vicente T. Lao Construction, French-owned Egis Projects Philippines; Megaworld Corp.; State Properties Corp.; Expedition Properties Corp.; MGS Construction Inc.; Altus San Nicolas Corp.; and Tutuban Properties bought prequalification documents for the project. 

However, only MWM Terminals and Filinvest Land submitted qualification documents together with technical and financial bids last Dec. 22.