Metro Pacific told: Put up P279M bond by Nov. 18

CEBU, Philippines - The Cebu City government and the Municipality of Cordova have required Metro Pacific Tollways Development Corporation, which would construct a third bridge that connects Mactan island to mainland Cebu, to put up a security bond amounting to P279 million tomorrow, November 18.

The amount, which represents one percent of the total project cost estimated at P27 billion, would be divided by both local government units.

After the successful negotiation last October 9 with MPTDC, Cebu City and Cordova would start tomorrow the next stage of the project, which is the competitive stage or the “Swiss Challenge” that would be published by Cordova in a national paper. Cebu City, on the other hand, would have invitation to bid published on November 25.

Once the public notice of invitation to bid is done, Cebu City’s JVSC and Cordova’s Public-Private Partnership Selection Committee would start accepting comparative proposals until December 7.

In her November 12 letter to MPTDC president Ramoncito Fernandez, City Administrator Lucelle Mercado said the amount could be given to the LGUs in “cash or certified check, manager’s check, letter of credit, or bank draft or guarantee issued by (a) reputable local or foreign bank, or a surety bond callable on demand issued by (the) Government Service Insurance System or an entity duly registered and recognized by the Office of the Insurance Commissioner, or any combination thereof.”

Mercado is the chairperson of Cebu City’s Joint Venture Selection Committee.

Both LGUs would invite Private Sector Proponents (PSPs) to submit their Expressions of Interest (EOI) to challenge MPTDC’s proposal.

The notarized EOI should be forwarded to both committees of the LGUs on or before December 7. Only qualified PSPs can submit EOIs.

“Every EOI must also contain a statement that the PSP has undertaken and completed a similar project, (with) minimum capitalization of P10 billion, that it has access to available credit facility of at least P18 billion and shall obtain the bidding documents by paying the non-refundable amount of P1 million,” read the document on invitation to bid.

Further, the EOI must contain an undertaking by the prospective bidders that it would adhere to the ordinances, resolutions, policies, pronouncements, and qualifications criteria set by the selection committees of both LGUs.

“It (bidder) should not seek and obtain a writ of injunction or prohibition or restraining order against the JV-SC/Awards Committee and PPP-SC, the City of Cebu, Municipality of Cordova and its respective officials to prevent or restrain the Competitive challenge process, the award of the Project and the implementation of the Project, that it will not institute any criminal, civil and/or administrative cases against the officials of the JV-SC/Awards Committee and PPP-SC, the City of Cebu and Municipality of Cordova in connection therewith,” read the invitation to bid.

The P1-million non-refundable amount for bidding documents is payable to both the Municipality of Cordova and the Cebu City government, or P500,000 to each LGU. This amount should be paid by the prospective bidders within five days from receipt of the notice of eligibility to proceed to the competitive challenge.

The selection committees of both LGUs would meet if there are prospective bidders that will submit their EOIs on or before December 7 to determine if the bidders are eligible or not.

A technical working group under each LGU’s selection committee would be the one to render a recommendation.

“Qualified PSPs must submit its comparative proposals within 30 days from receipt of (the) notice of eligibility, during office hours. The Original Proponent (MPTDC) in turn will be given a period of ten calendar days from receipt of notice to exercise its right to match, in case there is a superior offer,” read the invitation to bid.

If a notarized EOI from a proper entity is received by both LGUs and no bidders would procure the bid document, the project would be awarded to MPTDC and the competitive challenge would be deemed “terminated.”

The third bridge project would be located around 7.5 kilometers south of the First Mandaue-Mactan Bridge and will take off from the Cebu South Coastal Road in Cebu City crossing the Mactan channel to Cordova in Mactan Island.  (FREEMAN)