Cordova-Cebu City bridge: No challenger vs Metro Pacific

CEBU, Philippines - The Cebu City government has not received any Expressions of Interest (EOI) from private companies to challenge the proposal of Metro Pacific Tollways Development Corporation to undertake the third bridge project that connects Mactan Island and mainland Cebu.

Yesterday was the deadline for all Private Sector Proponents (PSPs) to submit their EOIs for the Swiss Challenge of MPTDC’s P27-billion proposal.

“So far, wala pay ni-submit. But there were two foreign companies pero ilaha was just the construction. They expressed that they are interested only to build the bridge but not to manage and operate the facility,” said Cebu City Administrator Lucelle Mercado, head of the city’s Committee on Awards and of the Cebu City Joint Venture Selection Committee.

Lawyer Mary Rose Salvatierra, head of the JVSC’s technical working group, said the foreign-owned companies were China Road and Bridge Corporation and Daelim Korea.

Salvatierra said both companies are 100 percent foreign-owned and are therefore barred by law to build the bridge since the Constitution requires a 60-40 Filipino-Foreign equity ownership.

Both the Cebu City government and the Municipality of Cordova have published invitations to bid for all interested PSPs last month.

Salvatierra said Cebu City it has not received any comparative proposals.

Because of this, both local government units would meet their respective committee on awards to discuss the outcome of the invitation to bid.

Mercado said the city has scheduled to have a meeting today to declare MPTDC as winning contractor to undertake the project.

Since there were no PSPs that submitted EOIs, the P279 million security bond paid by the MPTDC to both LGUs will be returned to the company as stipulated under the city’s terms of reference of the project.

The amount was paid by MPTDC last November 18, when Cordova published the invitation to bid.   The money will be returned since there were no private companies that expressed to challenge MPTDC’s proposal.

Mercado said the invitation to bid is deemed terminated since there were no private companies that expressed to challenge the original proposal.

Under the TOR, qualified private proponents should have undertaken the same project with minimum capitalization of P10 billion and has access to available credit facility of at least P18 billion.

The company should also secure bid documents amounting to P1 million, which is non-refundable.

Salvatierra said she will meet the JVSC of the Municipality of Cordova to discuss when to award the project to MPTDC.  (FREEMAN)