LRTA: No rebidding for LRT expansion

The Light Rail Transit Authority (LRTA) is not inclined to rebid the $204-million Light Rail Transit (LRT) Line-1 expansion project despite accusations that the pre-bidding was marred by irregularities.

LRTA Administrator Pacifico Fajardo said they would rather secure an opinion from the Bangko Sentral ng Pilipinas (BSP) regarding technicalities of the bidding procedure being questioned by the disqualified bidder, Japanese construction giant Marubeni Corp.

Fajardo said completion of the bidding was already delayed and rebidding the project would take even more time and effort.

"A rebidding is not that easy. We have to draw up another scope of work and other things. This has to be done because the bidders have already seen it (scope of work)," Fajardo told The Star.

He said he had reviewed the bidding process and saw no irregularities.

Last Sunday, opposition senatorial candidate Francisco Tatad accused groups identified with Malacañang of extorting campaign money from at least two Japanese multinational corporations interested in bidding for the LRT expansion project.

He said "unconfirmed reports" reaching him disclosed that Malacañang has demanded a participation fee of $1 million from each bidder, thus limiting the bidders for the project to two firms — the Kanematsu-Kawasaki Steel consortium and the Sumitomo-Itochu joint venture.

Fajardo, however, told The STAR that the charges are all lies. "Walang (No) proof," he said.

The Department of Transportation and Communications (DOTC) also denied Tatad’s accusations the other day, citing the due diligence undertaken to protect the integrity of the bidding process, including securing opinions from the Department of Justice and the BSP.

This was after Marubeni Corp. complained that certain lapses may have been inadvertently committed during the early stages of the bidding, particularly in the area of bid security.

Marubeni’s bid was left unopened as it was rejected by the DOTC-bids and awards committee (BAC) reportedly upon the recommendation of its technical working group.

The LRT expansion project, which will be funded by the Japanese Bank for International Cooperation (JBIC), involves the procurement of 12 more air-conditioned rail cars for LRT Line-1, which runs from Monumento in Caloocan City to Baclaran in Parañaque City, and upgrading the line’s technical and electrical systems.

JBIC-funded projects are "tied loans" to the Philippines, which means that only Japanese corporations and entities are qualified to participate in the bidding process.

Meanwhile, as controversy hounds the LRTA project, Fajardo sought to downplay the double position he would soon be occupying in government.

A former Nueva Ecija congressman and mayor of Palayan City, Fajardo will be re-elected to the San Miguel Corp. (SMC) board in April.

He was renominated by Malacañang to occupy one of the five seats held by the government in the beer and beverage conglomerate, along with banker Octavio Espiritu and Egmidio Jose.

Fajardo explained that his compensation from the SMC board directorship would be limited to P12,000, as per executive order issued by President Arroyo limiting the compensation of appointees in government-owned and controlled corporations.

He also explained that he was a successful businessman before his entry into politics and public service.

"I am proud to say that I did not enrich myself in office. Actually, it’s quite the opposite," he told The STAR.