Navy allots P25M for consultant

MANILA, Philippines - The Navy will spend P25-million for the services of a consultant for its multi-billion ship acquisition project.

Commodore Ronald Mercado of the Navy technical working group said the consultant would complement their expertise on the ships' design and capabilities.

"The consultant will provide us the technical expertise and the knowledge," Mercado told reporters in an interview Monday.

The Defense department has allowed the Navy to tap a consultant for the project, which seeks to improve the country's territorial defense capabilities.

The goverment is spending P18 billion to buy two Navy frigates as part of the military's upgrade efforts.

The bidding process for the project started late last year.

The consultant for the project will be chosen through negotiations. Mercado said they are looking for a consultant in the region with proven expertise and track record.

"We need to have it (consultant) within next month," he said.

The budget for the consultant will be charged from the Armed Forces Modernization Fund.

Earlier, THE STAR reported that four companies have been declared eligible to proceed to the next phase of the bidding for the P18-billion project.

The eligible bidders are Navantia Sepi (RTR Ventures) of Spain and South Korean firms STX Offshore & Shipbuilding, Daewoo Shipbuilding & Marine Engineering Co. Ltd. and Hyundai Heavy Industries, Inc.

The four firms passed the first stage of the bidding, which involved the inspection of company eligibility documents.

Three other companies joined the bidding but the Defense department declared their documents to be deficient. The three disqualified firms are now asking the agency to reconsider its decision and to declare them as eligible bidders.

The three bidders that filed motions for reconsideration were Garden Reach Shipbuilders & Engineers Ltd. of India, STX France SA and Thyssenkrupp Marine System.

The Navy will nevertheless review the offers of the four eligible fims while the Defense department deliberates on the appeal of the disqualified bidders.

Mercado said they would conduct workshops in Cavite next month to assess the technical features of the ships being offered. The Navy technical working group will allot five days to each bid submitted.

Mercado said they would allot another three weeks for assessments in the event that the Defense department reverses its decision on the three disqualified firms. 

The second phase of the bidding will involve the opening of financial documents to determine who among the bidders is offering the lowest price.