‘TRO on Malampaya Fund delays upgrade of Oyster Bay’

MANILA, Philippines - Officials believe a Supreme Court (SC) order stopping the use of the Malampaya Fund is delaying the upgrade of facilities in Oyster Bay.

The Department of National Defense (DND) cannot issue a notice of award to two firms offering the lowest bids for the P313-million Oyster Bay project as the Malampaya Fund will bankroll it.

Speaking to reporters yesterday, Defense Secretary Voltaire Gazmin said “there may be delays because we have several projects involving the acquisition of assets and equipment for the protection of the Malampaya project.”

Data seen by The STAR showed that two local firms have been declared the lowest bidders for two projects or lots to improve the Oyster Bay facilities.

One lot involves the construction of a pier and harbor, while the other  entails the building of support facilities.

Vicente T. Lao Construction based in Panacan, Davao City offered to construct the pier and harbor for P209.637 million, lower than the approved budget of P236.637 million.

Its offer is lower than that of other bidders Luzviminda Engineering and Construction (P228.73 million), C.S. Santiago Construction Company Inc. (P212.21 million) and the joint venture of Markbilt Construction and Phil. Rigid Construction (P226.08 million).

San Juan City-based Luzviminda Engineering Construction offered to build the Oyster Bay support facilities for P73.595 million, well within the approved budget of P76.49 million.

The bid is lower than that of the other bidder Vinhar Construction, which offered P76.29 million.

Vicente T. Lao Construction and Luzviminda Engineering Construction satisfied the requirements of the post-qualification phase held last January.

A security official, who spoke on condition of anonymity, said the completion of the Oyster Bay projects would allow the government to save on operational costs.

“It (Oyster Bay facilities upgrade) should be seen as an investment because it can cut operational costs in the security of energy projects,” the official said.

Last September, the SC issued a temporary restraining order (TRO) on the release of funds from Malampaya based on petitions of groups who believe that the government is misusing the funds.

The SC barred the executive from disbursing Malampaya funds under the phrase “for such other purposes as may be hereafter directed by the President under Section 8 of Presidential Decree  No. 910.”