SMC, Malaysian-led groups appeal exclusion from rail ticket bidding

MANILA, Philippines - The groups led by diversified conglomerate San Miguel Corp. (SMC) and MTD Capital Berhad of Malaysia have filed an appeal before the Department of Transportation and Communications (DOTC) regarding their failure to qualify for the bidding of the P1.72-billion single ticketing system for the Metro Rail Transit (MRT) and Light Rail Transit (LRT).

Sources at the DOTC said both groups have written the DOTC seeking reconsideration of an earlier decision disqualifying them from joining the bidding of the automated fare collection system (AFCS).

The sources pointed out that the agency’s Bids and Awards Committee (BAC) has yet to act on the appeal as both groups did not pay the appeal fee specified under the Build-Operate-Tranfer (BOT) law.

The BOT law requires an appeal fee equivalent to 0.5 percent of the total project cost.

“The BAC has yet to act on the appeal due to the non-payment of appeal fee as required under the BOT law,” one of the sources explained.

SMC submitted qualification documents to the DOTC last April 12 through San Miguel Transport Solutions Consortium composed of Optimal Infrastructure Development Inc., Catchweight Holdings Inc., Deltacrest Holdings Inc., and Allcard Plastics Philippines Inc. to bid for the project. Its partners include Petron Corp., Philippine National Bank, Singapore Technologies Electronics Ltd., Korea Railroad Corp., Korail Networks Co. Ltd., and Vix Technology (East Asia) Ltd.

The MTD-PRLM consortium, meanwhile, consists of MTD Capital and Puregold Realty Leasing and Management Inc. of businessman Lucio Co with partners Puregold Priceclub Inc., Transit Link Pte Ltd., and Maybank of Malaysia.

The DOTC earlier said SMC’s project implementation plan and project development plan did not include certain required components.

On the other hand, the DOTC said MTD-PRLM’s submission lacked proof establishing the required experience of its nominated AFCS operator and its Project implementation plan and project development plan failed to show its ability to undertake the project due to missing components.

Earlier, SMC president and chief operating officer Ramon S. Ang said the conglomerate would challenge the decision of the DOTC disqualifying the company from the bidding.

“ We will definitely challenge and provide detailed objections to each of the reasons they gave for our exclusion. We know we are fully compliant and as we always say, remain committed to giving the best and the right bid for government to help jumpstart the economy,” Ang stressed.

Aside from SMC and MTD, the DOTC also disqualified the Lamco consortium and Mega Lucky United consortium.

Companies that were prequalified included the AF consortium led by Ayala Corp. and infrastructure giant Metro Pacific Investments Corp. (MPIC) of businessman Manuel V. Pangilinan; Comworks consortium; E-Trans Solutions Joint Venture Inc.; Megawide-Suyen-Eurolink Consortium; and SM Consortium of retail magnate Henry Sy.

The AF Consortium is composed of BPI Card Finance Corp., MPIC, PLDT’s Smart Communications Inc., Globe Telecom Inc., AC Infrastructure Holdings Corp., and NTT Data Corp. Its partners include Bank of the Philippine Islands, Octopus Transactions Ltd., SMRT International Pte. Ltd., Cubic Transportation Systems (Australia) Pty. Ltd., Accenture, Inc., MSI Global Private Ltd., and Indra Sistemas S.A.

The E-Trans Solutions is composed of Tera Investments Inc., Eastwest Banking Corp., Sagesoft Solutions Inc., Pilipinas Micro-Matrix Technology (PMT Joint Venture) Inc., and Pulsar Avancer Technologie Inc. Its partners include Kentkart EGE Elektronik San. Ve Tic. A.S., Kentkart Marmara Elektronik Turizm San. Ve Tic. A.S., Kentkart Cukurova Elektronik San. Ve Tic. A.S., and JTKC Equities, Inc.

The Megawide-Suyen-Eurolink Consortium is composed of Megawide Construction Corp., Suyen Corp., and Eurolink Network International Corp. while its partners include EZ-Link Pte Ltd, and China National Software and Service Co. Ltd.

The SM Consortium is composed of SM Investments Corp., BDO Capital and Investment Corp., Advanced Card Systems Ltd., and Pentacapital Investment Corp. while partners include SM Retail Inc., BDO Unibank, Inc., and Goldsign Data Co. Ltd.

Meanwhile, the Comworks consortium is composed of Comworks Inc., Philippine Gaming Management Corp., Kaohsiung Rapid Transit Corp., Acer Inc., Infochamp Systems Corp., and Berjaya Philippines Inc.