A tale of two bids

Two major public-private partnership (PPP) projects of the Department of Transportation and Communication (DOTC) have been hugging the headlines lately.

These are the Automated Fare Collection System (AFCS) and the Mactan-Cebu International Airport.

The AFCS bidding, the single ticketing system for Metro Manila’s three rail transit lines MRT 3, and LRT 1 and 2, was deferred due to losing bidder E-Trans Solutions Joint Venture Inc.’s complaint. E-Trans Solutions is an affiliate of Eastwest Bank, a Filinvest company. 

After failing to pass the pre-qualification bid because the technical proposal was found to be incomplete, unclear and non-compliant with the AFCS scheme provider principles, E-Trans Solutions appealed for the DOTC to reconsider its decision, effectively delaying the process.

But even if the DOTC has turned down its motion for consideration, the disqualified bidder insists that it has a better offer than frontrunner AF Consortium of the Ayala-Metro Pacific joint venture.

It was only last Friday that the DOTC announced that it  has finally awarded the P1.72-billion contract for the common ticket project of the Metro Rail Transit and Light Rail Transit to the partnership of Ayala and Metro Pacific Investments Corp. (MPIC).

The AFCS  is the first public private partnership (PPP) project to be successfully awarded by the DOTC.

Meanwhile, another major PPP project that’s left hanging is the Mactan-Cebu International Airport project where the Megawide-GMR consortium emerged as the winning bidder with Filinvest coming in as the runner up.

There was already a mood of anticipation and excitement among investors, most especially the local community of Cebu with the project expected to be rolled out in January when the Notice of Award to Megawide-GMR would be given.

However, Filinvest was able to postpone the award when it started hurling accusations against the top bidder.

Interestingly, what has been notable is the silence of one of the key players in the unfolding airport bidding imbroglio – the Changi Airports Group.

Undoubtedly, the Changi Group and, in fact, Singapore as a country, have an enviable reputation for efficiency, fairness and uprightness. We’ve seldom heard of controversies involving the Changi Group – or any company from Singapore – where they have unduly meddled in the affairs of a third party or tried to sling mud on rival bidders.

Filinvest is going all out to scuttle the award to Megawide-GMR. The losing consortium has cited issues such as GMR’s credentials as an airport operator, their qualification for the financial bid and an alleged conflict of interest with another bidder.

While Changi Group’s credentials are well-known globally, it is puzzling as to what Changi is really gaining, if anything at all, from this ongoing mud-slinging.

I am sure Changi is aware that developing and operating an airport in a complex environment like the Philippines is significantly different from running an airport in a city-state like Singapore. The success and fame of Changi Airport is as much about the vision and commitment of the Singapore Government as it is about the efficiency and processes of the Changi Group.

Golf treat

Lorena Ochoa, formerly the world’s leading lady golfer, will be at the Wack Wack Golf and Country Club on February 3 as a special guest of the First Everest Academy Golf Cup.

Lorena is an alumna of one of the sister schools of Everest Academy, the only Catholic International School in the Philippines. The school is best known for providing its students with holistic formation and personalized attention through a gender specific approach, low student-teacher ratio, and highly qualified teachers. Everest Academy is accredited by AdvancEd, the largest educational community in the world.

Proceeds of the tournament will benefit Mano Amiga Academy, Everest Academy’s partner school that provides high quality education to underprivileged children. United Laboratories, Inc. is platinum sponsor of the tournament. Gold sponsors are Toyota Balintawak (for a hole-in-one Toyota Vios), The Turf Company, Cemex, Finix Corp and Business Mirror. Other sponsors include San Miguel Corp., Boulevard Holdings, Pico de Loro, W group, Technolux, Regent Travel, Baliwag Navigation, Poliform, Gold Centric Properties and Akira/Sumosam.

The First Everest Academy Golf Cup will also aid Lorena Ochoa’s foundation for the education of indigent children.

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