DPWH disqualifies SMC in CALAX bid: Conglomerate vows to pursue all legal remedies to stop opening of bids today

MANILA, Philippines - The Department of Public Works and Highways (DPWH) has disqualified San Miguel Corp. (SMC) from bidding for the P35.4-billion Cavite-Laguna Expressway (CALAX) project.

Public Works Secretary Rogelio Singson said Optimal Infrastructure Development Inc. didn’t qualify for the bidding. Optimal Infrastructure is the unit of SMC that participated in the bidding.

 In a statement, SMC said it “disagrees in the strongest terms with the decision of the DPWH to disqualify Optimal Infrastructure from the bidding process and would pursue all legal options available.”

 â€œAs such, we reject this decision and will explore all legal remedies available to us in order to ensure fair play and give the Filipino people the best possible deal for this vital infrastructure project,” SMC said.

Singson said the DPWH Special Bids and Awards Committee disqualified Optimal Infrastructure after it failed to comply with the bidding rules particularly on the issue of the validity of its bid security.

 â€œYes Optimal was disqualified due to defective bid security. The expiration date was short of the requirement,” Singson said.

 SMC argued that Optimal Infrastructure has already clarified the issues raised by the other bidders concerning its compliance to the bidding rules particularly the validity of its bid security.

 SMC earlier said its unit is fully compliant with the bid requirements for the toll road project as ANZ Bank has issued a certification that the company’s bid security is valid until Nov. 29 and not Nov. 25.

“Given that we have already clarified the issue of bid security and amended our bid to make it responsive to bidding criteria, the decision to throw out the bid of our subsidiary Optimal Infrastructure is prejudicial, unfair, and disregards both legal and all common sense considerations that should be given to projects of this scale and importance,” SMC said.

The conglomerate argued that disregarding the company’s bid for the public private partnership (PPP) project would put the government at a disadvantageous position.

“Preventing the company from proceeding with its bid severely limits government’s options on how it can maximize benefits from this project and ignores what SMC might bring to the project in terms of quality of meeting the infrastructure specifications and getting the job done,” the company added.

Singson, however, brushed aside SMC’s threat and said the agency would push through with the opening of the financial bids this afternoon.

“It’s their option. We will open financial bids 3 pm today,” Singson said.   

The P35.4 billion project involves the financing, design and construction, operation and maintenance of a four-lane, 47-kilometer closed-system toll expressway connecting the South Luzon expressway (SLEX) and the Manila Cavite Tollroad expressway (Cavitex).