MANILA, Philippines - Conglomerate Ayala Corp. is not interested in operating and maintaining the 93.77-kilometer Subic Clark Tarlac Expressway (SCTEX) that is being subjected to a “price challenge” by the Department of Public Works and Highways (DPWH).
John Eric Francia, managing director of Ayala, said in an interview with reporters that the conglomerate prefers joining competitive and transparent bidding rather than “price” or “Swiss challenges.”
“As a matter of preference, unless the project is strategic to us and that we believe that really has high potential where we can differentiate ourselves. Unless we meet either one of those criteria, we would rather stay away from price challenges or Swiss challenges,” Francia said.
Malacañang ordered a price challenge for the privatization of the 93.77-kilometer Subic-Clark-Tarlac Expressway (SCTEX). Manila North Tollways Corp. (MNTC) of infrastructure giant Metro Pacific Investments Corp. (MPIC) bagged the right to lease, manage, operate, and maintain the toll road in 2010 during the term of former President Gloria Macapagal Arroyo.
However, the Aquino administration suspended the deal and ordered MNTC to revise its offer several times.
This time, the Office of the President has ordered the Bases Conversion Development Authority (BCDA) to conduct a price challenge for the SCTEX after raising concern about the revenue sharing scheme.
Ayala and MPIC are partners in the Light Rail Manila Consortium (LRMC) that bagged the P65 billion contract to extend the Light Rail Transit line 1 (LRT-1) all the way to Niog in Bacoor, Cavite from Baclaran in Pasay City.
Francia said the company does not see SCTEX as a strategic project for the company unlike that of the P2 billion Muntinlupa – Cavite exchange (MCX) or formerly Daang Hari – South Luzon Expressway link, as well as the P35.4 billion Cavite – Laguna expressway (Calax).
“In this particular case I don’t that SCTEX is something that is strategic to us. Unlike MCX and Calax, those are strategic to us,” he added.
He pointed out that the company, through property giant Ayala Land Inc., is very interested in the P123 billion Laguna Lakeshore expressway dike project that involves a 700-hectare reclamation project.
“I think any real estate development company will view that as something attractive depending on economic consideration. It is a very promising proposition,” he said.
The largest PPP project of the Aquino administration has been rolled out by the Department of Public Works and Highways (DPWH).
The DPWH is also finalizing the parameters for the rebidding of the CALAX after getting an order from Malacañang due to the appeal filed by diversified conglomerate San Miguel Corp. (SMC).
DPWH undersecretary Rafael Yabut said in a text message that the agency is set to publish the Invitation to Bid this month and would encourage other companies to join the Malacañang-mandated rebidding based on the appeal filed by diversified conglomerate San Miguel Corp. (SMC).
“We may consider inviting all interested bidders to participate,” he said pointing out that the agency has yet to issue the final parameters.
Malacañang earlier ordered the DPWH to rebid the project after SMC filed an appeal with the Office of the President after the opening of the financial bids last June 13.
SMC questioned the decision of the DPWH to disqualify Optimal Infrastructure Development Inc. (OIDI) for allegedly submitting a non-compliant bid bond.
The tandem of conglomerate Ayala Corp. and listed Aboitiz Land Inc. through Team Orion submitted the highest bid of P11.659 billion followed by MP CALA Holdings Inc. of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) with P11.33 billion, and Malaysian-owned Alloy MTD Philippines with P922 million.
The DPWH did not open the bid of OIDI as it was disqualified from the bidding process. The diversified conglomerate opened its financial bid of P20.105 billion for the PPP project in the presence of the media in Manila Hotel.