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REPUBLIC OF THE PHILIPPINES DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS (DPWH) PREPARATORY SURVEY FOR EXPRESSWAY PROJECTS IN MEGA MANILA REGION NAIA EXPRESSWAY PROJECT (Phase II) FINAL REPORT APPENDIX-I DRAFT BID DOCUMNTS NOVEMBER 2012 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) CTI ENGINEERING INTERNATIONAL CO., LTD MITSUBISHI RESEARCH INSTITUTE, INC. ORIENTAL CONSULTANTS CO., LTD EI CR(3) METROPOLITAN EXPRESSWAY CO., LTD 12-144(2) TABLE OF CONTENTS Introduction Part I : Invitation to Bid Part II : Instructions to Bidders Part III : Minimum Performance Standards and Specifications Part IV : Draft Concession Agreement INTRODUCTION 1 BRIEF HISTORY OF BID DOCUMENTS PREPARATION Preparation of bid documents for the selection of the concessionaire started at the last quarter of 2010, which has prior to the start of this Study. Joint work force composed of the following was organized for the preparation of bid documents; Department of Public Works and Highways (DPWH) Department of Finance (DOF) National Economic Development Authority (NEDA) Public-Private Partnership Center (PPP Center) Office of the Solicitor General (OSG) Development Bank of the Philippines (DBP) International Finance Corporation (IFC) JICA Study Team In the process of preparation of bid documents, NEDA Board turned down this project, which resulted to the suspension of the preparation of bid documents. Thus, the bids document presented here is not the final one and is incomplete. However, these documents may be useful to know what the major issues for preparation of bid documents were. 2 COMPOSITION OF BID DOCUMENTS Draft bid documents are composed of the following parts; Part I : Invitation to Bid Part II : Instruction to Bidders Part III : Minimum Performance Standards and Specifications Part IV : Draft Concession Agreement Republic of the Philippines Department of Public Works and Highways BIDDING DOCUMENTS NAIA Expressway Project PART I: INVITATION TO BID 12 March 2011 INVITATION TO BID FOR NAIA EXPRESSWAY PROJECT The Department of Public Works and Highways (DPWH), through its Bids and Awards Committee (BAC) invites interested firms to bid for the NAIA Expressway Project under the Public-Private Partnership (PPP) scheme, using the Build-Transfer-Operate (BTO) modality, according to the Build-Operate-Transfer (BOT) Law under R.A. No. 6957, as amended by R.A. No. 7718, and its Implementing Rules and Regulations. Brief Scope of Work: a. Financing, Design, and Construction of Phase II of NAIA Expressway – 5.2 km of 4-lane viaduct from NAIA Terminal 3 to Diosdado Macapagal Boulevard, including at least 9 on- and off-ramps, interchange, and toll operating equipment. b. Operation and Maintenance (O&M) as a toll facility of the entire NAIA Expressway covering the previously constructed Phase I (from Skyway to Terminal 3) and Phase II. DPWH – Estimated Construction Cost (DECC): Php 12.238 billion Government Financial Support of GFS (Viability Gap Funding): Php 4.283 billion Concession Period: 35 years including Design and Construction Period of not more than 3 years. To be qualified for this Project, the Bidder must, among other things, (a) be at least 60% Filipino-owned corporation/consortium, (b) have constructed a similar Project costing at least 50% of the DECC and operated a similar facility, (c) have equity amounting to at least(excluding GFS and Government supervision) and access to Project loans for the balance of the net DECC. Award will be made to the Bidder which offers the lowest Bid Toll Rate for the Opening Year. The following are the indicative timelines for procurement: Issuance of Bidding Documents Starting date (first day of publication of this Invitation) Pre-Bid Conference Date (1 month after last day of publication of this Invitation) Deadline for Receipt of Bids 10 am, date (4 months after last day of publication of this Invitation) Opening of Bids 2pm, date (same day as Deadline for Receipt of Bids) Notice of Award Date (1 month after Opening of Bids) Prospective bidders may download the Bidding Documents (BDs) – including Instructions to Bidders, Minimum Performance Standards and Specifications, and Draft Concession Agreement – from the DPWH website www.dpwh.gov.ph . The BAC will issue hard copies of the BDs at the BAC Secretariat, 4th Floor, DPWH Bldg., Bonifacio Drive, Port Area, Manila, upon payment of a non-refundable fee of Php _________. The DPWH reserves the right to accept or reject any bid and to annul the bidding process anytime before contract award, without incurring any liability to the affected bidders. Name and Signature of BAC Chairman Dates of Publication: _______________ Newspaper: ______________________ Republic of the Philippines Department of Public Works and Highways BIDDING DOCUMENTS NAIA Expressway Project PART II: INSTRUCTIONS TO BIDDERS PART 11: INSTYRUCTION TO BIDDER TABLE OF CONTENTS Page SECTION 1.0 DEFINITION OF TERMS 6 SECTION 2.0 INTRODUCTION 10 2.1 Background 10 2.2 Brief Description of Bidding Process 11 SECTION 3.0 THE PROJECT 11 3.1 NAIA Expressway 11 3.2 Scope of Work under the Project 12 3.3 Contractual Framework 12 3.4 Bidding Documents 13 3.5 Indicative Milestone Dates 13 SECTION 4.0 QUALIFICATION CRITERIA 14 4.1 Legal Eligibility 14 4.2 Technical Capability 15 4.3 Financial Capability 17 SECTION 5.0 DOCUMENTS COMPRISING THE BID 17 5.1 Contents of Bid 17 5.2 Bid Letter including Bid Security 17 5.3 Bid Security 18 5.4 Qualification Documents 18 5.5 Technical Proposal 20 5.6 Financial Proposal 22 5.7 Validity of Bids 24 SECTION 6.0 SUBMISSION AND OPENING OF BIDS 24 6.1 Documentary Requirements 24 6.2 Deadline and Place of Bid Submission 24 6.3 Pre-Bid Conference 24 6.4 Modifications/ Substitution/ Withdrawal of Bids 25 6.5 Rejection of Bids 25 6.6 Opening and Preliminary Examination of Bids 25 SECTION 7.0 EVALUATION OF BIDS 26 7.1 Detailed Evaluation of Bid Letter including Bid Security 26 7.2 Detailed Evaluation of Qualification Requirements 26 Republic of the Philippines DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS NAIA Expressway Project INSTRUCTIONS TO PROSPECTIVE BIDDERS 1. Introduction The Department of Public Works and Highways (DPWH) invites Prospective Bidders to apply to pre-qualify to bid to finance, design, construct, operate, and maintain the Ninoy Aquino International Airport (NAIA) Expressway Project. The Project consists of: a. The financing, design, and construction of: (i) Adjustment works on the 0.7 km six-lane viaduct from the Metro Manila Skyway along Sales Road to NAIA Terminal 3. (ii) A 4.6 km 4-lane viaduct extension from NAIA Terminal 3 to Roxas Boulevard, over the existing roads of Sales Road, Andrews Avenue, Domestic Road, and NAIA Road, including on-and off ramps, toll plazas, and toll operating equipment. b. The Operation and Maintenance of the viaduct consisting of these two sections from the Metro Manila Skyway to Roxas Boulevard as a single toll expressway. The documents which describe the Project and govern the process to be followed for pre- qualification are: a. The Invitation to Pre-Qualify to Bid b. These Instructions to Prospective Bidders and its Annexes c. The Information Memorandum References to “Invitation Documents” shall mean these three documents collectively, and any supplemental notices and bid bulletins issued by the SBAC from the date of the first publication of the Invitation to Pre-Qualify to Bid until the Qualification Document Submission Date 2. The Special Bids and Awards Committee The Special Bids and Awards Committee for Public Private Partnership Projects of the DPWH (SBAC) created by DPWH Special Order No. 68 dated 28 March 2011 shall administer the process of pre-qualification and bidding for the project. 3. Transaction Advisors Page 1 of 57 The Development Bank of the Philippines (DBP) and the International Finance Corporation (IFC), the private sector arm of the World Bank Group, have been appointed by the DPWH to act as its Transaction Advisors for the international competitive public bidding for the Project. As Transaction Advisors, the DBP and IFC have been engaged to assist the DPWH in undertaking and ensuring a fair, transparent and competitive selection process that will mobilize private sector participation in the implementation of the Project. The assistance of the DBP and IFC covers all Project pre-investment activities including due diligence review, transaction structuring, marketing and promotion, contract preparation, development of documents for the Bidding Process, bidding and evaluation, and transaction award.. Supporting the DBP and IFC in their advisory work are a team of international legal and technical services firms composed of Hogan Lovells Lee & Lee and Leigh Fisher respectively, and individual local legal consultants. 4. Outline of the Bidding Process The international competitive public bidding for the Project will be conducted in accordance with the procurement rules and procedures for public bidding set under the Philippine BOT Law (Republic Act No. 6957, as amended by Republic Act No. 7718) and its 2006 Revised Implementing Rules and Regulations (Revised IRR), the applicable provisions of which are incorporated herein by reference. The general procedure for the Bidding will be as follows: a. DPWH will conduct Pre-Qualification of Prospective Bidders. Prospective Bidders will be asked to apply to pre-qualify to bid by submitting their Qualification Documents, as described in greater detail in this document, on 13 September 2011, the Qualification Documents Submission Date. After reviewing the documents, the SBAC will determine which Prospective Bidders fulfill the requirements to pre-qualify, and inform all Prospective Bidders who are pre- qualified. Only Pre-Qualified Bidders will be invited and allowed to submit a Bid for the Project. b. After Pre-Qualification is completed, the SBAC will announce the Bid Proposals Submission Date, which will be no less than 120 days after Prospective Bidders are notified of their pre-qualification. Pre-Qualified Bidders will be asked to bid for the Project by submitting their Bid Proposals- which will include both Technical and Financial Proposals, a Bid Security, as well as other supporting documents- on this date.