1St PPP Project Bidding: Successful
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INFRASTRUCTURE 49 1st PPP project bidding: Successful After a delayed start, the banner program of the Aquino administration, the public-private partnership (PPP) infrastructure program, has been fi nally launched with the successful bidding of the 4-kilometer Daang Hari-South Luzon Expressway road link project. he 1.956-billion Daang Hari (King’s Road) – South Luzon Expressway (SLEX) road link project has been Tawarded to Ayala Corporation after it submitted the highest bid of P902 million for the 30-year contract to build, operate and maintain the 4-kilometer road project. There were only 2 bidders competing for the road project – the Ayala Corporation partnered with the Spanish engineering fi rm, Getinsa; and the South Expressway Link consortium consisting of San Miguel Corp’s Optimal Infrastructure Development, Inc, Star Infrastructure Development Corp. and Citra Group’s CLGP Philippine Holdings, Inc. The joint venture group of D.M. Consunji Inc. and C.M. Pancho Construction Inc., the only other pre-qualifi ed participant, withdrew from submitting a fi nal bid. There were initially 20 individual fi rms and groups that submitted expressions of interest for the project. Ayala Corporation’s bid of P902 million was superior to acquisition will be completed 6 months after the signing of the P608- million bid submitted by the South Expressway the concession agreement and that commercial operations Link consortium. The government had earlier set a P371- will happen earlier than the expected timeline of August 2013. million fl oor price for the project. The Daang Hari-SLEX The project will complement the Cavite-Laguna East-West road link is the fi rst project to be successfully awarded Highway (CALA Expressway), which is also included in the to the private sector under the Aquino administration’s priority infrastructure PPP program of the national government. flagship public-private partnership (PPP) program. The Daang-Hari-SLEX road link is a strategic component of the Following the successful bidding, the national government Metro Manila Urban Expressway Network Master Plan intended announced that it expects the project proponent to start and to provide a high-standard highway within a 200-kilometer fi nish construction in 2012 and commercial operations to begin radius of Metro Manila. It represents stage 1 of the plan to in 1H2013. However, Ayala Corporation’s own schedule shows complete the circumferential 6 (C-6) road (see project map). that civil works completion will likely be in July 2013. The The road project has long been in the “wish-list” of the DPWH discrepancy in the government and project proponent’s timeline but was not initially included in the priority projects for 2011 was due to the delay in the signing of concession agreement roll-out when the national government launched the PPP program (now expected to happen in the last week of January 2012) last November 2010. The non-inclusion of the road project in the and the right-of-way (ROW) acquisition. Nevertheless, the initial list was due to “project ownership” issues. Prior to the PPP implementing agency of the project, the Department of Public bidding, the contract to construct, operate and maintain the Daang- Works and Highways (DPWH), remains optimistic that ROW Hari-SLEX road link was with Alabang Sto.Tomas Development Philippine Alert December 2011 50 INFRASTRUCTURE PROJECT TIMELINE Publication of Invitation to Participate and Bid July 20, 27 and August 3, 2011 Pre-qualifi cation (PQ) Conference August 8, 2011 Submission and Opening of PQ documents September 19, 2011 Notice of Pre-qualifi cation September 30, 2011 Pre-bid Conference October 7, 2011 One-on-One meeting with pre-qualifi ed bidders October 18-20, 2011 One-on-One meeting with pre-qualifi ed bidders November 22, 2011 Bid Submission Date of Technical Proposals December 12, 2011 Evaluation of Technical Proposals December 13, 2011 Notifi cation of Bidders December 14, 2011 Opening and Evaluation of Financial Proposals December 15, 2011 Post Qualifi cation December 16, 2011 Endorsement of most responsive post-qualifi ed bidder December 17, 2011 Issuance of Notice of Award December 22, 2011 Signing of Concession Agreement* January 2012 (last week) Design* February 2012 to May 2012 Construction* June 2012 to July 2013 Commercial Operation* August 2013 Compiled by: WBF *- estimates based on interviews and press releases. THE 2 SEGMENTS OF DAANG-HARI SLEX LINK Total Length: 2.3 kilometers, will start at Km 0 at the Daang Hari–Daang Reyna junction I in Bacoor, Cavite, running generally eastward, Segment 1 passing through the National Bilibid Prison Reservation, and ending at Km 2+300. Civil Works Schedule: June 2012 – December 2012 Total Length: of 1.7 kilometers, will start at the end point of segment 1, Km 2+300, and will end at approximately Km 4+000 to Segment 2 connect with the Susana Heights interchange of the SLEX. Civil Works Schedule: December 2012 –July 2013 PROPOSED TOLL RATES FOR DAANG-HARI-SLEX Class 1 vehicles (jeepneys, pickup trucks, vans and cars) P 17.00 Class 2 vehicles ( light trucks and buses) P 34.00 Class 3 vehicles ( trailers and large trucks) P 51.00 DAANG HARI-SLEX-C6 STAGE 1 & 2 PROJECT Philippine Alert December 2011 INFRASTRUCTURE 51 WHAT IT’S ALL ABOUT: THE DAAN-HARI-SLEX LINK PROJECT Project Description and rationale: a new 4 kilometer, 4-lane paved toll road that will pass through the New Bilibid Prison reservation that will connect Bacoor, Cavite to the South Luzon Expressway (SLEX) thru Susana Heights area. The linkage will complement the proposed Cavite-Laguna Expressway (CALA Expressway, also part of the PPP program) and will address the additional requirement for access between Metro Manila and Cavite where rapid urbanization and worsening traffi c is currently being experienced. Project Components: 2 overpasses; 4 local roads; 1 undercrossing; 1 rotunda; and drainage structures. Implementing Agency: Department of Public Works and Highways (DPWH) Mode of procurement: Solicited Total Project Cost: Php 1.956 Billion (US$ 43.5 Million) Government Support: ROW P 177.3 M IC P 10.635 M New Bridge Across SLEX P 70.5 M Expansion of Toll Plaza P 30.0 M TOTAL P 288.435 M Sources: DPWH and PPP Center Inc.(ASDI). The ASDI is a company owned by 2 government- has now included in its public-private partnership (PPP) program. owned and controlled corporations (GOCCs), the Philippine However, the various government agencies (the Department National Construction Corp. (PNCC) with 51% ownership; and the of Transportation and Communication and the Mactan-Cebu National Development Corporation (NDC) with 29% ownership. International Airport Authority) involved in the implementation Both PNCC and NDC had hesitated to relinquish ownership of the project have yet to decide exactly what to do with it of the project to the DPWH for inclusion in the PPP program. – whether to sell the existing lot and facilities and move the The ASDI had spent P325 million for the initial road works. entire airport operations to the Municipality of Cordova where Once completed, the road project will decongest traffi c in parts there is more space for future expansion (see map) and then offer of Cavite, Las Piñas and Muntinlupa and will reduce the road the project as a build-operate-transfer (BOT) project; or to stay distance from Daang Hari to the Alabang viaduct by 3 kilometers. in the current location, upgrade the existing facilities through The project will also complement the redevelopment plan for PPP or offi cial development assistance (ODA) fi nancing, the New Bilibid Prison (NBP) (see box for more project details). then privatize operation and maintenance of the facility. For certain companies that have expressed interest (e.g. San Miguel Corporation and Metro Pacifi c Investments Corporation) Keen interest in Mactan-Cebu Int’l Airport whatever way is good. But for some, property developers such as Ayala Land, Inc.; Robinsons Land Inc.; and SM Holdings Project Inc., they prefer the option that requires the transfer of location to have the chance of purchasing the real estate where the ..but the government is uncertain what to do with it. Several of current airport is built for development to other commercial use. the country’s biggest property developers and infrastructure If the government decides to relocate the critical hub to fi rms are keeping a close eye on the Mactan-Cebu Inter- Cordova, the government will likely follow the proposed plan national airport project that has been tentatively scheduled involving the transfer of the Ninoy Aquino International Airport for bidding in 1Q2012. However, the government is unsure to Clark (the money earned from the sale of the old site will be what to do with the project. used to partially fi nance the transfer of operations to the new site). If the government decides to stay, it will follow the same There are several companies eyeing the $180 million pattern it has implemented in the privatization of the Caticlan Mactan-Cebu International Airport Development since it was Airport (currently operated and maintained by San Miguel announced in November 2009 and that the national government Corporation). The government has to decide soon since it has Philippine Alert December 2011 52 INFRASTRUCTURE PROJECT DETAILS OF THE MACTAN-CEBU AIRPORT Project Description/Rationale: The project involves the redevelopment and upgrading of a passenger terminal building and the essential facilities to cater to international and domestic airline passenger demand, and a new cargo terminal. Due