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THE
Philippine government’s decision to alter the rules and
declare a bidding failure for the
Manila North Harbor’s
privatization could cast doubt on the transaction’s
transparency.
An
official of Harbour Centre Port Terminals Inc., who
asked not to be named, said that the Philippine Ports
Authority’s (PPA) action could have a “possible negative
public and legal backlash.”
Citing
the government procurement law (Republic Act 9184), the
agency earlier declared that the bidding could proceed
even with just a lone bidder.
The PPA
board decided Tuesday to ask other investors to
participate in the harbor’s privatization process, since
only one company—the joint venture between Harbour
Centre and Metro Pacific Investments Corp.—was qualified
to bid for the facility.
Publicly
listed Asian Terminals Inc. was reportedly declared
ineligible to bid for the port more than a week ago.
Meanwhile, since last year, the National Economic and
Development Authority (Neda), the Philippines’
socioeconomic planning body, had warned port officials
against a possible negotiated bid to privatize the North
Harbor, one of the country’s busiest but most
inefficient ports.
Instead,
the Neda called for a competitive bidding to get the
best tariff rates possible, a sentiment shared by the
Department of Finance. Both agencies have one seat each
at the PPA board.
Although
PPA general manager Oscar M. Sevilla earlier said that
Harbour Centre remains eligible for the next bidding,
the agency intends to have at least two entities slug it
out for the 25-year concession of the North Harbor. The
contract covers the management and development of the
port’s container terminal, general cargo terminal and
the passenger terminal complex, which will be considered
as one operational area.
Since no
new schedule has been set for the next bidding process,
the whole exercise may be delayed until next year.
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