President Aquino on Tuesday reaffirmed his earlier “inclination” to rebid the stalled P35.42-billion Cavite-Laguna Expressway
(Calax) deal, despite serious mis-
givings aired by local and foreign trade groups after his pronouncement.
“We are obligated to get the best deal for our people,” Mr. Aquino told reporters in an interview at the Philippine Embassy, after attending the Asia-Pacific Economic Cooperation (Apec) forum in Beijing.
President Aquino cited as significant the P8.4-billion difference between the winning bid of P11.65 billion submitted by Team Orion of the Ayala-Aboitiz group and disqualified bidder San Miguel Corp.-Optimal Infrastructure Development Inc.’s (SMC-OIDI) P20.1-billion premium offer. He said the amount could be used to fund the construction of government infrastructure, such as socialized housing.
Asked about the negative reactions from the concerned trade groups that a rebidding could
dampen investors confidence in future public-private partnerships projects, Mr. Aquino said he was willing to take the criticisms, rather than be blamed by the people.
“Mamimili na ako kung sino ang magagalit sa akin. Siguro maganda nang magalit sila, kaysa taong-
bayan,” President Aquino said, acknowledging that business leaders have aired opposition to rebid the Calax toll-road project, even as both the Ayala-Aboitiz group and the SMC-OIDI gave separate assurances they would not go to court if Mr. Aquino decides to go ahead
with a rebid.
But while worried trade groups, including the Makati Business Club and the Joint Foreign Chambers, voiced concerns over the backlash of the rebidding, the Philippine Chamber of Commerce and Industry opted to support Mr. Aquino’s inclination to rebid Calax, saying this would “maximize economic benefits” the state would reap from the toll-road project, given the estimated P8.45 billion it would gain from a fresh auction.
Other business leaders also expressed opposition to the Calax rebidding plan, warning this could lead to higher cost of the project, and “consequently higher toll.”
Despite the presidential backing, Malacañang officials earlier admitted to the BusinessMirror that the Department of Public Works and Highways is yet to fix a date for the rebidding. Team Orion urged President Aquino to carefully consider the implications of his decision.
“We hope that a decision will be made soon, and remain hopeful that the President will carefully consider the DPWH decision to award,” Ayala Corp. Managing Director John Eric Francia said.
With Jae Denise Adolfo
4 comments
As usual, Noynoy’s answer is geared towards short-term gains typical of the populism that has characterized his administration. Assuming that a rebidding will bring the same benefits he is hanging on to (remember, no one outside of SMC has seen their technical bid, which may cancel out any such savings), there is still the long-term loss from decreased investor confidence. Despite our increased ranking in the World bank’s publication Ease of Doing Business in 2015, the Philippines decreased in the category of enforcing contracts and protecting investors. Those categories will take a further hit after this.
Here we go again! another vital infrastructure project stalled, due to changing rules and unstable policy here in our country. — No wonder PH laggard in terms of Foreign investment in South East Asia.
You’re using us to cover up your own ass, there’s no such thing as for the greater good because if you’re really want us to be in favor of you, you wouldn’t prolonged our agony and may I add this up you will get our favor if we think that you’ve made the right decision but sorry to disappoint you Mr. President but this is not the smartest
decision you’ll make. If you think dragging our name “the people” will
change everything it won’t, it only proves one thing and that is your
just doing this so you and your clan can make more profit out of this
project.
He’d rather have the business sector get mad at him than the public – nice choice of words Mr. President. Guess what? The public is already DISGUSTED with how you handle everything under your wings. Numerous delays with the CALAX bid already wasted enough time for the private sector and the public commuters altogether. We can all see right through his intentions, the “extra income” from the bid will not be used for additional government projects. Let’s get real, we know where that extra income will go.