DID the order that MalacaĖang recently issued to the Department of Public Works and Highways actually serve the Cavite-Laguna Expressway (Calax) to the San Miguel group on the proverbial silver platter?
The project was supposed to have been awarded to the winning bidder five months ago. The bid was officially won by the consortium formed by the Ayala and Aboitiz groups. The award, however, was deferred after the San Miguel group protested its disqualification from the initial auction and appealed to Malacañang.
Last Saturday this paper reported that President Aquino had finally decided to put the Calax project up for rebidding, despite serious concerns that this move could cast major doubts on the credibility and integrity of the government’s Public-Private Partnership (PPP) Program.
The news did not come as a surprise, as the President had announced his intentions early on. On more than one occasion, he said he planned to rebid the project, which was won through an auction by Team Orion, the name of the Ayala- Aboitiz consortium.
He also said he was not inclined to forego the alleged P20-billion tender of disqualified bidder San Miguel group, which the latter bared outside the bidding process and venue.
In a way, the President admitted that it was possible that the claim of a superior bid may just be an illusion, after all. With the rebidding, the President is risking a potential legacy project and the credibility of the PPP Program for a bid premium that he himself doubts.
Also, now that the rebidding has been set, the view is that Calax is “in the bag,” as far as the San Miguel group is concerned. By bending backward and bending the rules, the government appears to have practically handed over the project to the originally disqualified bidder.
There are two reasons for this prevailing view. First, chances are slim that there would be other serious participants in the rebidding. It’s unlikely that the Aboitiz and Ayala groups would take part in the rebidding for a project they already won, and which appears to have been literally snatched from their hands by the decision to rebid it.
It’s also unlikely that the Metro Pacific Investments Corp. (MPIC), the other major qualified bidder in the original bidding, would take part. It is doubtful that the likes of the MPIC would raise the original premium it tendered in a game of trying to outbid an earlier disqualified bidder.
There are also doubts that the rebidding would entice local and international business interests, which have already expressed reservation about any government move that would bend established bidding rules.
Other than San Miguel, the only possible firms that would take the risk of joining the rebidding are those affiliated with the Philippine Chamber of Commerce and Industry (PCCI). This was the only group that backed the President’s inclination to rebid the Calax, saying the move would allow the government to get more money out of the project.
Unfortunately, the announcement about the Calax rebidding made no mention of a floor price. The idea of a floor price that’s equivalent to the disqualified bidder’s claim of a P20-billion premium was apparently the sole basis of the PCCI’s view that the rebidding would fetch the government a heftier gain from the project.
Minus that floor price, even San Miguel can tender lower bids than those offered in the original bidding.
This brings us to the second reason the project is practically in the bag for San Miguel.
In the absence of other serious bidders, San Miguel can now either tender a bid equivalent to what it originally claimed was its offer in the original bidding, or go for something more comfortable to its shareholders.
Without other serious bidders, San Miguel can practically bag the project for a song.
So, the Calax is now “in the bag,” as far as San Miguel is concerned.
The question, though, is this: Is the P20 billion, which the government wanted to get its hands on following the disqualified bidder’s claim of a superior offer, also in the bag?
Maybe yes, maybe no.
That really depends on how serious the challenge would be to San Miguel’s tender.
We hope that there would be serious bidders other than the disqualified bidder, for whom the government bent backward. Otherwise, the country will be left holding an empty bag.
CSFI trade fair showcases local products, artistry
HERE’S good news for early Christmas shoppers: The Congressional Spouses Foundation Inc. (CSFI) will showcase the best Philippine products with another National Livelihood Trade Fair, to be held at the Megatrade Hall 2, Building B, SM Megamall, Mandaluyong City, from November 27 to 30.
Dubbed “Kabuhayan 2014,” the four-day trade fair aims to promote Filipino small and medium entrepreneurs; and exhibit Philippine culture and traditions through arts and crafts, fashion and culinary items, and other specialty products by Filipino artisans.
The biggest sponsor of this event is the Philippine Amusement and Gaming Corp. (Pagcor).
CSFI and Pagcor have teamed up to make sure that the trade fair will make available to buyers in Metro Manila the diverse products of even the remotest barangays in the country.
Vice Mayor Joy Belmonte of Quezon City, also CSFI chairman and president, said the trade fair offers a great opportunity to promote quality local products from different regions of the country.
“Filipinos are genuinely creative, and they put their heart into everything they do. It is just enough to say that what you will see in the bazaar are only the best,” Belmonte said.
With the onset of the Christmas season, the trade fair will also offer unique and affordable gifts to early shoppers.
Among the exquisite products to be sold are native delicacies from the different regions; distillery products that are on a par with foreign blends; bags; shoes; dried fish; fresh fruits; jewelry; woven products; and other handicrafts that demonstrate Filipino artistry at its finest.
Speaker Feliciano Belmonte Jr., Sen. Paolo Benigno “Bam” Aquino IV and Pagcor Chairman Cristino Naguiat Jr. are expected to grace the opening ceremony, which will be attended by members of the House of Representatives and CSFI.
E-mail: ernhil@yahoo.com.