PPP Center denies bias in ticket system bidding

The Public-Private Partnership Center has refuted claims of alleged lack of procedural transparency and bias for the “big fish” made by a disqualified bidder for the LRT-MRT single ticketing system.

The E-Trans consortium, one of the bidders for the automated fare collection system (AFCS) project offered under the PPP framework, earlier appealed to the government to open its financial proposal.

This was after the Department of Transportation and Communications (DOTC) announced that it would consider the bids only of the SM and Ayala-Metro Pacific consortia.

“The bidding process for the AFCS was in accordance with the BOT (Build-Transfer-Operate) Law, its IRR (implementing rules and regulations) and the bid rules, which were made available to all interested parties during pre-qualification, and to all pre-qualified bidders post pre-qualification,” said PPP Center Executive Director Cosette Canilao in an e-mail to the Inquirer.

“I also want to emphasize that bidders were given ample time to raise queries, clarifications and even suggestions. All of those were responded to by either bid bulletins which were made available to all and revisions to the terms of the concession agreement and other bid documents … All bidders submitted bids which is a signal that they all agreed and accepted the final terms of the agreement and the bidding rules and procedures,” she added.

E-Trans earlier said it felt that the DOTC’s consideration of only the SM and Ayala-Metro Pacific consortia had withheld crucial information from taxpayers and the intended beneficiaries of the AFCS: The one million commuters who use the system every day.

The DOTC did not open E-Trans’ financial bid after its technical proposal was rated as “failed” in an evaluation process that it was questioning.

“No information was withheld from the taxpayers and the intended beneficiaries of the AFCS. All actions taken by the government are in compliance with all set rules and regulations, anchored in transparency and a level playing field,” the PPP Center said in a matrix that sought to refute each of E-Trans’ arguments.

On E-Trans’ claim of lack of procedural transparency behind this rejection, the PPP Center said all actions taken by the government were in compliance “with all set rules and regulations, anchored in transparency and a level playing field.”

As to the concerns over the application of unwritten rules in the DOTC’s assessment of technical qualifications, as well as the waiving of other rules that resulted in the qualification of the final two bidders, the PPP Center said the technical evaluation for all proposals was “well-documented” and the reasons for passing and failing were “clear” and officially relayed to all concerned parties.

E-Trans is a consortium of information technology and financial companies, and is a partner of Kentkart, a leading provider of AFCS services in countries across Europe and the Middle East.

The consortium led by Tera Investments includes Gotianun-led Eastwest Banking Corp. and has financial backing from JKTC Equities.