DOTC still ironing out kinks in PPP project | Inquirer Business

DOTC still ironing out kinks in PPP project

/ 11:11 PM January 24, 2014

The Department of of Transportation and Communications is set to award its first public private partnership (PPP) deal, a P1.72-billion common ticketing system for Metro Manila’s railways, after denying Thursday an appeal by a disqualified bidder.

Michael Sagcal, a spokesperson for the transportation department, said they have turned down a motion for reconsideration filed by E-Trans Solutions Joint Venture, which was disqualified along with another consortium, Megawide-Suyen-Eurolink, during the technical evaluation phase.

“There are still some items we have to answer,” Sagcal said, when asked how soon the department could award the PPP deal, formally known as the Automated Fare Collection System.


He said awarding was expected late yesterday (Friday) or early next week.


Three financial proposals were opened last year, with a consortium led by Ayala Corp. and Metro Pacific Investments Corp. emerging as the front runner with an offer of P1.088 billion.

That amount is a premium paid to the government and comes on top of the cost to develop the project.

The matters the DOTC was planning to address included separate letters filed by E-Trans and the Embassy of Turkey given that Kentkart, a Turkish company, was part of E-Trans’ consortium, Sagcal said.

Sagcal reiterated that they had responded to E-Trans and that all rules and procedures were followed in making their decision.

Nevertheless, the Embassy of Turkey, in a Jan. 14 letter distributed to the media Thursday, said the disqualification of E-Trans would discourage investments in the Philippines.

“It is unfortunate that a competent bidder was treated in such manner,” Cezmi Besogul, commercial counselor, said in a letter addressed to Transportation Secretary Joseph Abaya.


“The damage is even worse for Kentkart, which has, prior to this episode, looked at the Philippines as a good investment destination where it would be treated professionally and with transparency with regard to government transaction,” the counselor said.

“The unfair treatment of E-Trans dampens the investment appetite for Turkish investors. May we therefore suggest that the Philippine government rectify the situation by considering the financial proposal submitted by E-Trans,” the letter read.

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TAGS: Business, DoTC, PPP, public-private partnership, Railways

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