Palace reviews SMC appeal on Calax bid

Cavite-Laguna Expressway Route Map PHOTO from www.dpwh.gov.ph

President Aquino has ordered Palace lawyers to look into the appeal of San Miguel Corp. (SMC) for the government to reconsider its failed bid for the P35.4-billion Cavite-Laguna Expressway (Calax) project.

In accordance with Administrative Order No. 22, the Office of the Deputy Executive Secretary for Legal Affairs is now reviewing the appeal filed by SMC’s Optimal Infrastructure Development Inc., Communications Secretary Herminio Coloma said Thursday.

“The study is now being conducted. Let’s just wait for the recommendation and action regarding [the matter],” Coloma said in Filipino during a briefing.

Optimal Infrastructure is questioning the Department of Public Works and Highway’s (DPWH) decision to disqualify its P20.1-billion bid to construct the road project under a public-private partnership (PPP) agreement.

The DPWH’s special bids and awards committee took issue over the company’s P355-million bid security, which fell four days short of the required 180 days.

Optimal Infrastructure’s disqualification came even after its issuing bank, ANZ of Australia, clarified the matter upon the DPWH’s request.

Because of the disqualification, Optimal Infrastructure’s bid, which turned out to be the highest offer, was never opened last June 13. This made Team Orion of the Ayala and Aboitiz Groups as the front-runner, with its bid of P11.659 billion.

Team Orion edged out two other groups, Metro Pacific Tollways of businessman Manuel V. Pangilinan and Malaysia’s MTD Group.

The project drew premium bids, which comes on top of the construction cost, from all four pre-qualified groups, which cited the tollroad’s attractive prospects.

The project is coveted because of the way it combines with the existing businesses of the bidders.

For San Miguel, Calax would link up with its South Luzon Expressway as well as the Manila Cavite Expressway of Metro Pacific Investments. For the Ayala Group, its vast landholdings in the south will benefit from a new tollroad.

Optimal Infrastructure’s appeal to President Aquino is unprecedented for a PPP project of this scale.

DPWH earlier indicated its intention to award the project as early as June, but the current appeal process would delay its implementation.