Doubts raised on P123-B dike project

Map of Laguna Lakeshore expressway dpwh website

Doubts are being raised over the viability of the P123-billion Laguna Lakeshore Expressway Dike public private partnership (PPP) deal by a potential bidder that is backed by four of the Philippines’ biggest conglomerates and builders.

A spokesperson of Tri-dent Infrastructure and Develop-ment Corp. noted the concern after the Department of Public Works and Highways decided to extend the bid deadline of the PPP deal, which combines a tollroad, flood-control dike and land reclamation project along Laguna Lake, by only two months to Jan. 7, 2016.

The group, also known as Team Trident, said that more information and time was needed to properly evaluate the project, one of the biggest PPP deals on offer.

Team Trident is made up of Ayala Land Inc., Henry Sy’s SM Prime Holdings Inc., Aboitiz Equity Ventures and tycoon Andrew Tan’s Megaworld Corp. It is one of three groups prequalifed to bid for the Laguna Lakeshore Expressway Dike project. The other two are San Miguel Corp. and Alloy Pavi Hanshin LLEDP consortium, comprised of Malaysia’s MTD Group, South Korea’s Hanshin and the family of former Sen. Manuel Villar Jr.

“The revised Jan. 7, 2016, deadline is not realistic for such a complicated project,” Román Azanza III, Aboitiz first vice president for business development, told the Inquirer.

“As it stands, the current deal structure is unviable while crucial information necessary to conduct proper due diligence remains unavailable to bidders,” he added, but declined to elaborate further.

The DPWH earlier signaled that it was moving the deadline to address certain regulatory and legal issues clouding the project.

This includes securing a presidential proclamation that would allow the winning bidder to develop and sell reclaimed land on Laguna Bay. A draft for the proclamation was submitted to the Office of the President last Aug. 26, information on the DPWH’s website showed.

Raoul Eduardo Romulo, chief financial officer and treasury head of San Miguel Holdings Corp., said the group continued to evaluate the PPP deal “objectively.”

Isaac David, president of MTD Philippines, said they remained interested in the project, although it would depend on the government delivering assurances via the pending presidential proclamation.

Builders are keen on the Laguna Lakeshore Expressway Dike given the huge size of land, about 700 hectares, that will be reclaimed in Laguna Lake in a portion near the Taguig, Parañaque and Muntinlupa areas of Metro Manila. The land will comprise a total of seven 100-hectare islands in Laguna Lake about 150 meters away from the shoreline, the PPP Center had said.