PPP projects move forward

TWO TRANSPORTATION projects under the Aquino administration’s flagship public-private partnership (PPP) program are moving forward, with bids for one to be submitted today and the other expected to be rolled out later this week.

The auction for the P15.86-billion Ninoy Aquino International Airport Expressway (NAIA) Phase 2 will push through today, PPP Center Executive Director Cosette V. Canilao said during the weekend.

The submission of bids was originally set for Feb. 26 but was moved as interested parties asked for more time.

A contract will be awarded in May, Ms. Canilao said, adding that the project is “expected to be completed in 2015.”

The NAIA Expressway project involves the construction of a 7.75-kilometer elevated road that will connect the airport in Pasay City to the state-run Bagong Nayong Pilipino Entertainment City in Parañaque City.

Four groups prequalified to bid last October: the Ayala Corp.-led ACI consortium, IL & FS Transportation Networks Ltd., Manila North Tollways Corp. and Optimal Development Infrastructure, Inc. led by San Miguel Corp.

Another road project, meanwhile, will be offered to investors this week, Ms. Canilao said.

“The ITPB (Invitation to pre-qualify and bid) of CALA-Ex (Cavite-Laguna Expressway) will be published next week (this week),” the PPP Center chief said in a text message last Friday.

Overall, the project involves the construction of a four-lane, 47-km road that will connect the Manila-Cavite and South Luzon expressways. The portion to be bid out is for the design and construction of a 36-km expressway from Kawit, Cavite to Sta. Rosa, Laguna, estimated to cost P35.5 billion.

The remaining 11-km stretch from Sta. Rosa to the Mamplasan exit in Laguna, expected to cost P21.01 billion, will be financed via official development assistance. The operation and maintenance of the entire expressway will be bid out to the private sector.

A successful auction of the NAIA Expressway project would make it the third PPP deal to be awarded by the Aquino administration, whose flagship infrastructure program has been hit by delays -- blamed on the need for extensive reviews -- since its launch in late 2010.

So far, only the P1.96-billion Daang Hari-South Luzon Expressway Link Road Project -- bagged by Ayala Corp. in December 2011 -- and the P16.42-billion PPP School Infrastructure Project Phase One -- awarded to the Citicore Holdings Investment, Inc.-Megawide Construction Corp., Inc. and BF Corp.-Riverbanks Development Corp. consortiums last year -- have been contracted.

source:  Businessworld 

Seven groups interested in airport PPP

SEVEN GROUPS yesterday formally expressed their interest in an airport public-private partnership (PPP) project, the first to be offered by the Aquino administration under its flagship infrastructure program.

Prequalification documents for a contract to expand and operate the Mactan-Cebu International Airport were submitted to the Trade department, which identified the prospective bidders as:

• The MPIC-JG Consortium led by MPIC-JGS Airport Holdings Inc. -- a joint venture between Metro Pacific Investments Corp. and JG Summit Holdings, Inc. French airport operator Aeroports De Lyon was named as its operation and maintenance (O&M) partner.

• AAA Airport Partners, which is led by the Ayala-Aboitiz joint venture A2 Airport Partners with Texas-based ADC & HAS Airport Worldwide, Inc. Its O&M partner is Houston Airport System.

• Filinvest-CAI Consortium, led by Filinvest Development Corp. with Changi Airports Mena Pte. Ltd. The group appointed Changi Airport Saudi Ltd. as its O&M partner.

• San Miguel-Incheon Airport Consortium, led by Incheon International Airport Corp. with San Miguel Corp.’s Optimal Infrastructure Development, Inc., Mactan Capitana Holdings, Inc. and Skylake Incuvest & Co. Incheon will also act as the O&M partner.

• First Philippine Airports, led by First Philippine Holdings, Inc. with Infratil Asia, Ltd. Its O&M partners are Wellington International Airport Ltd., NZ Airports Ltd., and Infratil Ltd.

• Premier Airport Group composed of SM Investments Corp., Citadel Holdings, Inc., Zurich Airport International AG and Prospector Investments Holdings, Inc. Switzerland-based Flughafen Zurich AG is the O&M partner.

• GMR Infrastructure and Megawide Consortium, led by Megawide Construction Corp. together with India-based GMR Infrastructure Ltd. The consortium tapped Delhi International Airport (P) Ltd. and GMR Hyderabad International Airport Ltd. as its O&M partners.

Their submissions will be examined over the next 20 days, Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla told reporters.

“We will announce the prequalified firms on May 17,” added Mr. Lotilla, who is also the chairman of the bidding committee.

The P17.5-billion Mactan-Cebu International Airport project covers the construction of a new terminal, rehabilitation of the existing facility and a 20-year O&M contract.

The legal, financial and technical qualifications set by the government include a minimum net worth of P2 billion and airport O&M experience. Airline-ralated firms were also restricted from owning more than 33% of the participating consortium.

Based on the project timetable, prequalified firms should submit their bids on Aug. 2. The technical proposal will be immediately evaluated, while the financial offer will be will be opened on Aug. 23. A notice of award will be issued on Sept. 17, to be followed by an Oct. 4 contract signing.

Officials said they were satisfied with the number of prospective bidders.

“[S]even is actually an excellent number,” Mr. Lotilla said. “It is already an indicator that there is a wide representation of participants.”

Cosette V. Canilao, executive director of the PPP Center, said: “We are happy with the turnout. That only validates the procedures adopted by the DoTC (Department of Transportation and Communications).”

She dismissed concerns that foreign investor interest in the PPP program was weak, explaining that the limited participation in the P15.86-billion Ninoy Aquino International Airport Expressway auction earlier this month was due to specialized interests.

San Miguel and Manila North Tollways Corp., which operate toll roads to which the NAIA expressway will link, were the only bidders for the project. San Miguel, which offered an P11 billion upfront payment on top of the project cost, has been named the winner.

The Mactan-Cebu airport deal is the first airport project to be offered under the PPP program launched in late 2010. The government has so far rolled out 10 projects but to date only three have been auctioned off.

Previously awarded were the P1.96-billion Daang Hari-Southern Luzon Expressway link, which went to Ayala Corp. in December 2011, and the P16.42-billion School Infrastructure Project Phase I that was bagged last year by the BF Corp.-Riverbanks Development Corp. and the Citicore Investments Holdings, Inc.-Megawide consortiums. -- Cliff Harvey C. Venzon

source:  Businessworld, April 22, 2013
 

SMC wins NAIA expressway with surprising P11B offer...

San Miguel Corp. won the government bidding yesterday for an expressway project that will connect Ninoy Aquino International Airport’s three terminals to the burgeoning Manila Bay casino and resorts area called PAGCOR City.

A San Miguel subsidiary, Optimal Infrastructure Development Corp., submitted a winning bid of P11 billion for the Public Private Partnership project.

The only other bid, a low P305 million, came from Manila North Tollway Corp., a subsidiary of Metro Pacific Group of Manuel V. Pangilinan.

Public Works and Highways Secretary Rogelio L. Singson expressed surprise at the SMC Group’s bid. He said the government will get P11 billion as upfront payment on the top of the estimated P15 billion construction cost for the project.

“We were very surprised because we’re struggling with the P6 billion subsidy we had to extend for the locators [of the tourism-oriented development at Manila Bay, one of the leading beneficiaries of the NAIA expressway],” Singson said.

“Now they say they don’t need the subsidy and they are willing to pay for P 11 billion [upfront payment],” Singson said.

The PAGCOR locators and licensees were supposed to provide an Infrastructure Support Fund (ISF) in the amount of P6.5 billion for the construction of the project as a subsidy to the winning bidder.

Singson said the govnment gave the bidders an option to submit a bid with or without a subsidy. The winning bidders felt that there’s no need for subsidy so the highest bidder will win the project and the upfront payment will go the government.

“We are very happy with the aggressive bid of Optimal Infrastructure of SMC. Aside from construction cost the government will receive a P11 billion for the project because they are confident that the traffic is very big,” he said.

For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.ph. 

source:  Malaya