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