Sunday, December 29, 2013
NEDA Boards gets to approve reclamation projects
President Benigno S.C. Aquino III has transferred the power to approve reclamation projects to the National Economic Development Authority (NEDA) Board, to ensure the initiatives’ coordination and integration.
“The power of the President to approve reclamation projects is hereby delegated to the NEDA Board,” Executive Order (EO) 146, signed Nov. 15, read.
“There is a need to ensure that reclamation initiatives or projects are coordinated and integrated at the national and regional levels of development planning and programming, consistent with established national priorities of the government, and synchronized with development planning, programming, and budgeting,” the order read.
“The President, as chairman of the NEDA Board, wants to institutionalize a comprehensive vetting process for the approval of reclamation projects that ensures congruence with the Public Investment Program of the Philippine Development Plan,” Presidential Communications Operations Office Secretary Herminio “Sonny” B. Coloma said in a text message on Friday.
EO 146 provides that the Philippine Reclamation Authority will still process, evaluate and recommend the approval of all proposed reclamation projects to the NEDA Board.
EO 543, in 2006, delegated the power of the President to approve reclamation projects to the PRA “to the condition that reclamation contracts to be executed with any person or entity shall go through public bidding.”
“Proposed reclamation projects endorsed by the PRA to the NEDA Board should include all relevant documents as may be required by the NEDA Board, such as but not limited to Letters of Intent, Project Proposals, Pre-Feasibility Studies, draft agreement or contract. Such delegation however shall not be construed as diminishing the President’s authority to modify, amend or nullify NEDA Board’s action,” EO 146 read.
It further states that the approval of the NEDA Board is required for the following:
• reclamation projects initiated/proposed by PRA or any government entity allowed under existing laws to reclaim land;
• reclamation projects initiated by the private sector/entity through PRA, Local Government Units or other government agencies authorized to reclaim land; and
• reclamations / reclamation components of respective development projects of such agencies mandated to reclaim under their respective charters, such as but not limited to the following agencies: Philippine Ports Authority, Laguna Lake Development Authority, Bases Conversion and Development Authority, Subic Bay Metropolitan Authority, Philippine Veterans Investment Development Corporation, Department of Public Works and Highways, and National Power Corporation.
Except for the power to approve reclamation projects, all other powers, functions, and mandates of PRA shall be retained and exercised by the agency, EO 146 stated.
In addition, it stated that an Environmental Compliance Certificate shall be secured from the Department of Environment and Natural Resources.
“No reclamation work shall commence without the required ECC,” it said.
EO 146 also states that all reclamation projects should undergo competitive public bidding “consistent with the government’s thrust to promote transparency and competitiveness.”
The order applies to all reclamation projects, including those under actual implementation and those reclamation that have yet to start.
The Palace did not mention if the EO has something to do with the Pasay City reclamation deal.
Pasay City Legal Officer Severino C. Madrona, Jr. on Thursday said the city has already signed the joint venture agreement with SM Land, Inc. on Nov. 15 and that joint venture documents were submitted to the PRA on Nov. 19.
SM Land will be the official partner of the city government for the reclamation of 300 hectares in the Manila Bay area.
Ayala Land, Inc.; GT Capital Holdings, Inc.; and S&P Construction Technology and Development Co. bought bid documents but did not submit counterproposals by the Nov. 4 deadline due to questions on project terms. -- Kathryn Mae P. Tubadeza
source: Businessworld
Wednesday, December 25, 2013
What? No second runway for Mactan?
Since Megawide Construction won the lowest bid for the Mactan Cebu
International Airport Project, I have kept silent on this issue so as
not to say that we as a columnist are blocking this bidding that is
supposed to help improve the Mactan International Airport of which I was
a Director for nearly 20-years. However too many pundits have already
written and said their piece on this issue.. So I must now say my ten
cents worth.
First of all, I fully concur to what my good friend Robert “Bobby” Joseph said during the 888 News Forum in Cebu a couple of months back that the P17.5 billion Mactan Cebu International Airport Project was highly-questionable given the fact that this did not include a second runway. If I can recall, it was as far back as 12 years ago that I already insisted upon the MCIAA Board that Mactan International Airport should construct a second runway if we are going to look towards Cebu’s economic growth.
Alas my request fell on deaf ears. Clearly, officials of the Department of Transportation and Communications (DOTC) did not feel or believe that a second runway was necessary at that time. This is the kind of mentality that exists in the DOTC… where you only construct something when it is already needed. This is why there is traffic congestion not only in the Ninoy Aquino International Airport (NAIA) but also in most of our metropolis. In my book DOTC is a total failure for not being able to predict or at least anticipate the future of traffic and prepare the roads needed by our motorists.
Just take a good look at the NAIA today. Aside from the original Ninoy Aquino International Airport (NAIA), the DOTC constructed the Centennial International Airport exclusively for the use of Philippine Airlines (PAL). During Pres. Erap Estrada’s time, Fraport constructed the NAIA III (which still has no CCTV) which was highly contested, but in the end NAIA finally took control over this facility and look what has happened since? Thanks to two runways that criss-crossed each other, air traffic in NAIA is just as bad as the traffic in the South Luzon Expressway (SLEX).
If I always used Hong Kong’s International Airport as our best example it is due to the distinction of it’s being one of the world’s busiest and best airports. Yet it was only in 1998 when operations of the Hong Kong International Airport was moved to the islands of Chep Lap Kok and Lam Chau, which were mountains that were leveled to ground.
My idea of following the Hong Kong example would therefore allow more international flights to Cebu. Also we in Cebu do not want to follow the wrong example of what is happening in NAIA. Alas, we are stuck with the centrist mentality plaguing the DOTC since the Marcos dictatorship. So now, the DOTC has bidded this P17.5 billion airport facility sans a second runway. In short, P17.5 billion for an airport facility is just too expensive and it just makes me wonder why this facility is costing so much?
What I found deeply disturbing with the winning bidder Megawide is that, its international partner GMR Infrastructure, Ltd from Bangalore, India has only operated international airports in India and in Istanbul. Yet none of these airports are known to worldwide travelers as a great airport destination. For years under the leadership of then Mayor Tomas Osmeña, Cebu has always looked up to Singapore as Cebu’s target… a city second to none. This is why we were elated that there were other foreign bidders that participated in this bidding.
Then came that news report from The STAR’s Business Section last Monday which blared, “Disqualification of Megawide Group in Cebu Airport bid sought.” That article should raise red flags on the Megawide-GMR consortium. Firstly because we really don’t care about having a construction company build this airport for us. What we really care about is the group that can operate this airport facility just like most modern airports are being run in Asia. Take a look at NAIA III, it is a well-built airport, but it is faltering because of a lousy airport management operating it.
That GMR’s many issues on their way of running airports is a key factor that the DOTC ought to look into before awarding this group the Mactan International Airport project. That the Male Ibrahim Nasir International Airport in Maldives was cancelled by the Maldives government last December 2012 should be a worrisome concern. I’m not trying to push for any of the other bidders. But certainly the Megawide/GMR consortium has highly-questionable issues.
`So too with this whole package for the Mactan International Airport deal, which doesn’t include a second runway. So before things get worse, it is time for us to jolt those DOTC officials into giving Cebu a second runway before they award the winners of this bid. So please don’t say that we didn’t warn you. We needed that second runway 10 years ago!
Email: vsbobita@mozcom.com or vsbobita@gmail.com
source: Philippine Star Column of
First of all, I fully concur to what my good friend Robert “Bobby” Joseph said during the 888 News Forum in Cebu a couple of months back that the P17.5 billion Mactan Cebu International Airport Project was highly-questionable given the fact that this did not include a second runway. If I can recall, it was as far back as 12 years ago that I already insisted upon the MCIAA Board that Mactan International Airport should construct a second runway if we are going to look towards Cebu’s economic growth.
Alas my request fell on deaf ears. Clearly, officials of the Department of Transportation and Communications (DOTC) did not feel or believe that a second runway was necessary at that time. This is the kind of mentality that exists in the DOTC… where you only construct something when it is already needed. This is why there is traffic congestion not only in the Ninoy Aquino International Airport (NAIA) but also in most of our metropolis. In my book DOTC is a total failure for not being able to predict or at least anticipate the future of traffic and prepare the roads needed by our motorists.
Just take a good look at the NAIA today. Aside from the original Ninoy Aquino International Airport (NAIA), the DOTC constructed the Centennial International Airport exclusively for the use of Philippine Airlines (PAL). During Pres. Erap Estrada’s time, Fraport constructed the NAIA III (which still has no CCTV) which was highly contested, but in the end NAIA finally took control over this facility and look what has happened since? Thanks to two runways that criss-crossed each other, air traffic in NAIA is just as bad as the traffic in the South Luzon Expressway (SLEX).
If I always used Hong Kong’s International Airport as our best example it is due to the distinction of it’s being one of the world’s busiest and best airports. Yet it was only in 1998 when operations of the Hong Kong International Airport was moved to the islands of Chep Lap Kok and Lam Chau, which were mountains that were leveled to ground.
My idea of following the Hong Kong example would therefore allow more international flights to Cebu. Also we in Cebu do not want to follow the wrong example of what is happening in NAIA. Alas, we are stuck with the centrist mentality plaguing the DOTC since the Marcos dictatorship. So now, the DOTC has bidded this P17.5 billion airport facility sans a second runway. In short, P17.5 billion for an airport facility is just too expensive and it just makes me wonder why this facility is costing so much?
What I found deeply disturbing with the winning bidder Megawide is that, its international partner GMR Infrastructure, Ltd from Bangalore, India has only operated international airports in India and in Istanbul. Yet none of these airports are known to worldwide travelers as a great airport destination. For years under the leadership of then Mayor Tomas Osmeña, Cebu has always looked up to Singapore as Cebu’s target… a city second to none. This is why we were elated that there were other foreign bidders that participated in this bidding.
Then came that news report from The STAR’s Business Section last Monday which blared, “Disqualification of Megawide Group in Cebu Airport bid sought.” That article should raise red flags on the Megawide-GMR consortium. Firstly because we really don’t care about having a construction company build this airport for us. What we really care about is the group that can operate this airport facility just like most modern airports are being run in Asia. Take a look at NAIA III, it is a well-built airport, but it is faltering because of a lousy airport management operating it.
That GMR’s many issues on their way of running airports is a key factor that the DOTC ought to look into before awarding this group the Mactan International Airport project. That the Male Ibrahim Nasir International Airport in Maldives was cancelled by the Maldives government last December 2012 should be a worrisome concern. I’m not trying to push for any of the other bidders. But certainly the Megawide/GMR consortium has highly-questionable issues.
`So too with this whole package for the Mactan International Airport deal, which doesn’t include a second runway. So before things get worse, it is time for us to jolt those DOTC officials into giving Cebu a second runway before they award the winners of this bid. So please don’t say that we didn’t warn you. We needed that second runway 10 years ago!
Email: vsbobita@mozcom.com or vsbobita@gmail.com
source: Philippine Star Column of
Monday, December 23, 2013
TPLEx formally opens
SAN MIGUEL CORP.-led Private Infra
Development Corp. (PIDC) on Monday formally opened a stretch of
Tarlac-Pangasinan-La Union Expressway (TPLEx), which is expected to be
completed ahead of schedule in 2015.
President Benigno S. C. Aquino III led inauguration rites yesterday at Brgy. San Pascual in Tarlac City, together with San Miguel President and Chief Operating Officer Ramon S. Ang and Public Works Secretary Rogelio L. Singson.
In a statement, PIDC, the concessionaire of the expressway, said it aimed to complete the project in 2015 from the 2018 original schedule.
“In terms of construction, we are ahead of schedule. We are on track to delivering the entire length of TPLEx as early as 2015,” said Mr. Ang was quoted in the statement as saying.
Yesterday’s inauguration coincided with the opening of the expressway’s Paniqui Exit, which brought to 23 kilometers (km) the total length of the road that is now operational.
PIDC last October opened the first 17-km stretch of the toll road from Tarlac City to Gerona, Tarlac initially for free use by motorists.
Mr. Ang said PIDC will begin collecting toll fees staring next month. “I think in January, second week,” he told reporters yesterday.
From Tarlac City to Gerona, PIDC will be collecting P30.00-P58.00 for Class 1 vehicles (jeepneys, pickups, vans and cars); P76-145 for Class 2 vehicles (light trucks and buses) and P91-P174 for Class 3 vehicles (trailers and large trucks), according to an information sheet distributed to reporters on Monday.
PIDC is working on the 27-km stretch from Paniqui to Moncada in Tarlac, then to Carmen in Pangasinan -- including construction of a 950-meter Agno viaduct -- which is expected to be competed by April next year.
“Right now, we are waiting for the completion of the acquisition of the right of way for the 13.72-kilometer portion from the north bank of the Agno river up to Urdaneta. But our government is working on that. We are confident that we will complete this section up to Urdaneta as early as December 2014,” Mr. Ang said.
PIDC said remaining 25.83-km section from Urdaneta to Rosario, La Union will be completed the following year.
TPLEx, which is said to cut travel the travel time between Manila and Baguio to two to three hours from six, will have security features such as regular patrols by traffic and emergency assistance personnel.
San Miguel, which has diversified to heavier industries such as power and infrastructure from food and beverage, controls the concessionaires behind South Luzon Expressway and Manila Skyway.
Its unit Optimal Infrastructure Development Corp. last May won the P15.8-billion public-private partnership (PPP) project to build Ninoy Aquino International Airport Expressway, which will link the main airport and Bagong Nayong Pilipino Entertainment City Parañaque City near Manila Bay.
San Miguel, together with Indonesia’s Citra Group, last September secured the green light from Mr. Aquino to build P26.5-billion Skyway 3, a 14-km toll road that will link North and South Luzon expressways.
The conglomerate is eyeing even more toll road projects, with subsidiary Optimal Infrastructure in October submitting prequalification documents for the P35.5-billion PPP project to build the 47-km Cavite-Laguna Expressway.
San Miguel’s net income plunged 28.46% to P17.67 billion as September from P24.70 billion in the same nine months last year, weighed by higher foreign exchange losses. Sales gained 6.65% to P542.56 billion from P508.73 billion, while cost of sales grew 5.54% to P457.97 billion from P433.93 billion.
Its shares lost 95 centavos or 1.58% to close P59.05 apiece on Monday from P60.00 on Friday last week. Philippine financial markets will be closed on Tuesday and Wednesday for Christmas holidays. Trading resumes on Thursday. -- CHCV
source: Businessworld
President Benigno S. C. Aquino III led inauguration rites yesterday at Brgy. San Pascual in Tarlac City, together with San Miguel President and Chief Operating Officer Ramon S. Ang and Public Works Secretary Rogelio L. Singson.
In a statement, PIDC, the concessionaire of the expressway, said it aimed to complete the project in 2015 from the 2018 original schedule.
“In terms of construction, we are ahead of schedule. We are on track to delivering the entire length of TPLEx as early as 2015,” said Mr. Ang was quoted in the statement as saying.
Yesterday’s inauguration coincided with the opening of the expressway’s Paniqui Exit, which brought to 23 kilometers (km) the total length of the road that is now operational.
PIDC last October opened the first 17-km stretch of the toll road from Tarlac City to Gerona, Tarlac initially for free use by motorists.
Mr. Ang said PIDC will begin collecting toll fees staring next month. “I think in January, second week,” he told reporters yesterday.
From Tarlac City to Gerona, PIDC will be collecting P30.00-P58.00 for Class 1 vehicles (jeepneys, pickups, vans and cars); P76-145 for Class 2 vehicles (light trucks and buses) and P91-P174 for Class 3 vehicles (trailers and large trucks), according to an information sheet distributed to reporters on Monday.
PIDC is working on the 27-km stretch from Paniqui to Moncada in Tarlac, then to Carmen in Pangasinan -- including construction of a 950-meter Agno viaduct -- which is expected to be competed by April next year.
“Right now, we are waiting for the completion of the acquisition of the right of way for the 13.72-kilometer portion from the north bank of the Agno river up to Urdaneta. But our government is working on that. We are confident that we will complete this section up to Urdaneta as early as December 2014,” Mr. Ang said.
PIDC said remaining 25.83-km section from Urdaneta to Rosario, La Union will be completed the following year.
TPLEx, which is said to cut travel the travel time between Manila and Baguio to two to three hours from six, will have security features such as regular patrols by traffic and emergency assistance personnel.
San Miguel, which has diversified to heavier industries such as power and infrastructure from food and beverage, controls the concessionaires behind South Luzon Expressway and Manila Skyway.
Its unit Optimal Infrastructure Development Corp. last May won the P15.8-billion public-private partnership (PPP) project to build Ninoy Aquino International Airport Expressway, which will link the main airport and Bagong Nayong Pilipino Entertainment City Parañaque City near Manila Bay.
San Miguel, together with Indonesia’s Citra Group, last September secured the green light from Mr. Aquino to build P26.5-billion Skyway 3, a 14-km toll road that will link North and South Luzon expressways.
The conglomerate is eyeing even more toll road projects, with subsidiary Optimal Infrastructure in October submitting prequalification documents for the P35.5-billion PPP project to build the 47-km Cavite-Laguna Expressway.
San Miguel’s net income plunged 28.46% to P17.67 billion as September from P24.70 billion in the same nine months last year, weighed by higher foreign exchange losses. Sales gained 6.65% to P542.56 billion from P508.73 billion, while cost of sales grew 5.54% to P457.97 billion from P433.93 billion.
Its shares lost 95 centavos or 1.58% to close P59.05 apiece on Monday from P60.00 on Friday last week. Philippine financial markets will be closed on Tuesday and Wednesday for Christmas holidays. Trading resumes on Thursday. -- CHCV
source: Businessworld
DMCI bags airport rehab deal
THE GOVERNMENT has awarded the contract to rehabilitate Ninoy Aquino International Airport Terminal 1 (NAIA-1) to DMCI Holdings, Inc., the Transport chief told reporters on Monday.
“We have awarded the rehabilitation of NAIA-1 to DMCI,” Transportation and Communications Secretary Joseph Emilio A. Abaya said at the sidelines of the launch of the Philippine National Railways’ service between Tutuban station in Manila and Sta. Rosa, Laguna.
The infrastructure conglomerate submitted the best bid for the P1.64-billion contract, Mr. Abaya said, although he could not readily provide bid details. The Consunji-led holding firm bested two other bidders -- Hillmarc’s Construction Corp. and EEI Corp. -- during the auction held last Dec. 20, he added.
The project involves architectural, structural, mechanical and electrical works, he explained.
“Once we will have issued the notice to proceed, they (DMCI) can start early next year, maybe [in the] first week of January,” Mr. Abaya said.
He said the project could be completed by December next year.
“We are really behind, but that is our target,” Mr. Abaya said.
DMCI grew net income by 87.4% to P18.74 billion as of September from P10 billion in the same nine months last year. Revenues rose 5.24% to P41.15 billion from P39.1 billion, while cost of sales edged up to P26.25 billion from P26.12 billion.
Its shares gained 95 centavos or 1.72% to close P56.30 apiece on Monday from P55.35 each on Friday last week. Philippine financial markets are closed on Tuesday and Wednesday for the Christmas holidays. -- LCSM
source: Businessworld
Thursday, December 19, 2013
Gov’t upbeat on PPPs
Gov’t upbeat on PPPs
INCREASED investor interest in public-private partnerships (PPPs) has raised government expectations about its centerpiece infrastructure program.
The Aquino administration is confident that seven projects, instead of five, will be completed when its term ends in 2016, PPP Center Cosette V. Canilao yesterday told reporters.
The government also expects to have awarded at least 15 contracts by then, she added.
"These are our working targets which we think are achievable," Ms. Canilao said.
Last October, she said that following delays, only five projects would likely be finished before President Benigno S. C. Aquino III steps down:
• the P1.96-billion Daang Hari-South Luzon expressway project;
• P16.42-billion PPP School Infrastructure Program (PSIP) Phase 1;
• P3.86-billion PSIP Phase II;
• P15.68-billion Ninoy Aquino International Airport (NAIA) expressway; and
• the P5.69-billion Philippine Orthopedic Center modernization project.
The five have already been awarded. The list now includes the just auctioned off 1.72-billion Automatic Fare Collection System (AFCS) and the P7.7-billion Integrated Transport System.
All seven are included in the 15 projects that the government is targetting to award by 2016, the others being:
• the P35.42-billion Cavite-Laguna Expressway;
• P17.5-billion Mactan-Cebu International Airport project;
• Light Rail Transit Line 1 (LRT-1) Cavite Extension;
• P29.83-billion Bulacan Bulk Water Supply Project;
• P15.92-billion Laguindingan Airport operations and maintenance (O&M) contract;
• P44.31-billion New Centennial Water Supply Source deal;
• P2.34-billion enhanced O&M contract for the New Bohol Panglao Airport; and
• O&M of LRT Line 2.
"These are very doable projects before the President’s term ends," Ms. Canilao claimed, adding that with more commercially viable projects being offered, the private sector was now more upbeat on participating.
The government, she also noted, would be earning close to P28 billion from the combined premiums offered for the NAIA expressway, Daang Hari, AFCS and Mactan-Cebu deals.
source: Businessworld
INCREASED investor interest in public-private partnerships (PPPs) has raised government expectations about its centerpiece infrastructure program.
The Aquino administration is confident that seven projects, instead of five, will be completed when its term ends in 2016, PPP Center Cosette V. Canilao yesterday told reporters.
The government also expects to have awarded at least 15 contracts by then, she added.
"These are our working targets which we think are achievable," Ms. Canilao said.
Last October, she said that following delays, only five projects would likely be finished before President Benigno S. C. Aquino III steps down:
• the P1.96-billion Daang Hari-South Luzon expressway project;
• P16.42-billion PPP School Infrastructure Program (PSIP) Phase 1;
• P3.86-billion PSIP Phase II;
• P15.68-billion Ninoy Aquino International Airport (NAIA) expressway; and
• the P5.69-billion Philippine Orthopedic Center modernization project.
The five have already been awarded. The list now includes the just auctioned off 1.72-billion Automatic Fare Collection System (AFCS) and the P7.7-billion Integrated Transport System.
All seven are included in the 15 projects that the government is targetting to award by 2016, the others being:
• the P35.42-billion Cavite-Laguna Expressway;
• P17.5-billion Mactan-Cebu International Airport project;
• Light Rail Transit Line 1 (LRT-1) Cavite Extension;
• P29.83-billion Bulacan Bulk Water Supply Project;
• P15.92-billion Laguindingan Airport operations and maintenance (O&M) contract;
• P44.31-billion New Centennial Water Supply Source deal;
• P2.34-billion enhanced O&M contract for the New Bohol Panglao Airport; and
• O&M of LRT Line 2.
"These are very doable projects before the President’s term ends," Ms. Canilao claimed, adding that with more commercially viable projects being offered, the private sector was now more upbeat on participating.
The government, she also noted, would be earning close to P28 billion from the combined premiums offered for the NAIA expressway, Daang Hari, AFCS and Mactan-Cebu deals.
source: Businessworld
Megawide finalizing loan deal for hospital PPP venture
Megawide finalizing loan deal for hospital PPP venture
LISTED BUILDER Megawide Construction Corp. is wrapping up a deal for a syndicated loan worth nearly P3 billion that will help bankroll the current administration’s first hospital public-private partnership (PPP) project, a senior company official said yesterday.
“We are almost done with the financial closure. It’s a syndicated loan. We are raising around P2.9 billion for Philippine Orthopedic,” Chief Financial Officer Oliver Y. Tan told reporters over lunch in Makati City. “The rest would be internal [funding].”
The company has tapped Land Bank of the Philippines as the lead arranger for the syndicated loan from “two to three banks.” Mr. Tan declined to name the lenders.
Megawide’s consortium with World Citi, Inc. last Dec. 11 obtained a notice of award for a P5.7-billion contract to modernize the Philippine Orthopedic Center in Quezon City. The project involves construction of a new 700-bed hospital and a 25-year concession period during which World Citi will manage the hospital.
“We are in the design phase. In the last quarter of next year, we hope to start construction,” Mr. Tan said.
“It will take two years to complete the project, we are looking at the first quarter of 2017 for it to be up and running.”
Last week, Megawide, together with its Indian partner GMR Infrastructure Ltd., tendered the best bid for the P17.5-billion PPP project to expand and operate Mactan-Cebu International Airport, after offering P14.40-billion upfront payment to the government on top of shouldering the construction cost.
The Megawide-GMR bid is still being evaluated by the Transportation department, and a notice of award could be issued on Jan. 6 next year.
Mr. Tan said Megawide could tap existing bank lines if his company bags the project.
“Tapping the equities market has always been an option but we don’t want to be diluted anymore, so we might probably do a stock rights offering,” Mr. Tan said, referring to a share sale wherein existing shareholders could maintain ownership in the company.
“But we are ready without even going to the capital market. Obviously, you don’t go to a war without ammunition.”
The airport project could be the fourth PPP deal to be awarded to Megawide.
The company last October bagged two of the five contracts under the P8.8-billion PPP for School Infrastructure Project (PSIP) Phase II.
Its consortium with Citicore Holdings Investment, Inc. was one of two groups that last year won the P16.42-billion PSIP Phase I.
Megawide recorded a net profit of P983.24 million as of September, up 55.21% from P633.50 million in the same nine months last year. Contract revenues increased 28.70% to P7.22 billion from P5.61 billion, while contract cost rose 26.65% to P5.94 billion from P4.69 billion.
Megawide shares gained 46 centavos or 3.33% to close P14.28 apiece yesterday from P13.82 each last Tuesday.
source: Businesswolrd
LISTED BUILDER Megawide Construction Corp. is wrapping up a deal for a syndicated loan worth nearly P3 billion that will help bankroll the current administration’s first hospital public-private partnership (PPP) project, a senior company official said yesterday.
“We are almost done with the financial closure. It’s a syndicated loan. We are raising around P2.9 billion for Philippine Orthopedic,” Chief Financial Officer Oliver Y. Tan told reporters over lunch in Makati City. “The rest would be internal [funding].”
The company has tapped Land Bank of the Philippines as the lead arranger for the syndicated loan from “two to three banks.” Mr. Tan declined to name the lenders.
Megawide’s consortium with World Citi, Inc. last Dec. 11 obtained a notice of award for a P5.7-billion contract to modernize the Philippine Orthopedic Center in Quezon City. The project involves construction of a new 700-bed hospital and a 25-year concession period during which World Citi will manage the hospital.
“We are in the design phase. In the last quarter of next year, we hope to start construction,” Mr. Tan said.
“It will take two years to complete the project, we are looking at the first quarter of 2017 for it to be up and running.”
Last week, Megawide, together with its Indian partner GMR Infrastructure Ltd., tendered the best bid for the P17.5-billion PPP project to expand and operate Mactan-Cebu International Airport, after offering P14.40-billion upfront payment to the government on top of shouldering the construction cost.
The Megawide-GMR bid is still being evaluated by the Transportation department, and a notice of award could be issued on Jan. 6 next year.
Mr. Tan said Megawide could tap existing bank lines if his company bags the project.
“Tapping the equities market has always been an option but we don’t want to be diluted anymore, so we might probably do a stock rights offering,” Mr. Tan said, referring to a share sale wherein existing shareholders could maintain ownership in the company.
“But we are ready without even going to the capital market. Obviously, you don’t go to a war without ammunition.”
The airport project could be the fourth PPP deal to be awarded to Megawide.
The company last October bagged two of the five contracts under the P8.8-billion PPP for School Infrastructure Project (PSIP) Phase II.
Its consortium with Citicore Holdings Investment, Inc. was one of two groups that last year won the P16.42-billion PSIP Phase I.
Megawide recorded a net profit of P983.24 million as of September, up 55.21% from P633.50 million in the same nine months last year. Contract revenues increased 28.70% to P7.22 billion from P5.61 billion, while contract cost rose 26.65% to P5.94 billion from P4.69 billion.
Megawide shares gained 46 centavos or 3.33% to close P14.28 apiece yesterday from P13.82 each last Tuesday.
source: Businesswolrd
Saturday, December 14, 2013
Megawide-led group set to bag airport PPP
Megawide-led group set to bag airport PPP
MEGAWIDE Construction Corp. and India’s GMR Infrastructure Ltd. are likely to bag the P17.5-billion Mactan-Cebu International Airport (MCIA) project, the largest public-private partnership (PPP) deal offered so far by the government.
The consortium beat six others including the country’s top conglomerates, offering a premium of P14.4 billion for a 25-year concession to operate the country’s second-biggest airport, located in the Visayas, and build one of its terminals.
Financial proposals submitted last Nov. 28 were opened by the Transportation department yesterday.
The Megawide-led bid was about P400 million above the second-placed offer from a group led by property-to-banking firm Filinvest Development Corp. and Changi Airports Saudi Ltd.
"This is the highest, I think, premium paid to government, thus far. Last one was [the] NAIA (Ninoy Aquino International Airport) expressway which is P11 billion," PPP Center Executive Director Cosette V. Canilao said.
A unit of conglomerate San Miguel Corp. earlier this year bagged the P15.86-billion NAIA Expressway Phase II project by offering the government an upfront fee of P11 billion.
"[A]ll of the bidders were keenly interested and they believed in the project, that is why you can see of all them bid at a premium," Transportation Undersecretary Jose Perpetuo M. Lotilla said.
A notice of award will be issued on Jan. 6 while the signing of the concessionaire agreement has been scheduled for Feb. 6.
"It is still subject to the continuing process of evaluation before the notice of award is given," Mr. Lotilla said.
Megawide, with a market cap of $428 million, has so far won three out of five contracts -- valued at around P26 billion -- tendered by the government under the three-year-old PPP scheme.
On Wednesday, a Health department official said Megawide -- the sole bidder -- had won a 25-year contract for the P5.70-billion new Philippine Orthopedic Center project. In 2012 it bagged a segment of the PPP School Infrastructure Project Phase One (PSIP-1), followed by another deal under the PSIP-II last October.
Megawide’s MCIA offer bested those from bigger rivals that included the country’s most valuable conglomerate, SM Investments Corp., and the most diversified, San Miguel.
SM teamed up with Flughafen Zurich AG, while San Miguel partnered with Incheon International Airport Corp.
Other bidders were the consortium of Metro Pacific Investments Corp. and JG Summit Holdings Corp. with partner Aeroports de Lyon; First Philippine Holdings Corp. and Wellington International Airport Limited; and Ayala Corp, Aboitiz Equity Ventures Inc. and Houston Airport System.
Megawide and GMR aim to build an airport terminal that can accommodate 25 million passengers a year, more than three times the government requirement, said Oliver Y. Tan, Megawide chief finance officer.
But he said the plan would depend on developments in the tourism industry and the security situation, with Manila battling Muslim rebels in the south and a communist insurgency.
The group’s bid reflects its "expectations in terms of the internal rate of return" of the project, Mr. Tan said, adding GMR would take a 40% stake in the joint venture.
GMR operates and maintains three airports in New Delhi and Hyderabad in India, and in Istanbul.
Megawide shares climbed as much as 5% in afternoon trade after the offers were announced, but later erased its gains to settle flat. The broader market was down 2%.
Delays in the bidding process for high-profile PPP projects have clouded prospects of an infrastructure boost that will sustain Philippine economic growth at 7% or higher.
But Manila is now moving to expedite the process. On Monday, officials said a consortium of conglomerates Ayala Corp. and Metro Pacific Corp. gave the best bid for a P1.72-billion contract to operate a smart-card system for the elevated rail network in Manila.
The Mactan airport connects tourist spots in the central Philippines with direct flights from Asian cities such as Hong Kong, Singapore, Seoul and Tokyo.
The existing terminal was designed with a 4.5-million passenger capacity, but 6.2 million passengers passed through in 2011. -- main report by Reuters
source; Businessworld
MEGAWIDE Construction Corp. and India’s GMR Infrastructure Ltd. are likely to bag the P17.5-billion Mactan-Cebu International Airport (MCIA) project, the largest public-private partnership (PPP) deal offered so far by the government.
The consortium beat six others including the country’s top conglomerates, offering a premium of P14.4 billion for a 25-year concession to operate the country’s second-biggest airport, located in the Visayas, and build one of its terminals.
Financial proposals submitted last Nov. 28 were opened by the Transportation department yesterday.
The Megawide-led bid was about P400 million above the second-placed offer from a group led by property-to-banking firm Filinvest Development Corp. and Changi Airports Saudi Ltd.
"This is the highest, I think, premium paid to government, thus far. Last one was [the] NAIA (Ninoy Aquino International Airport) expressway which is P11 billion," PPP Center Executive Director Cosette V. Canilao said.
A unit of conglomerate San Miguel Corp. earlier this year bagged the P15.86-billion NAIA Expressway Phase II project by offering the government an upfront fee of P11 billion.
"[A]ll of the bidders were keenly interested and they believed in the project, that is why you can see of all them bid at a premium," Transportation Undersecretary Jose Perpetuo M. Lotilla said.
A notice of award will be issued on Jan. 6 while the signing of the concessionaire agreement has been scheduled for Feb. 6.
"It is still subject to the continuing process of evaluation before the notice of award is given," Mr. Lotilla said.
Megawide, with a market cap of $428 million, has so far won three out of five contracts -- valued at around P26 billion -- tendered by the government under the three-year-old PPP scheme.
On Wednesday, a Health department official said Megawide -- the sole bidder -- had won a 25-year contract for the P5.70-billion new Philippine Orthopedic Center project. In 2012 it bagged a segment of the PPP School Infrastructure Project Phase One (PSIP-1), followed by another deal under the PSIP-II last October.
Megawide’s MCIA offer bested those from bigger rivals that included the country’s most valuable conglomerate, SM Investments Corp., and the most diversified, San Miguel.
SM teamed up with Flughafen Zurich AG, while San Miguel partnered with Incheon International Airport Corp.
Other bidders were the consortium of Metro Pacific Investments Corp. and JG Summit Holdings Corp. with partner Aeroports de Lyon; First Philippine Holdings Corp. and Wellington International Airport Limited; and Ayala Corp, Aboitiz Equity Ventures Inc. and Houston Airport System.
Megawide and GMR aim to build an airport terminal that can accommodate 25 million passengers a year, more than three times the government requirement, said Oliver Y. Tan, Megawide chief finance officer.
But he said the plan would depend on developments in the tourism industry and the security situation, with Manila battling Muslim rebels in the south and a communist insurgency.
The group’s bid reflects its "expectations in terms of the internal rate of return" of the project, Mr. Tan said, adding GMR would take a 40% stake in the joint venture.
GMR operates and maintains three airports in New Delhi and Hyderabad in India, and in Istanbul.
Megawide shares climbed as much as 5% in afternoon trade after the offers were announced, but later erased its gains to settle flat. The broader market was down 2%.
Delays in the bidding process for high-profile PPP projects have clouded prospects of an infrastructure boost that will sustain Philippine economic growth at 7% or higher.
But Manila is now moving to expedite the process. On Monday, officials said a consortium of conglomerates Ayala Corp. and Metro Pacific Corp. gave the best bid for a P1.72-billion contract to operate a smart-card system for the elevated rail network in Manila.
The Mactan airport connects tourist spots in the central Philippines with direct flights from Asian cities such as Hong Kong, Singapore, Seoul and Tokyo.
The existing terminal was designed with a 4.5-million passenger capacity, but 6.2 million passengers passed through in 2011. -- main report by Reuters
source; Businessworld
Tuesday, December 10, 2013
Automatic Fare Collection: PPP project likely to go to Ayala, MPIC
THE CONSORTIUM of conglomerates Ayala Corp.
and Metro Pacific Investments Corp. (MPIC) are likely to emerge the
winners after submitting the highest offer for a P1.72-billion deal to
operate a smart-card system for the Philippines’ elevated rail network.
The group, known as the AF Consortium, submitted the best bid by offering a premium of P1.08 billion on top of the cost of designing and constructing the Automated Fare Collection System (AFCS) for Metro Manila.
The deal is one of several projects the government has offered to the private sector under a public-private partnership scheme to fast-track major infrastructure developments.
AF’s offer of a premium was higher by just P103,900 than that of a consortium led by the SM Group, owned by the country’s richest man, Henry Sy.
The third bidder, Comworks Inc. and Berjaya, asked for a subsidy of P2.05 billion.
Two other bidders, the group of E-Trans Solutions and a consortium of Megawide Construction Corp., were earlier disqualified by the government after they failed to meet technical requirements. The two groups said they would appeal.
"We’re very happy with the outcome ... really close bids between the SM and AF consortiums; we’ll just see after 15 days," PPP Center Executive Director Cosette V. Canilao said.
The winning bidder will operate and maintain the AFCS, expected to be operational by the third quarter of 2015, for 10 years. The Transportation department will announce the final winner on Dec. 23 after it conducts a post-bid evaluation.
MPIC President Jose Maria K. Lim said his group was confident of hurdling the post-qualification process.
"Clearly, it shows an appreciation of the retail potential of the micropayments market. We were only able to bid as aggressively as we did because of the size and potential of that market," he told reporters after the bidding.
MPIC Chairman Manuel V. Pangilinan, in a statement, said: "This strategic alliance will create integrated solutions that will improve public transportation through our vision to transform the country’s light rail transit system into a network very much like those in Hong Kong, Singapore, and other major cities in Asia."
Ayala Chairman Jaime Augusto Zobel de Ayala, for his part, said: "We will be leveraging the complementary strengths and assets of each consortium member, and we believe that we can help bring out the promising potential of AFCS not only as a transit fare collection method but as a broader and efficient payment ecosystem at par with global standards."
The AF Consortium partnered with MSI Global, developer of the software for the automatic fare collection system in Singapore and Bangkok, and SMRT, which currently operates Singapore’s mass transit system.
MPIC subsidiary Beacon Electric Asset Holdings, is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. -- Reuters with a report from LCSM
source: Businessworld
The group, known as the AF Consortium, submitted the best bid by offering a premium of P1.08 billion on top of the cost of designing and constructing the Automated Fare Collection System (AFCS) for Metro Manila.
The deal is one of several projects the government has offered to the private sector under a public-private partnership scheme to fast-track major infrastructure developments.
AF’s offer of a premium was higher by just P103,900 than that of a consortium led by the SM Group, owned by the country’s richest man, Henry Sy.
The third bidder, Comworks Inc. and Berjaya, asked for a subsidy of P2.05 billion.
Two other bidders, the group of E-Trans Solutions and a consortium of Megawide Construction Corp., were earlier disqualified by the government after they failed to meet technical requirements. The two groups said they would appeal.
"We’re very happy with the outcome ... really close bids between the SM and AF consortiums; we’ll just see after 15 days," PPP Center Executive Director Cosette V. Canilao said.
The winning bidder will operate and maintain the AFCS, expected to be operational by the third quarter of 2015, for 10 years. The Transportation department will announce the final winner on Dec. 23 after it conducts a post-bid evaluation.
MPIC President Jose Maria K. Lim said his group was confident of hurdling the post-qualification process.
"Clearly, it shows an appreciation of the retail potential of the micropayments market. We were only able to bid as aggressively as we did because of the size and potential of that market," he told reporters after the bidding.
MPIC Chairman Manuel V. Pangilinan, in a statement, said: "This strategic alliance will create integrated solutions that will improve public transportation through our vision to transform the country’s light rail transit system into a network very much like those in Hong Kong, Singapore, and other major cities in Asia."
Ayala Chairman Jaime Augusto Zobel de Ayala, for his part, said: "We will be leveraging the complementary strengths and assets of each consortium member, and we believe that we can help bring out the promising potential of AFCS not only as a transit fare collection method but as a broader and efficient payment ecosystem at par with global standards."
The AF Consortium partnered with MSI Global, developer of the software for the automatic fare collection system in Singapore and Bangkok, and SMRT, which currently operates Singapore’s mass transit system.
MPIC subsidiary Beacon Electric Asset Holdings, is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld. -- Reuters with a report from LCSM
source: Businessworld
DoTC to open bids for MCIA tomorrow
THE DEPARTMENT of Transportation and
Communications (DoTC) announced yesterday that it will open the
financial proposals for the first airport public-private partnership
(PPP) project on Thursday.
The agency is scheduled to complete the technical evaluation stage for the P17.5-billion Mactan-Cebu International Airport (MCIA) Project today.
The DoTC bids and awards committee will then determine how many of the seven bidders will be eligible for the financial evaluation phase.
It has set a 15-day deadline for the completion of the technical checks from the submission of the bids on Nov. 28. Awarding of the project is set in mid-January.
DoTC Spokesman Michael Arthur C. Sagcal said in a statement that the agency is expediting the tendering process of the project, as the department is poised to offer two new PPP deals this month and next year.
"We are expediting work on our PPPs, especially now that we are re-bidding the LRT (Light Rail Transit) Line 1 Cavite Extension project and preparing to bid out the Integrated Transport System (ITS) project later this month," Mr. Sagcal said.
These seven parties submitted their financial and technical proposals for the airport deal to the DoTC yesterday:
• Metro Pacific - JG Summit consortium;
• AAA Airport Partners of the Ayala and Aboitiz groups;
• Filinvest-CAI consortium;
• San Miguel - Incheon Airport consortium;
• First Philippine Airports led by First Philippine Holdings;
• Premier Airport Group led by SM Investments Corp.; and
• the GMR Infrastructure and Megawide consortium.
Meanwhile, new players have indicated interest in bidding for the LRT-1 extension project, with local construction firm Megawide Corp. and Spanish rail transport operator Globalvia Infraestructuras, S.A. purchasing bid documents.
Bidding for the project is scheduled for April 28 next year.
DMCI Holdings, Inc. and San Miguel Corp., both of which pre-qualified to bid during the initial tender, have obtained bid documents as well.
The DoTC also plans to start the bidding process for the ITS terminals on Coastal Road in southern Metro Manila within the month. This project is to provide commuters with modern and efficient transport hubs where they can conveniently transfer to in-city buses, the LRT-1 system, or other forms of urban transport. -- L.C.S. Marasigan
source: Businessworld
The agency is scheduled to complete the technical evaluation stage for the P17.5-billion Mactan-Cebu International Airport (MCIA) Project today.
The DoTC bids and awards committee will then determine how many of the seven bidders will be eligible for the financial evaluation phase.
It has set a 15-day deadline for the completion of the technical checks from the submission of the bids on Nov. 28. Awarding of the project is set in mid-January.
DoTC Spokesman Michael Arthur C. Sagcal said in a statement that the agency is expediting the tendering process of the project, as the department is poised to offer two new PPP deals this month and next year.
"We are expediting work on our PPPs, especially now that we are re-bidding the LRT (Light Rail Transit) Line 1 Cavite Extension project and preparing to bid out the Integrated Transport System (ITS) project later this month," Mr. Sagcal said.
These seven parties submitted their financial and technical proposals for the airport deal to the DoTC yesterday:
• Metro Pacific - JG Summit consortium;
• AAA Airport Partners of the Ayala and Aboitiz groups;
• Filinvest-CAI consortium;
• San Miguel - Incheon Airport consortium;
• First Philippine Airports led by First Philippine Holdings;
• Premier Airport Group led by SM Investments Corp.; and
• the GMR Infrastructure and Megawide consortium.
Meanwhile, new players have indicated interest in bidding for the LRT-1 extension project, with local construction firm Megawide Corp. and Spanish rail transport operator Globalvia Infraestructuras, S.A. purchasing bid documents.
Bidding for the project is scheduled for April 28 next year.
DMCI Holdings, Inc. and San Miguel Corp., both of which pre-qualified to bid during the initial tender, have obtained bid documents as well.
The DoTC also plans to start the bidding process for the ITS terminals on Coastal Road in southern Metro Manila within the month. This project is to provide commuters with modern and efficient transport hubs where they can conveniently transfer to in-city buses, the LRT-1 system, or other forms of urban transport. -- L.C.S. Marasigan
source: Businessworld
Monday, December 9, 2013
Cutting corners in the tax assessment process
WITH Manny Pacquiao’s tax evasion case with
the Bureau of Internal Revenue (BIR) still a sizzling topic, the tax
office issued a new revenue regulation that is making waves among
taxpayers, tax practitioners and revenue officers with regard to the due
process requirements in issuing deficiency tax assessments.
The rules governing the issuance of deficiency tax assessments are long established under Section 228 of the National Internal Revenue Code of 1997 (Tax Code) and its implementing regulation, RR No. 12-99. Under the old rules, after the examination of a taxpayer’s books of accounts and other records pursuant to a Letter of Authority or a Letter Notice, the BIR officer who performed the audit shall notify the taxpayer of the discrepancy or discrepancies in the latter’s tax payments, by issuing a Notice of Informal Conference. The taxpayer is then given 15 days to present his side of the case.
In case the taxpayer fails to timely respond to the Notice of Informal Conference, the revenue officer may endorse his findings for the issuance of a Preliminary Assessment Notice (PAN) or a Formal Letter of Demand (FLD)/Final Assessment Notice (FAN), whenever the case falls under the situations enumerated in the Tax Code when a PAN is no longer required. Again, once a PAN is issued, the taxpayer has 15 days to refute the findings of the revenue officer.
If the issues are not resolved at the PAN stage, the BIR may issue the FLD/FAN calling for the payment of the deficiency taxes. The taxpayer is given 30 days from receipt of the FLD/FAN to submit a written protest against the assessments, and 60 days from the filing of the written protest to submit all relevant supporting documents. The taxpayer’s failure to protest the FLD/FAN or submit all relevant supporting documents within the prescribed period makes the tax assessments final, executory and demandable.
If the Commissioner of Internal Revenue or his duly authorized representative denies the protest, or fails to act on the protest, the taxpayer may elevate the decision of the Commissioner to the Court of Tax Appeals (CTA) within 30 days from receipt of the denial or lapse of the 180-day period for the Commissioner to decide. The taxpayer’s failure to timely appeal the adverse decision or the inaction of the Commissioner of Internal Revenue to the CTA makes the assessments final, executory and demandable.
Revenue Regulations (RR) No. 18-2013, dated Nov. 28, 2013, changed the pace of the tax assessment and collection process by introducing the following amendments:
1. Omission of the issuance of the Notice of Informal Conference;
2. Issuance of the FLD/FAN within 15 days from receipt of the PAN, in case of default by the taxpayer, or within 15 days from filing of the reply to the PAN, in case of disagreement with the tax findings in the PAN;
3. Requirement on the part of the taxpayer to state the nature of protest to the FLD/FAN, whether for request for reconsideration and request for reinvestigation, and prescribing the legal effects of each mode;
4. Institution of the administrative appeal with the Commissioner of Internal Revenue through request for reconsideration, in which the taxpayer is barred from presenting newly discovered or additional evidence to support his case;
5. Inclusion of an exclusivity rule in case of inaction of the Commissioner on the protested assessment, i.e., the remedy of filing a petition for review with the Court of Tax Appeals bars the remedy of waiting for the final decision of the Commissioner or his duly authorized representative, which decision is subject to appeal to the CTA;
6. Institution of personal service and substituted service as modes of serving the PAN/FLD/FAN and the Final Decision on Disputed Assessment (FDDA) in addition to service by registered mail.
The most notable amendment introduced by RR 18-2013 is the removal of the Notice of Informal Conference. The Notice of Informal Conference is not a requirement under the Tax Code; nevertheless, it was institutionalized under RR 12-99 as part of procedural due process. In scrapping this requirement, the BIR aims to achieve an assessment and collection process which, in numerous cases decided by the courts, is defeated by the defense of prescription under the statute of limitations of the Tax Code.
The BIR seems to be keen on formalizing the tax assessment after the investigation reaches the PAN stage. It is interesting to note that the BIR only has 15 days to resolve the issues in the PAN stage and issue the FLD/FAN. A real evaluation of the documents and arguments of the documents submitted by the taxpayer takes time and needs more than 15 days. Understanding the documents, tax reconciliations and legal defenses is impossible to do within a short period of 15 days primarily because of the huge numbers of tax investigations assigned to revenue officers. The only way to prevent the issuance of the FLD/FAN is to settle the tax assessments in the PAN, which would make one wonder why replying to the PAN is one of a taxpayer’s remedies in the first place.
The shortened period does not give the taxpayers enough time to prepare his documents and arguments. More importantly, it does not allow the BIR officers enough time to consider and study the documents and arguments presented to them.
It would seem that the shortened period, though aimed at expediting the process, however makes the PAN stage inutile.
There are other interesting provisions in RR No. 18-2013 which, in my opinion, should have been the topic of an open forum between the BIR and taxpayers, or now that it is issued, be the subject to a clarificatory issuance by the BIR. This "game changer" will take effect on Dec. 15, 2013, and given its important amendments, it pays to have a proper understanding of procedural due process as part of a taxpayer’s rights and remedies under the law.
The author is a tax manager at Punongbayan & Araullo, the Philippine member firm of Grant Thornton International Ltd.
source: Businessworld
The rules governing the issuance of deficiency tax assessments are long established under Section 228 of the National Internal Revenue Code of 1997 (Tax Code) and its implementing regulation, RR No. 12-99. Under the old rules, after the examination of a taxpayer’s books of accounts and other records pursuant to a Letter of Authority or a Letter Notice, the BIR officer who performed the audit shall notify the taxpayer of the discrepancy or discrepancies in the latter’s tax payments, by issuing a Notice of Informal Conference. The taxpayer is then given 15 days to present his side of the case.
In case the taxpayer fails to timely respond to the Notice of Informal Conference, the revenue officer may endorse his findings for the issuance of a Preliminary Assessment Notice (PAN) or a Formal Letter of Demand (FLD)/Final Assessment Notice (FAN), whenever the case falls under the situations enumerated in the Tax Code when a PAN is no longer required. Again, once a PAN is issued, the taxpayer has 15 days to refute the findings of the revenue officer.
If the issues are not resolved at the PAN stage, the BIR may issue the FLD/FAN calling for the payment of the deficiency taxes. The taxpayer is given 30 days from receipt of the FLD/FAN to submit a written protest against the assessments, and 60 days from the filing of the written protest to submit all relevant supporting documents. The taxpayer’s failure to protest the FLD/FAN or submit all relevant supporting documents within the prescribed period makes the tax assessments final, executory and demandable.
If the Commissioner of Internal Revenue or his duly authorized representative denies the protest, or fails to act on the protest, the taxpayer may elevate the decision of the Commissioner to the Court of Tax Appeals (CTA) within 30 days from receipt of the denial or lapse of the 180-day period for the Commissioner to decide. The taxpayer’s failure to timely appeal the adverse decision or the inaction of the Commissioner of Internal Revenue to the CTA makes the assessments final, executory and demandable.
Revenue Regulations (RR) No. 18-2013, dated Nov. 28, 2013, changed the pace of the tax assessment and collection process by introducing the following amendments:
1. Omission of the issuance of the Notice of Informal Conference;
2. Issuance of the FLD/FAN within 15 days from receipt of the PAN, in case of default by the taxpayer, or within 15 days from filing of the reply to the PAN, in case of disagreement with the tax findings in the PAN;
3. Requirement on the part of the taxpayer to state the nature of protest to the FLD/FAN, whether for request for reconsideration and request for reinvestigation, and prescribing the legal effects of each mode;
4. Institution of the administrative appeal with the Commissioner of Internal Revenue through request for reconsideration, in which the taxpayer is barred from presenting newly discovered or additional evidence to support his case;
5. Inclusion of an exclusivity rule in case of inaction of the Commissioner on the protested assessment, i.e., the remedy of filing a petition for review with the Court of Tax Appeals bars the remedy of waiting for the final decision of the Commissioner or his duly authorized representative, which decision is subject to appeal to the CTA;
6. Institution of personal service and substituted service as modes of serving the PAN/FLD/FAN and the Final Decision on Disputed Assessment (FDDA) in addition to service by registered mail.
The most notable amendment introduced by RR 18-2013 is the removal of the Notice of Informal Conference. The Notice of Informal Conference is not a requirement under the Tax Code; nevertheless, it was institutionalized under RR 12-99 as part of procedural due process. In scrapping this requirement, the BIR aims to achieve an assessment and collection process which, in numerous cases decided by the courts, is defeated by the defense of prescription under the statute of limitations of the Tax Code.
The BIR seems to be keen on formalizing the tax assessment after the investigation reaches the PAN stage. It is interesting to note that the BIR only has 15 days to resolve the issues in the PAN stage and issue the FLD/FAN. A real evaluation of the documents and arguments of the documents submitted by the taxpayer takes time and needs more than 15 days. Understanding the documents, tax reconciliations and legal defenses is impossible to do within a short period of 15 days primarily because of the huge numbers of tax investigations assigned to revenue officers. The only way to prevent the issuance of the FLD/FAN is to settle the tax assessments in the PAN, which would make one wonder why replying to the PAN is one of a taxpayer’s remedies in the first place.
The shortened period does not give the taxpayers enough time to prepare his documents and arguments. More importantly, it does not allow the BIR officers enough time to consider and study the documents and arguments presented to them.
It would seem that the shortened period, though aimed at expediting the process, however makes the PAN stage inutile.
There are other interesting provisions in RR No. 18-2013 which, in my opinion, should have been the topic of an open forum between the BIR and taxpayers, or now that it is issued, be the subject to a clarificatory issuance by the BIR. This "game changer" will take effect on Dec. 15, 2013, and given its important amendments, it pays to have a proper understanding of procedural due process as part of a taxpayer’s rights and remedies under the law.
The author is a tax manager at Punongbayan & Araullo, the Philippine member firm of Grant Thornton International Ltd.
source: Businessworld
Saturday, December 7, 2013
P1.7-B single ticketing system for MRT, LRT: 3 groups qualify for DOTC project
MANILA, Philippines - The Department of Transportation and Communications (DOTC) said three of the five prequalified groups that submitted bids for the P1.7-billion single ticketing system project for the Metro Rail Transit (MRT) and the Light Rail Transit (LRT) passed the agency’s technical evaluation.
DOTC spokesperson Michael Arthur Sagcal said the AF consortium led by conglomerate Ayala Corp. and infrastructure giant Metro Pacific Investments Corp. (MPIC) of businessman Manuel V. Pangilinan; Comworks-Berjaya consortium; and the SM consortium of retail magnate Henry Sy Sr. passed the evaluation conducted by the agency’s Bids and Awards Committee (BAC).
“We will carefully review the financial proposals of the three remaining groups only. At the end of the day, we must make sure that both government and the public will get the most advantageous terms possible,” Sagcal stressed.
After opening the financial proposals on Monday, he said the agency would conduct a financial evaluation of each opened submission in accordance with the Build-Operate-Transfer (BOT) Law.
“We have been speeding up the process. At the rate we are going, we should be able to award the contract by January,” he added.
The two groups that failed to hurdle the agency’s technical evaluation were the E-Trans Solutions Joint Venture Inc. and Megawide-Suyen-Eurolink consortium due to substantial deficiencies regarding their ability to implement the project.
According to the BAC, E-Trans Solutions’, technical proposal did not describe the required conditions for use of the project, which would protect the card user’s data privacy. It was also found to be incomplete, unclear, and did not show compliance with the project’s scheme provider principles. Moreover, its business plan did not follow the projection computations contained in the draft concession agreement.
As for Megawide-Suyen-Eurolink, its business plan was found to be incomplete and inconsistent and did not contain the required project internal rate of return, making it impossible to evaluate the project’s feasibility.
In addition, the payment and revenue numbers it indicated in one section of the business plan contradicted the very same items contained in another section. It also pegged its post-tax equity return at -2.64 percent, which indicates that the proposal may not be self-sustaining.
All five groups submitted technical bids and financial bids for the P1.72 billion Automatic Fare Collection System (AFCS) project last Nov. 18.
The winning consortium has the option to expand the contactless card system to other businesses in and out of the transportation sector such as in retail transactions.
The MRT-LRT single ticket is envisioned to be like Hong Kong’s Octopus Card, which serves as a debit card, aside from being a stored-value train ticket. The single ticket could also be used for other modes of transportation such as buses, paying toll, electronic banking, and even shopping.
The AFCS project would bring important benefits to the more than one million daily passengers using the light rail lines, ensuring seamless interconnection for travelers and removing the current inconvenience of the need to buy separate tickets for separate lines.
It would allow the operating authorities to develop a service offering that better suit the needs of the passengers through a system similar to Hong Kong, London, the Netherlands and other countries.
It would replace the current magnetic-based ticketing system that is very much at the end of its usability and could also serve as an electronic micropayment solution in convenience stores, or as identifier for loyalty schemes, facility access and location based services as well as other transport modes including buses and taxi cabs.
The riding public has long urged government to implement a common ticketing system for the LRT Lines 1 and 2 and the MRT 3 as the different ticketing schemes employed in the three mass transport systems have been blamed for the long lines of passengers buying tickets at the train stations.
The MRT line that runs from Baclaran in Pasay City to North Ave. in Quezon City services around 600,000 passengers per day, way above its capacity of 350,000.
On the other hand, LRT Line 1, which runs from Baclaran in Pasay City to Roosevelt in Quezon City, serves at least 500,000 passengers daily while the LRT Line 2, which operates from Recto in Manila to Santolan in Pasig City, caters to 350,000.
source: Philippine Star
Thursday, December 5, 2013
Oil exploration schedule extended
THE JOINT VENTURE of Australian firm Nido
Petroleum Ltd. and PNOC-Exploration Corp. (PNOC-EC) will proceed next
year with drilling of an exploration well in Service Contract (SC) 63
located in waters southwest of Palawan.
This came after the Energy department approved the joint venture’s request to extend the SC 63 work program until 2014, according to Nido’s report to the Australian Securities Exchange.
Nido said: “the Department of Energy has formally confirmed its approval of the extension of the current sub-phase.” The joint venture had sought a 12-month extension of the current sub-phase which lapsed last month. The extension will allow the joint venture to drill in the area until Nov. 23 next year.
Nido, as the operator, said it is “continuing to progress preparation [sic] for the drilling campaign in relation to the Baragatan prospect and is currently finalizing negotiations with a rig contractor on behalf of the SC 63 joint venture.”
“Nido expects to drill the Baragatan prospect in the first half of the 2014,” the report read.
Last month, Nido reported it had already signed a letter of intent with a preferred rig contractor to drill the exploratory well and that a binding agreement could be signed before yearend.
The joint venture has already secured various permits to drill the well. Other equipment like the wellhead and casing are being stored in Nido’s operations base in Batangas, according to the firm.
Nido last May said the joint venture will spend $22-25 million to drill the exploration well.
SC 63 was awarded to the joint venture in November 2006. The petroleum block covers an area of 1,067,000 hectares. Nido and PNOC-EC each hold 50% interest.
Besides SC 63, Nido also holds 22.88% interest in SC 14 or the Galoc oil field located in waters northwest of Palawan. It also owns stake in other exploration areas in the Philippines, which are SC 54A (42.40%); SC 54B (60%); SC 58 (50%); and SC 6B (7.81%) -- all of which are also located in the waters northwest of Palawan. PNOC-EC also holds 19% interest in SC 43 located in Ragay Gulf in Bicol; 97% in SC 47 located offshore Mindoro province; 25% in SC 59 located in waters southwest of Palawan; and 10% in SC 38, 28% in SC 57, and 50% in SC 58 all located in waters northwest of Palawan. -- Claire-Ann Marie C. Feliciano
source: Businessworld
This came after the Energy department approved the joint venture’s request to extend the SC 63 work program until 2014, according to Nido’s report to the Australian Securities Exchange.
Nido said: “the Department of Energy has formally confirmed its approval of the extension of the current sub-phase.” The joint venture had sought a 12-month extension of the current sub-phase which lapsed last month. The extension will allow the joint venture to drill in the area until Nov. 23 next year.
Nido, as the operator, said it is “continuing to progress preparation [sic] for the drilling campaign in relation to the Baragatan prospect and is currently finalizing negotiations with a rig contractor on behalf of the SC 63 joint venture.”
“Nido expects to drill the Baragatan prospect in the first half of the 2014,” the report read.
Last month, Nido reported it had already signed a letter of intent with a preferred rig contractor to drill the exploratory well and that a binding agreement could be signed before yearend.
The joint venture has already secured various permits to drill the well. Other equipment like the wellhead and casing are being stored in Nido’s operations base in Batangas, according to the firm.
Nido last May said the joint venture will spend $22-25 million to drill the exploration well.
SC 63 was awarded to the joint venture in November 2006. The petroleum block covers an area of 1,067,000 hectares. Nido and PNOC-EC each hold 50% interest.
Besides SC 63, Nido also holds 22.88% interest in SC 14 or the Galoc oil field located in waters northwest of Palawan. It also owns stake in other exploration areas in the Philippines, which are SC 54A (42.40%); SC 54B (60%); SC 58 (50%); and SC 6B (7.81%) -- all of which are also located in the waters northwest of Palawan. PNOC-EC also holds 19% interest in SC 43 located in Ragay Gulf in Bicol; 97% in SC 47 located offshore Mindoro province; 25% in SC 59 located in waters southwest of Palawan; and 10% in SC 38, 28% in SC 57, and 50% in SC 58 all located in waters northwest of Palawan. -- Claire-Ann Marie C. Feliciano
source: Businessworld
Reclamation row far from over
THE CONTEST for a multibillion-peso
reclamation project in Pasay is far from over given an apparent division
within the city government.
The city council on Wednesday passed a resolution recalling its approval of SM Land, Inc.’s P54.5-billion unsolicited proposal to reclaim 300 hectares of land. The city’s Public-Private Partnership Selection Committee (PPP-SC), however, declared the deal would push through.
"We are proceeding with the project," city legal officer Severo C. Madrona, Jr., who sits as PPP-SC vice-chairman, in a interview yesterday. "We have to ignore it (the resolution), but we will write them (the city council) to clarify each point."
SM Land said it could go to the courts given the city council’s move, which rival developer Ayala Land, Inc. welcomed.
"SM Land opines that there are legal remedies available and SM Land will not hesitate in pursuing such recourse if the council insists on this course of action," the company said in a statement.
Dave L. Rafael, the property developer’s senior vice-president, added: "We don’t want to delve on the motives behind why the city council is now belatedly withdrawing its support, but frankly, they were ill-advised."
City council members were not immediately available for comment.
Ayala Land corporate secretary Solomon M. Hermosura, for his part, said city council’s move was "in the right direction."
Mr. Madrona, however, said the "agreement is a perfected contract. We complied with all applicable laws, rules and regulations and it was ratified by the city council."
In Resolution 3059, Series of 2013, issued earlier this week however, the council recalled three prior decisions allowing the reclamation project to move forward. These were Resolution 3040, which allowed the PPP-SC to proceed with the opening of competing proposals; Resolution 3046, which allowed Mayor Antonio G. Calixto to sign the agreement with SM Land; and Resolution 3049, which ratified the award.
With no counterproposals having been submitted by a Nov. 4 deadline, the PPP-SC granted the contract to SM Land last Nov. 15.
This week’s Resolution 3059 was passed after hearings -- for the purpose of crafting new PPP rules -- where Ayala Land and S&P Construction Technology and Development Co. questioned the bidding process.
Ayala Land argued that a 2013 version of National Economic and Development Authority (NEDA) joint venture guidelines, which give challengers more time to prepare, should have been used instead of the 2008 set. S&P Construction, meanwhile, claimed the Build-Operate-Transfer law should have been applied and that bid documents lacked details.
In the Resolution 3059, the city council said "the issue raised by both Ayala Land and S&P Construction cast serious doubt on the legality of the proceedings made with respect to the ... reclamation and development project."
Mr. Madrona denied this, saying: "The 2013 version of the NEDA JV Guidelines is still being reviewed by the PPP Center."
"We don’t want to be the ‘guinea pig’ for these guidelines."
Asked to comment on the lack of project details, Mr. Madrona replied: "Those claims are not true. It was clearly stated there what the competitive challenger needs to do."
source: Businessworld
The city council on Wednesday passed a resolution recalling its approval of SM Land, Inc.’s P54.5-billion unsolicited proposal to reclaim 300 hectares of land. The city’s Public-Private Partnership Selection Committee (PPP-SC), however, declared the deal would push through.
"We are proceeding with the project," city legal officer Severo C. Madrona, Jr., who sits as PPP-SC vice-chairman, in a interview yesterday. "We have to ignore it (the resolution), but we will write them (the city council) to clarify each point."
SM Land said it could go to the courts given the city council’s move, which rival developer Ayala Land, Inc. welcomed.
"SM Land opines that there are legal remedies available and SM Land will not hesitate in pursuing such recourse if the council insists on this course of action," the company said in a statement.
Dave L. Rafael, the property developer’s senior vice-president, added: "We don’t want to delve on the motives behind why the city council is now belatedly withdrawing its support, but frankly, they were ill-advised."
City council members were not immediately available for comment.
Ayala Land corporate secretary Solomon M. Hermosura, for his part, said city council’s move was "in the right direction."
Mr. Madrona, however, said the "agreement is a perfected contract. We complied with all applicable laws, rules and regulations and it was ratified by the city council."
In Resolution 3059, Series of 2013, issued earlier this week however, the council recalled three prior decisions allowing the reclamation project to move forward. These were Resolution 3040, which allowed the PPP-SC to proceed with the opening of competing proposals; Resolution 3046, which allowed Mayor Antonio G. Calixto to sign the agreement with SM Land; and Resolution 3049, which ratified the award.
With no counterproposals having been submitted by a Nov. 4 deadline, the PPP-SC granted the contract to SM Land last Nov. 15.
This week’s Resolution 3059 was passed after hearings -- for the purpose of crafting new PPP rules -- where Ayala Land and S&P Construction Technology and Development Co. questioned the bidding process.
Ayala Land argued that a 2013 version of National Economic and Development Authority (NEDA) joint venture guidelines, which give challengers more time to prepare, should have been used instead of the 2008 set. S&P Construction, meanwhile, claimed the Build-Operate-Transfer law should have been applied and that bid documents lacked details.
In the Resolution 3059, the city council said "the issue raised by both Ayala Land and S&P Construction cast serious doubt on the legality of the proceedings made with respect to the ... reclamation and development project."
Mr. Madrona denied this, saying: "The 2013 version of the NEDA JV Guidelines is still being reviewed by the PPP Center."
"We don’t want to be the ‘guinea pig’ for these guidelines."
Asked to comment on the lack of project details, Mr. Madrona replied: "Those claims are not true. It was clearly stated there what the competitive challenger needs to do."
source: Businessworld
Sunday, December 1, 2013
Exploration progresses in Mindoro oil prospect
THE GROUP handling Service Contract (SC) 53
located onshore Mindoro province aims to drill the second of two
planned exploration wells in the first half of next year, according to a
regulatory filing.
In its third-quarter financial report, The Philodrill Corp. -- which holds 22% stake in the project -- said the operator of SC 53, Pitkin Petroleum Plc., is already preparing for drilling the second well at the Progreso prospect.
“With regard to the planned drilling activity, Pitkin continued with the preparation for the drilling of Progreso-2 well which is programmed for the first half of 2014,” the report read.
Philodrill said that Pitkin -- which holds a 35% stake in SC 53 -- has progressed in securing approvals for the planned drilling activity.
“The operator has already achieved some success in securing approval of tribal communities and the National Commission for Indigenous People for its various activities on the block,” the company noted.
Last August, Basic Energy Corp. reported that the consortium of SC 53 was set to drill the Progreso-2 well, the second of two exploration facilities under the work program.
Basic Energy has a 3% interest in the SC. The other consortium members are Resource Management Associates Ltd. (35%); and Anglo Philippine Holdings Corp. (5%).
Basic Energy -- which is involved in various oil exploration activities -- also holds minority stakes in SC 47 located offshore Mindoro province and SC 41 in Sulu Sea.
The company recorded a P9.31-million net loss as of end-September compared to the P187.66-million net income in the same nine months last year. Revenues fell 91.3% to P20.23 million from P232.48 million, while costs and expenses dropped by 8.4% to P29.54 million from P32.25 million.
On the other hand, Philodrill -- which is engaged in oil, gas and mineral exploration and development -- holds interests in SC 6A, SC 6B, and SC 14 -- all located in waters northwest of Palawan; as well as SC 41 in Sulu Sea.
The firm’s profit dropped to P208.77 million in the nine months to September from P212.65 million the previous year. Revenues fell 6.46% to P499.26 million from P533.73 million, while costs expenses grew by 2.22% to P321.72 million from P314.74 million.
Shares of Philodrill closed at 3.7 centavos apiece on Friday last week, unchanged from Thursday, while those of Basic Energy added 3.90% to 24 centavos each from 23.1 centavos. -- Claire-Ann Marie C. Feliciano
source: Businessworld
In its third-quarter financial report, The Philodrill Corp. -- which holds 22% stake in the project -- said the operator of SC 53, Pitkin Petroleum Plc., is already preparing for drilling the second well at the Progreso prospect.
“With regard to the planned drilling activity, Pitkin continued with the preparation for the drilling of Progreso-2 well which is programmed for the first half of 2014,” the report read.
Philodrill said that Pitkin -- which holds a 35% stake in SC 53 -- has progressed in securing approvals for the planned drilling activity.
“The operator has already achieved some success in securing approval of tribal communities and the National Commission for Indigenous People for its various activities on the block,” the company noted.
Last August, Basic Energy Corp. reported that the consortium of SC 53 was set to drill the Progreso-2 well, the second of two exploration facilities under the work program.
Basic Energy has a 3% interest in the SC. The other consortium members are Resource Management Associates Ltd. (35%); and Anglo Philippine Holdings Corp. (5%).
Basic Energy -- which is involved in various oil exploration activities -- also holds minority stakes in SC 47 located offshore Mindoro province and SC 41 in Sulu Sea.
The company recorded a P9.31-million net loss as of end-September compared to the P187.66-million net income in the same nine months last year. Revenues fell 91.3% to P20.23 million from P232.48 million, while costs and expenses dropped by 8.4% to P29.54 million from P32.25 million.
On the other hand, Philodrill -- which is engaged in oil, gas and mineral exploration and development -- holds interests in SC 6A, SC 6B, and SC 14 -- all located in waters northwest of Palawan; as well as SC 41 in Sulu Sea.
The firm’s profit dropped to P208.77 million in the nine months to September from P212.65 million the previous year. Revenues fell 6.46% to P499.26 million from P533.73 million, while costs expenses grew by 2.22% to P321.72 million from P314.74 million.
Shares of Philodrill closed at 3.7 centavos apiece on Friday last week, unchanged from Thursday, while those of Basic Energy added 3.90% to 24 centavos each from 23.1 centavos. -- Claire-Ann Marie C. Feliciano
source: Businessworld
New PPPs lined up
BIDDING SCHEDULES for two more
public-private partnership (PPP) projects are being finalized after
National Economic and Development Authority (NEDA) approvals were
secured by implementing agencies last month.
The Metropolitan Waterworks and Sewerage System (MWSS) plans to publish the invitation to prequalify and bid (ITPB) for the P24.4-billion Bulacan Bulk Water Supply Project -- the first water PPP -- in January, Administrator Gerardo A. I. Esquivel said.
"We already have a timeline but this is still indicative. Publishing of [the] invitation will be from Jan. 3 to 17 for the Bulacan Bulk Water Supply Project," Mr. Esquivel told BusinessWorld last Friday.
An indicative timeline prepared by MWSS sets the submission and opening of prequalification documents on Feb. 4, to be followed by a 20-day evaluation period. Bid submissions have been tentatively set for Aug. 29 and a notice of award could be issued between Oct. 10-14.
The first water PPP project to be rolled out by the Aquino government entails the provision of treated water to some 24 local government units via the development of new sources and infrastructure.
"The concession period is 30 years, from 2015 to 2045. It has three stages ... the first one covers six water districts to be delivered by 2016...," Mr. Esquivel said.
The first stage calls for the provision of 100 million liters of water per day (MLD) to the municipalities of Obando, Meycauayan, Marilao, Bocaue, Balagtas and San Jose del Monte, while the second involves a 375 MLD volume for Calumpit, Bulakan, Guiguinto, Sta. Maria, Malolos, Paombong, Plaridel, Pulilan and Hagonoy. The final stage covers 237 MLD for Angat, Baliwag, Bustos, Norzagaray, San Miguel, Don Remedios Trinidad, San Ildefonso, San Rafael and Pandi.
TRANSPORT TERMINALS
The Transportation department, meanwhile, is planning to publish this month the ITPB for the P7.7-billion Development of Transportation System at the Food Terminal Inc. (FTI) and Philippine Reclamation Authority (PRA) -- originally known as the Integrated Terminal System (ITS) project.
"The target is to start the bidding process ... this December," Transportation department spokesman Michael Arthur C. Sagcal said in a text message.
The PPP project involves the development of two facilities at the southern outskirts of Metro Manila: the South Luzon Express Way Terminal within the FTI Compound in Taguig, which will serve passengers traveling to and from Laguna and Batangas, and the Coastal Road Terminal inside the PRA property along the Manila-Cavite Expressway that will be for passengers traveling to and from Cavite.
Separate auctions will be staged for both.
The ITS project originally had three components -- two south stations and one north station. PPP Center Executive Director Cosette V. Canilao said the Transportation department "is still looking for the appropriate location" for the north facility. -- Claire-Ann Marie C. Feliciano and Lorenz Christoffer S. Marasigan
source: Businessworld
The Metropolitan Waterworks and Sewerage System (MWSS) plans to publish the invitation to prequalify and bid (ITPB) for the P24.4-billion Bulacan Bulk Water Supply Project -- the first water PPP -- in January, Administrator Gerardo A. I. Esquivel said.
"We already have a timeline but this is still indicative. Publishing of [the] invitation will be from Jan. 3 to 17 for the Bulacan Bulk Water Supply Project," Mr. Esquivel told BusinessWorld last Friday.
An indicative timeline prepared by MWSS sets the submission and opening of prequalification documents on Feb. 4, to be followed by a 20-day evaluation period. Bid submissions have been tentatively set for Aug. 29 and a notice of award could be issued between Oct. 10-14.
The first water PPP project to be rolled out by the Aquino government entails the provision of treated water to some 24 local government units via the development of new sources and infrastructure.
"The concession period is 30 years, from 2015 to 2045. It has three stages ... the first one covers six water districts to be delivered by 2016...," Mr. Esquivel said.
The first stage calls for the provision of 100 million liters of water per day (MLD) to the municipalities of Obando, Meycauayan, Marilao, Bocaue, Balagtas and San Jose del Monte, while the second involves a 375 MLD volume for Calumpit, Bulakan, Guiguinto, Sta. Maria, Malolos, Paombong, Plaridel, Pulilan and Hagonoy. The final stage covers 237 MLD for Angat, Baliwag, Bustos, Norzagaray, San Miguel, Don Remedios Trinidad, San Ildefonso, San Rafael and Pandi.
TRANSPORT TERMINALS
The Transportation department, meanwhile, is planning to publish this month the ITPB for the P7.7-billion Development of Transportation System at the Food Terminal Inc. (FTI) and Philippine Reclamation Authority (PRA) -- originally known as the Integrated Terminal System (ITS) project.
"The target is to start the bidding process ... this December," Transportation department spokesman Michael Arthur C. Sagcal said in a text message.
The PPP project involves the development of two facilities at the southern outskirts of Metro Manila: the South Luzon Express Way Terminal within the FTI Compound in Taguig, which will serve passengers traveling to and from Laguna and Batangas, and the Coastal Road Terminal inside the PRA property along the Manila-Cavite Expressway that will be for passengers traveling to and from Cavite.
Separate auctions will be staged for both.
The ITS project originally had three components -- two south stations and one north station. PPP Center Executive Director Cosette V. Canilao said the Transportation department "is still looking for the appropriate location" for the north facility. -- Claire-Ann Marie C. Feliciano and Lorenz Christoffer S. Marasigan
source: Businessworld
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