Palace to fast-track review of SMC appeal

Palace to fast-track review of SMC appeal

MALACAÑANG vowed to fast-track the resolution of the plea of diversified conglomerate San Miguel Corp. (SMC) to reconsider its disqualified offer to build and operate the P35.2-billion Cavite-Laguna Expressway.

Communications Secretary Herminio B. Coloma Jr. said President Aquino intends to swiftly address the petition of SMC unit Optimal Infrastructure Development Inc. to avoid further delays in the deal’s awarding.

“The petition will be reviewed with due diligence and sense of urgency,” he said in a text message.

Optimal, through a 37-page memorandum of appeal, asked Mr. Aquino to nullify the resolution of the Department of Public Works and Highways (DPWH) that disqualified the firm from the deal’s auction.  The infrastructure arm of SMC also asked President Aquino to declare its bid as compliant and accept its financial offer through a “judicial notice.”

In response, Malacañang issued a 30-day stay order on Monday last week against the resolution of the public works agency which barred Optimal from joining the auction as a result of a defective bid security.  Deputy Executive Secretary for Legal Affairs Michael G. Aguinaldo said in the order that Mr. Aquino directed the SMC unit to submit its memorandum of appeal in three copies to the Palace and the DPWH.

The appeal shall “contain the caption and docket number of the case as presented in the office of origin and the addresses of the parties; the specific material dates showing the timeliness of the appeal; a concise statement of the facts and issues and the grounds relied upon for the appeal; and should be accompanied by a clearly legible duplicate original or a certified true copy of the decision being appealed.”

The Malacañang order puts the awarding of the multibillion-peso contract to an indefinite halt, which was tagged by a member of the leading consortium in the bidding as “unfortunate.”

AC Infrastructure Holdings Corp. President Eric T. Francia said while Team Orion respects the appeals process, the government must also do its part in upholding the integrity of the auction and the Aquino administration’s key infrastructure program as a whole.

“It is unfortunate that this will cause a delay in the project, which is a much-needed infrastructure. However, we need to respect that process. We are hopeful that Malacañang will stand by the DPWH decision and uphold the rules and integrity of the public-private partnership [PPP] program,” he said in a text message.

Optimal was disqualified from the bidding for the multibillion-peso contract due to a defective risk guarantee, which was four days short of the required period.

Its financial proposal was opened in front of reporters during the auction, revealing that the firm is offering to build and operate the expressway with a premium of P20.105 billion.

The proposal was P8.45 billion higher than the P11.65-billion premium offer made by Team Orion of Ayala Corp. and Aboitiz Land Inc. The group emerged as the front-runner during the bidding following the disqualification of Optimal.

The project is a 47-kilometer thoroughfare that would start from the Manila-Cavite Expressway in Kawit, Cavite, and end at the South Luzon Expressway (Slex)-Mamplasan Interchange in Biñan, Laguna. It would consist of nine interchanges and a toll barrier before the Slex.

The third PPP project under the DPWH, the expressway is seen to decongest traffic along the Cavite-Laguna road network.

Construction of the multibillion-peso expressway is seen to start by October next year. It is expected to be completed by September 2017. Coloma said the review is consistent with Administrative Order (AO) 22, which prescribed the rules and regulations governing appeals to the Office of the President.

Coloma explained, that in accordance with AO 22, the Office of the President, through Aguinaldo, is now “conducting a review of the appeal of that company that is associated with SMC on this specific project, namely the Calax.”

(With Butch Fernandez)

Source: http://businessmirror.com.ph/index.php/en/news/top-news/34853-palace-to-fast-track-review-of-smc-appeal