7 groups buy bid documents for Clark int’l airport phase 1

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Clark International Airport Terminal in Pampanga. Leila Razon

SEVEN GROUPS have bought bid documents ahead of pre-qualification for the Clark International Airport Phase 1 upgrade, the Bases Conversion and Development Authority (BCDA) said.

The groups purchasing the P1-million bid documents for the P12.55-billion project are: the First Balfour, Inc. and Datem, Inc. joint venture; the Megawide Construction Corp. and GMR Infrastructure joint venture; Towking Construction Corp.; Qingjian Group Co., Ltd.; R-II Builders, Inc.; China Harbour Engineering Co., Ltd.; and China State Construction Engineering Corp.

The companies attended the pre-bid conference for the project yesterday, along with 43 other companies who have not bought the bid documents but have expressed interest in the bidding process.

Among the 43 interested companies are DMCI (Holdings, Inc.), Metro Pacific Investments Corp., MacroAsia Corp., and Hyundai (Engineering and Construction).

BCDA Vice-President and Chair of the BCDA Bids and Awards Committee Joshua M. Bingcang said that companies can still buy bid documents, and can submit their bids by Oct. 23.

The auction will involve the submission of certificates of eligibility; submission of technical proposals; and submission of bid. The awarding of the bid is targeted for the end of November.

Mr. Bingcang said that as the BCDA still conducts consultations with interested companies, he is confident of more companies submitting bids.

“We are confident that we have more numbers that will submit,” Mr. Bingcang told reporters.

Mr. Bingcang also said that the BCDA will aim to meet the target date of signing the contract by December. “Of course we want to have the biggest number of bidders, but we want to balance it with delivering the project on time,” he said.

Signing of the contract, ground breaking, and start of construction are targeted for December. The new terminal is expected to be operational by the first quarter of 2020.

Mr. Bingcang said “there are several options” regarding the financing of the project. BCDA President Vivencio B. Dizon said the government might also look at loaning a “small” amount as part of financing the project. The government will pay the contractor of the project after turnover in 2020. 

Mr. Dizon added: “What we want to ensure is that the quality of the new facility we’re building in Clark is at par with the best of the world.”

Mr. Bingcang said that among the qualification requirements for interested companies are the completion of a total of P15 billion worth of related projects; the design of an airport currently in operation; a net worth of at least the cost of the project; and the capacity to raise loans, with the winning bidder putting up 20% equity.

Mr. Bingcang also said that he had received requests to extend the deadline for the submission of bids.

“We will consider the request for the extension of submission… We don’t want the number of bidders to be limited only to a few, that we won’t be able to get a good price for the project,” Mr. Bingcang told reporters.

“The minimum is 20% [for equity]. We want to make sure they have the money, not just getting it all from loans… Some of the companies have the financial muscle to finance this on their own. We’re still allowing them to raise funds through loans, but we’re limiting it to 80%,” Mr. Bingcang told reporters.

Mr. Bingcang said the BCDA will make an announcement about the pre-bid for the operation and management (O&M) project of the airport within two months, as the awarding of the contract for the O&M is also targeted for the end of the year. He added that he does not want a scenario where the O&M contractor will raise issues regarding the constructed facility.

“Some of the O&M bidders are already looking. On their part, they want to ensure efficiency that what they are going to build is acceptable and is in the best possible condition… [They want to] see some synergy in terms of the costs of the project, and in terms of operating of the project.” — Patrizia Paola C. Marcelo