Calax drops San Miguel over ‘defective’ bid security – DPWH


The Department of Public Works and Highways (DPWH) will open only three financial proposals for the P35.42-billion Cavite-Laguna Expressway (Calax) project today, after the bid of San Miguel Corp. (SMC) unit Optimal Infrastructure Development Inc. was disqualified over a technicality.

The DPWH said the financial proposals of Alloy MTD Capital, Team Orion, and MPCALA Holdings, Inc. will be opened Friday to determine the winning bidder, 11 days after the bid proposal submission on June 2, 2014.

The DPWH said it received bid proposals consisting of the Bid Letter (Envelope 1), the Technical Proposal (Envelope 2) and the Financial Proposal (Envelope 3) from four  prequalified groups: Alloy MTD Capital, Team Orion, MPCALA Holdings and Optimal Infrastructure.

On June 2, in accordance with the Instructions to Bidders (ITB), the Special Bids and Awards Committee (SBAC) opened Envelopes 1 and 2 of the bidders in the order in which the bids were received to determine the presence or absence of the required documents.

Upon determination of the presence of the required documents, Envelopes 1 and 2 were resealed for further review and examination. All the Financial Proposals of the bidders were kept unopened and signed and countersigned by the bidders.

After a further review and examination by the SBAC, the Bid Letters and Technical Proposals of Alloy MTD Capital, Team Orion and MPCALA Holdings were deemed qualified.

However, the bid submission of Optimal was disqualified after a careful and studied consideration of the matter by the SBAC, which determined that the bid security, which was part of Envelope 1, was not compliant with the ITB requirements.

As a result of this disqualification, the entire bid proposal of Optimal will be returned Friday morning, including the Financial Proposal which has remained unopened.

“Yes, Optimal was disqualified due to a defective bid security, particularly the expiration date was short of the requirement,” DPWH Secretary Rogelio Singson said in a text message.

Optimal’s bid security for the project—June 2 to November 29 —was reportedly short by four days. Under the SBAC’s bidding rules, the required bid security period was 180 calendar days.

The bidder that submits the highest unqualified concession fee payment proposal to the government shall be declared the winner on June 13, 2014.  If no one submits a concession fee payment proposal, the bidder with the lowest subsidy requirement from the government shall win.

The Calax Project is a 44.7- expressway that will start from Cavitex in Kawit, Cavite and end at the SLEX-Mamplasan Interchange in Biñan, Laguna.

It will have interchanges in eight locations, namely: Kawit, Daang Hari, Governor’s Drive, Aguinaldo Highway, Silang, Sta. Rosa-Tagaytay, Laguna Blvd. and Laguna Technopark.

The expressway is expected to connect Cavite and Laguna directly, which would greatly help reduce travel time between and around the area. The area is home to hundreds of economic zone locators that comprise over 50 percent of all ecozone locators in the country.


Please follow our commenting guidelines.

1 Comment

  1. If the process is unfair! maybe San Miguel may let it go. There are some more PPP projects that will come on stream. Just be ready, do not go to exhausted legal battle (phil style) because it will set back or slow down the actual implementation. For the country and its people.