Aquino orders rebidding Cavite-Laguna expressway project

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Aquino orders rebidding Cavite-Laguna expressway project

The President of Philippines, Benigno Aquino III, has ordered a rebidding of the Cavite-Laguna Expressway (CALAX) public private partnership (PPP) project.

According to the Public Works Undersecretary, Rafael Yabut, they have received a copy of the order from Office of the President to rebid the project. He added that the Department of Public Works and Highways (DPWH)'s Special Bids and Awards Committee is set to meet this week to discuss about the rebidding process.

The Philippine business community is divided over the issue of rebidding the P35.42-billion (US$787 million) public-private partnership (PPP) project. Some organizations are backing the Ayala-Aboitiz tandem, which topped the bidding, while other groups are supporting San Miguel Corp., which had been disqualified and called for the rebidding.

On June 11 DPWH disqualified conglomerate San Miguel Corp. (SMC) from bidding for the project. DPWH's Special Bids and Awards Committee disqualified Optimal Infrastructure Development Inc. (San Miguel Corp.) after it failed to comply with the bidding rules, particularly on the validity of its bid security.

However Ayala's team was not awarded the project the deal after Optimal Infrastructure Development Inc., which offered P20.105 billion to undertake the CALAX project, asked the President to review the bidding.

During the last days, Team Orion has announced that it will not rebid for the project.

For the CALAX project, the private partner shall finance, design, construct, operate and maintain the 47 kilometers close-system toll expressway starting from the existing Cavite Expressway (CAVITEX) and ending at South Luzon Expressway (SLEX) Mamplasan Interchange in Binan, Laguna.  This covers the 28.9 km Cavite Section from Kawit to Silang and the 18.1 km Laguna Section from Silang to SLEX.

CALAX is the DPWH's third and biggest infrastructure project under the government's public-private partnership (PPP) program. The first project, the Daang Hari-SLEX, was awarded to the Ayala group, while the second, the NAIA Expressway, went to Optimal Infrastructure.

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