The Department of Public Works and Highways (DPWH) of the Philippines has issued a notice of award (NoA)to San Miguel Holdings Corporation (SMHC) for the Boracay Bridge PPP project in Aklan, Philippines.

The project originated from an unsolicited proposal and underwent a “Swiss challenge” process, where other bidders were invited to submit competing offers before the contract could be awarded. The Project involves the development of a roughly 2.54-km bridge linking Boracay Island to the mainland at Caticlan in Aklan. Designed as a build-operate-transfer (BOT) scheme, the project includes not only the bridge itself but also access roads, transport hubs, and supporting facilities for passenger and cargo movement. Its objective is to provide a more reliable, all-weather connection, improve mobility, and support tourism and economic activity in the region. Once the concession agreement is executed, the winning private partner will be responsible for financing, designing, constructing, operating, and maintaining the infrastructure over the concession period. The approved total Project Cost amounts to PHP 7.78 billion (US$130 million), inclusive of financing cost.

SMHC is required to comply with a set of post-award obligations within twenty calendar days from its official receipt of the NoA. This includes submitting a duly signed copy of the NoA by its authorized representative, confirming its acceptance of the project and its terms. In addition, SMHC must provide a Works Performance Security in favor of the DPWH. This security must be issued by an independent, reputable, and non-affiliated institution and can take several forms depending on the level of coverage. Acceptable options include cash, irrevocable letters of credit, bank drafts equivalent to at least 2% of the total project cost, bank guarantees covering at least 5%, or surety bonds amounting to at least 10% of the total project cost. The performance security will remain valid until the DPWH formally accepts the completed facility, ensuring that the contractor fulfills all its obligations during the implementation phase. 

SMHC must provide proof of the establishment of a Special Purpose Company (SPC) as part of its post-award compliance. This includes submitting Philippine Securities and Exchange Commission (SEC)-certified true copies of the SPC’s certificate of incorporation, articles of incorporation, and by-laws. Additional documentation required includes the Registration Data Sheet or certified extracts from the stock and transfer book, the General Information Sheet (GIS), and a notarized certification from the corporate secretary confirming the identities of shareholders and their respective ownership percentages. The SPC must also submit duly notarized board resolutions issued by an authorized officer. These should confirm that the company has held its organizational meeting, elected its board of directors and corporate officers, and authorized the execution, delivery, and implementation of the Concession Agreement along with related transaction documents. Furthermore, SMHC is required to present proof of firm financial backing from a reputable financial institution, demonstrating access to sufficient credit facilities to cover the total project cost. It must also provide evidence of the SPC’s equity commitments, which may include a Treasurer’s Affidavit certifying paid-up capital, subscription agreements between the SPC and its shareholders, or a shareholders’ agreement outlining commitments to contribute the required equity. In addition to these requirements, SMHC must submit its latest audited financial statements and a valid Tax Clearance Certificate, ensuring compliance with financial and regulatory obligations. 

If the winning proponent fails to submit all the specified requirements within twenty calendar days from receipt of the NoA, the award will be automatically revoked and the bid security will be forfeited. Moreover, once notified that all conditions of the NoA have been satisfied, the winning proponent is required to sign the Concession Agreement with the DPWH within five calendar days. Failure to execute the agreement within this period will likewise lead to the cancellation of the award and the forfeiture of the bid security.