PRESIDENTIAL Adviser on Poverty Alleviation Secretary Larry Gadon on Monday said he has advised President Ferdinand Marcos, Jr. to extend the bidding deadline for the P171-billion Ninoy Aquino International Airport (NAIA) rehabilitation project as the original deadline set by the Department of Transportation (DoTr) might “favor” only two bidders.
“Why the rush? That’s (a) P171-billion project. May favored bidder ba ‘yan kaya ayaw magpa extension? (Is there a favored bidder, reason for the refusal to extend?)” Gadon said.
“I sent a message of recommendation to the Office of the President expressing my adherence to the recommendation of the ADB (Asian Development Bank) to grant the suggested extension. After all, the ADB itself is the prime mover of this extension,” Gadon added.
Gadon noted that while there are 340 pages of bid documents to be accomplished and complied with by the bidders, the December 27 deadline appears to be “tailored fit” for a particular bidder.
“The extension will also avoid possible suspicion that a favored proponent is being tailored fit to grab the award . With the staggering cost of the project – P 171 billion-, the selection process must not create any suspicion of rigging,” he pointed out.
Two members of the House of Representatives have also urged the Department of Transportation (DoTr) to heed the advice of the Asian Development Bank (ADB) to extend the bidding for the NAIA rehabilitation project for one month to ensure due diligence and to avoid perceptions of “favoritism.”
Manila Rep. Rolando Valeriano and OFW party-list Rep. Marissa Magsino backed the ADB position, arguing that extending the bidding deadline by a month would be for the best interest of the government and the public as well.
If the December 27, 2023 deadline were followed, the DoTr stands to be accused of “favoring” only two bidders and “rigging” the process, since the two bidders have submitted unsolicited proposals for the project and were likely to be the only bidders to meet the timeline.
The ADB, in an internal memo, proposed that the bidding be extended from December 27, 2023 January 29, 2024 primarily to allow potential bidders more time to prepare and participate in the selection process.
The ADB stressed that increased competition would ensure better financial outcome for the government.
The ADB memo noted that at least four more bidders for the project were seeking the extension. If the December 27 deadline pushes through, the bank said only two bidders might be able to submit the required bid documents.
Eight firms had previously bought bid documents for the project. These were the Asian Airport Consortium, Turkish firm Cengiz Insaat Sanayi ve Ticaret A.S., South Korea’s Incheon International Airport Corp., India’s GMR Group, Turkish conglomerate Limak Holding A.S., Manila International Airport Consortium, San Miguel Corp., and Spark 888 Management Inc.
“Sa ganito pong mga proyekto bihasa ang ADB. Sana mapakinggan ang opinyon nila na mapalawig ang deadline. Mas mainam ito at mas makakapili ang DoTR ng pinakakwalipikado gumawa ng proyekto dahil mas marami pa ang makakasali sa bid at mas makakapaghanda sila. Malaking halaga ang nakataya, due diligence is a must (The ADB is an expert in this project. I hope its recommendation to extend the bidding deadline is heard. This is better because more bidders could join. Big money is at stake here, hence due diligence is a must),” said Valeriano, chairman of the House Committee on Metro Manila Development.
For her part, Magsino stressed that the one-month delay in the bidding for the project “will be more beneficial.”
“If extending the deadline for proposals on these plans will allow the government to choose from more reputable companies and secure the most cost-effective agreement, then the one-month delay eventually will be more beneficial,” she said.
In its memo, the ADG “strongly” proposed the bidding date extension to “attract more bids, thus resulting in greater competition and a better financial outcome for the government.”
“It would also send a strong statement that the government is committed to ensuring a level playing field for all investors, now that recent reforms allow local and foreign investors to compete for NAIA on the same terms, without foreign ownership restrictions,” the bank said.
Gadon pointed out that the extension proposed by the ADB was called for, especially in the light of the fact that the December 27 deadline will marginalize other potential bidders.
“I agree to the proposed extension as it will give more time to potential proponents in coming up with a more realistic terms of bid that would become more advantageous for the government and, ultimately, to the public,” he fexplained.