Abaya: SM yet to appeal award of LRT-MRT ticketing project


Posted at Feb 04 2014 11:25 AM | Updated as of Feb 04 2014 07:25 PM

MANILA, Philippines – The SM Consortium has yet to formally file a motion of reconsideration on the Department of Transportation and Communications’ (DOTC) decision to award the P1.72 billion Automated Fare Collection System (AFCS) project to the AF Consortium, Transportation Sec. Jun Abaya said on Tuesday.

Abaya said the contract was awarded to the AF Consortium of Ayala Corp. and Metro Pacific Investment Corp. (MPIC) last week.

The DOTC earlier said the consortium has already complied with its requirements for the single ticketing system, adding that there is no "impediment" preventing the department from issuing the notice of award.

Abaya, however, noted that the department will accommodate SM’s appeal once it is formally filed.

“As of yesterday, wala pa kaming natanggap. Talagang karapatan ‘yan ng mga bidders, kung magfa-file ay ipoproseso natin,” Abaya told dzMM.

SM Prime Holding, Inc. president Hans Sy earlier contested the awarding of the contract, saying “the SM Consortium submitted the superior bid, which was an unconditional offer to pay the government the full bid amount of P1.008 billion upfront.”

Sy said the AF Consortium’s bid involved an initial payment of P279 million. The balance of P800 million will then be paid in transaction fees when ridership volume reaches 750 million transactions per quarter.

“Under the terms of the AF Consortium bid, 72% of the total amount will only be paid to the government in 2024 or 2025, and only if the conditional volume is met. Otherwise, the government will not be able to collect anything at all,” he explained.

Sy also said the AF Consortium’s bid violated the Bids and Awards Committee’s requirement for an unconditional and unqualified bid, which the SM Consortium already raised in letters to the DOTC on January 22 and January 29.