MANILA, Philippines - San Miguel Corp. president and chief operating officer Ramon Ang revealed on Thursday why the company withdrew from the bidding of the P65 billion Light Rail Transit 1 Cavite extension project.
Ang admitted the company was set to submit a bid for the project but decided to back out at the last minute.
"We were really serious in joining. In the last minute, while running the computation, the figures did not pass our hurdle rate," he said.
Based on their computations, Ang noted the company would only get a return on investments after the 20th year, even with the P5 billion subsidy offered by the government.
Ang said SMC Infrastructure Resources had already prepared all the documents for the bid.A representative even brought the boxes of documents to the venue of the bidding, but only submitted a letter expressing its regrets.
On Wednesday, a consortium composed of Ayala Corp., Metro Pacific Investments Corp and Macquarie Group submitted the only bid for the LRT Cavite project.
The DOTC said it will review the bid to make sure it meets the bidding rules. A decision could be announced by June.
The LRT 1 Cavite extension is the government's biggest public private partnership project bidded out so far. It will extend the current LRT-1 line from its present end-station in Baclaran to parts of Parañaque, Las Piñas, and Cavite.
Other companies such as Megawide, Spain's Globalvia Invesiones, San Miguel, Reghis Romero II's Ecorail Services and Malaysia's MTD Phils, had earlier expressed interest in bidding for the project.