SMC seeks Palace intervention on bidding for expressway project

By Lawrence Agcaoili, The Philippine Star

Posted at Jul 02 2014 07:36 AM | Updated as of Jul 02 2014 03:36 PM

MANILA- The award of the P35.4-billion Cavite-Laguna expressway project faces further delay after diversified conglomerate San Miguel Corp. (SMC) sought the intervention of Malacañang following its disqualification from the bidding.

Documents obtained from the Department of Public Works and Highways (DPWH) showed SMC unit Optimal Infrastructure Development Inc. filed a Notice of Appeal before the Office of the President on June 26.

This would further delay the issuance of the Notice of Award to Team Orion, a 50-50 partnership between conglomerate Ayala Corp. and Aboitiz Land Inc. that submitted the highest bid for the project.

In its 38-page appeal, Optimal Infrastructure questioned the DPWH Resolution dated June 11 disqualifying them from the bidding of the 47-kilometer toll road project.

The resolution stated that SMC failed to comply with at least two provisions of the Instruction to Bidders regarding the bid security requirement of an irrevocable standby letter of credit amounting to P355 million that is also valid for 180 days from the bid proposal submission date.

The Office of the President directed the DPWH to defer the implementation of the resolution while the appeal is pending.