Regulators may reopen bidding for Laiban dam
BusinessWorld | 07/27/2009 11:42 AM
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MANILA - Bidding for the multibillion-peso Laiban dam project could be reopened to address legal concerns, the Manila Waterworks and Sewerage System (MWSS) said.
"We will tackle the matter with Office of the Government Corporate Counsel (OGCC) on Thursday and check if there are legal impediments and if it is justified [to do a rebid]," MWSS Deputy Administrator Isaias R. Bongar, Jr. said in a phone interview.
"[Should the OGCC agree], we will come up with a formal letter [requesting the staging of a fresh auction] and submit it to them," he said.
San Miguel Corp. — the sole bidder for the P52-billion project that has courted controversy — will be asked sign a waiver stating it will not file suit if a rebidding is conducted, Mr. Bongar said.
The diversifying food and beverage conglomerate — through unit San Miguel Bulk Water Co. — had submitted an unsolicited bid for the Laiban project and earlier this month the MWSS gave interested parties a week to submit counteroffers.
None were received and the expected awarding of the project to San Miguel has since come under scrutiny. The MWSS and San Miguel have been criticized over the secrecy surrounding the deal, which supposedly includes a government guarantee.
"Under the rules, if nobody submitted a letter of intent, the next step is to award it (the project) to the company after it complies with all the requirements," Mr. Bongar said.
As far as the MWSS is concerned, the process of awarding the deal to the conglomerate is under way.
"We have already given a letter to San Miguel stipulating the conditions and the requirements that it has to submit, which in turn the we will evaluate," Mr. Bongar said.
San Miguel has a month to comply and its proposal will then be reviewed by agencies including the National Economic and Development Authority.
"If everything goes well [and if we will not reopen the bidding], we hope to award it later this year or early next year since we need the water by 2015 and the dam will require at least four years to be constructed," Mr. Bongar said.
The MWSS insists there is nothing secret or illegal about the project, pointing out that it aims to address a projected water supply lack for Metro Manila.
San Miguel, meanwhile, said it would not be surprised if the MWSS decides to stage a fresh auction.
"Now if you ask me if San Miguel is agreeable [to a rebid] Yes, come up with a challenger, a letter [of intent], better terms and open that," San Miguel President Ramon S. Ang said.
"Hindi kami naghahangad na kami ang gumawa ng lahat (We are not saying that we want to do everything)," he added. From a report by Kristine Jane R. Liu, BusinessWorld
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