More classroom PPP contracts to be bid out

by Lois Calderon, ANC

Posted at Aug 18 2012 02:24 AM | Updated as of Aug 18 2012 07:23 PM

MANILA, Philippines - The government says it will bid out a second batch of contracts to build classrooms following the successful auction of its PPP classroom project this week.

Education Undersecretary Francis Varela told ANC that up for auction in the 4th quarter is a P2.4-billion contract to build new classrooms in the Visayas and Mindanao.

Varela said the DepEd has not fully exhausted the total P4-billion the government allocated for the PPP classroom program this year.

This week's auction only covers lease contracts worth a combined P1.6 billion, or over P16 billion for the 10-year lease contracts, for the winning bidders who will build over 9,300 classrooms in Luzon.

The consortium of Bayani Fernando and of another group led by listed company Megawide are effectively the winners in that auction after 4 other prospective bidders didn't submit bids.

Varela said the contracts will be formally awarded next week.

"Ve're just looking at the details of the financial bids and we hope to complete the evaluation next week. Then we'll have the formal award. But it's good to go," he said.

Under the contracts, the government pays the builders leases over the 10-year term, after which the classrooms will be owned by the state.

The Philippines has a classroom shortage estimated at a total 66,800 classrooms.

The PPP project covers only 30,000, or less than half that total.

Vvarela said they hope to close the classroom gap as early as next year.