US firm sole bidder in Philippine plane tender

Reuters

Posted at Oct 11 2010 05:29 PM | Updated as of Oct 12 2010 01:29 AM

MANILA, Philippines - A unit of US firm United Technologies Corporation is set to be awarded a $40 million Philippine Air Force contract for a refurbished Hercules C-130H plane after it was the sole bidder, a defence official said.

Ernesto Boac, a retired general and head of bids and award committee, said the Air Force would test the Hercules before awarding the contract to Derco Aerospace Inc for its bid of P1.747 billion ($40.2 million).

The transport plane, to fitted with the latest avionics and engines, would be delivered within 12 months of the contract being awarded.

The Philippines has three C-130 transports, but only one is currently operational. It is used for deployment of troops, delivery of logistics and relief goods during disasters.

Last week, Manila suspended two tenders for army helicopters worth $90 million due to suspicions of graft. The Philippines is spending more than $150 million this year upgrade capability to fight rebels.