PROCUREMENT NEWS

Philippines : GOVT. to enter negotiated deal to quickly replace maintenance provider for METRO MANILA's railway

Published 10 Mar 2015

The Department of Transportation has announced that the Government will enter into a negotiated deal to accelerate the process of replacing the current maintenance provider for Metro Manila's most congested elevated railway, with a scheduled date of March-end to make the selection. Transportation representative Michael Arthur C. Sagcal said declaring a contractor for the maintenance concession "is dependent on the prerequisites such of completion of mandatory review and GPPB (government procurement policy board) approval."

He said : "(The board's) Its approval is needed for any emergency or negotiated procurement. We can’t start the process without it."
When no bidders came forward, the department announced a second failed bidding for the 3-year P2.4-billion maintenance contract, in January. The initial failed bid in October had 5 potential bidders: the Busan Transport Corp., Mosan-Inekon Phils. Ltd. Co., SMRT International Pte. Ltd., Miescorrail, Inc., and D.M. Consunji, Inc. All the five consortia failed to follow through on their initial interest.

D.M. Consunji President and Chief Executive Officer Isidro A. Consunji explained the reason why his company did not bid for the contract, saying : "The period is too short to be able to completely maintain the railway; three years is too short. One year is not even enough to buy rail parts. No issue with the project cost. It’s just that we don’t find the period realistic."

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