PBBM urged to extend deadline bid of NAIA project

Presidential Adviser on Poverty Alleviation Secretary Larry Gadon on Monday disclosed that he had already advised President Ferdinand Marcos, Jr. to extend the bidding deadline for the P171 billion Ninoy Aquino International Airport rehabilitation project as the original deadline set by the Department of Transportation may "favor" only two of prospective project proponents.

"Why the rush? That's (a) P171 billion project. May favored bidder ba 'yan kaya ayaw magpa extension?" Gadon asked, stressing that the president had been apprised of the developments on the ground.

"I sent a message of recommendation to the Office of the President expressing my adherence to the recommendation of the ADB (Asian Development Bank) to grant the suggested extension. After all, the ADB itself is the prime mover of this extension," the Palace official further said.

Gadon bewailed that while there are 340 pages of bid documents to be accomplished and complied with by the bidders, the December 27 deadline appears to be "tailor fit to a favored bidder."

"The extension will also avoid possible suspicion that a favored proponent is being tailored fit to grab the award. With the staggering cost of the project — P 171 billion— the selection process must not create any suspicion of rigging," he pointed out.

On Sunday, Gadon and two lawmakers from the House of Representatives urged the DoTr to heed the advice of the Asian Development Bank to extend the bidding for the NAIA rehabilitation project for one month to ensure due diligence and to avoid perceptions of "favoritism."

If the 27 December 2023 deadline is followed, the DoTr stands to be accused of "favoring" only two prospective bidders and "rigging" the process, as these two have submitted unsolicited proposals for the project and are likely to be the only bidders to meet the timeline.

The ADB, in an internal memo, proposed that the bidding be extended from 27 December 2023 to 29 January 2024 primarily to allow potential bidders more time to prepare and participate. It said that increased competition will ensure better financial outcome for the government.

The ADB memo noted that at least four more bidders for the project are seeking the extension. If the 27 December deadline pushes through, the bank said only two bidders may submit the required bid documents.

Eight firms had previously bought bid documents for the project. These are Asian Airport Consortium, Turkish firm Cengiz Insaat Sanayi ve Ticaret A.S., South Korea's Incheon International Airport Corp., India's GMR Group, Turkish conglomerate Limak Holding A.S., Manila International Airport Consortium, San Miguel Corp., and Spark 888 Management Inc.

𝗠𝗮𝗻𝗶𝗹𝗮 Rep. 𝗥𝗼𝗹𝗮𝗻𝗱𝗼 𝗠. 𝗩𝗮𝗹𝗲𝗿𝗶𝗮𝗻𝗼 and 𝗢𝗙𝗪 𝗣𝗮𝗿𝘁𝘆 𝗟𝗶𝘀𝘁 𝗖𝗼𝗻𝗴. 𝗠𝗮𝗿𝗶𝘀𝘀𝗮 𝗣. 𝗠𝗮𝗴𝘀𝗶𝗻𝗼 both backed the ADB position, arguing that extending the bidding deadline by a month would be in the best interest of the government and the public as well.

"Sa ganito pong mga proyekto bihasa ang ADB. Sana mapakinggan ang opinyon nila na mapalawig ang deadline. Mas mainam ito at mas makakapili ang DoTR ng pinakakwalipikado gumawa ng proyekto dahil mas marami pa ang makakasali sa bid at mas makakapaghanda sila. Malaking halaga ang nakataya, due diligence is a must," Valeriano, 𝗖𝗵𝗮𝗶𝗿𝗺𝗮𝗻 of the 𝗛𝗼𝘂𝘀𝗲 𝗖𝗼𝗺𝗺𝗶𝘁𝘁𝗲𝗲 𝗼𝗻 𝗠𝗲𝘁𝗿𝗼 𝗠𝗮𝗻𝗶𝗹𝗮 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁, said.

For her part, Magsino stressed that the one-month delay in the bidding for the project "will be more beneficial."

"If extending the deadline for proposals on these plans will allow the government to choose from more reputable companies and secure the most cost-effective agreement, then the one-month delay eventually will be more beneficial," the lady lawmaker said.

In its memo, the ADG "strongly" proposed the bidding date extension to "attract more bids, thus resulting in greater competition and a better financial outcome for the government."

"It would also send a strong statement that the government is committed to ensuring a level playing field for all investors, now that recent reforms allow local and foreign investors to compete for NAIA on the same terms, without foreign ownership restrictions," the bank said.

Gadon, meanwhile, pointed out that the extension proposed by the ADB is called for, especially in the light of the fact that the 27 December deadline will marginalize other potential bidders.

"I agree to the proposed extension as it will give more time to potential proponents in coming up with more realistic terms of bid that would become more advantageous for the government and, ultimately, to the public," he further explained.