The Philippine Department of Public Works and Highways (DPWH) has prequalified three of the four teams which submitted expressions of interest last month for the Laguna Lakeshore Expressway-Dike (LLED) public-private partnership project.
These comprise Manila-based San Miguel Corporation; consortium Team Trident, which includes Philippine conglomerates Ayala Land, Aboitiz Equity Ventures, SM Prime Holdings Incorporated and Megaworld Corporation; and the Alloy-PAVI-Hanshin LLEDP Consortium, which comprises Malaysia’s Alloy MTD Capital Berhad, Manila-based Prime Asset Ventures and Korea’s Hanshin Engineering Construction.
The project, approved in June last year, is the largest public private partnership (PPP) undertaken under the Aquino administration, with total project investment estimated at Ph122.8 billion (€2.6 billion; $2.76 billion), of which Ph64.914 billion will be for the development of a 47-kilometre flood control dike-highway.
According to DPWH undersecretary Rafael Yabut, DPWH is currently considering adding Rainbow Group, which was initially disqualified, to the shortlist.
The Rainbow Group is made up of Rainbow Holdings, Pt. Nusa Konstrukski Enjiniring Tbk, The No. 4 Metallurgical Construction Company of China, Shindong-Ah Construction Company Ltd. (SCC), Korea Expressway Corporation, Sta. Lucia Land, Kunhwa Engineering & Consulting Company and Dong Myeong Engineering Consultants & Architecture Company.
Bidding documents are set to be released next week. Prequalified teams will have to submit their technical and financial proposals on or before 6 July 2015.
The project is expected to be awarded on 21 August this year, with construction to start the following month.
The building of a 47-kilometre flood control dike – on top of which will be a six-lane expressway – from Taguig City to Los Baños involves the reclamation of 700 hectares west of the expressway-dike, the cost of which is valued at about P57.897 billion.
The project will be developed on a design, build, finance, operate and maintenance (DBFOM) basis. The contract will have a period of 37 years, including seven years for design and construction and 30 years for operation and maintenance.
Businesses and residential areas are expected to take root on the reclaimed land.
American law firm Jones Day has been mandated by the PPP Center to provide legal, financial and bid management support on the project.