Cebu consortium tops water supply bid
CEBU Bulk Water Consortium emerged the top bidder during yesterday’s bidding for Cebu province’s bulk water supply project.
This means the Manila Water Consortium, the original project proponent, has 30 days to match the offer of Cebu Bulk Water Consortium, which was represented yesterday by its vice president Melanchthon Bernil.
Gov. Gwendolyn Garcia set Jan. 15 as the deadline for this.
Three bidders attended yesterday’s submission and opening of the technical and financial proposals at the Capitol with Governor Garcia.
The bidders were Cebu Bulk Water Consortium, Metro-Maynilad Consortium and Manila Water Co.
Criteria for the evaluation of the financial proposal gave 50 percent weight to the agency with the lowest water tariff and 50 percent for the highest project internal rate of return (PIRR)
Cebu Bulk Water Consortium emerged the top bidder with P13.95 per cubic meter tariff inclusive of value added tax (VAT) with a PIRR of 19.26 percent.
Metro-Maynilad came in second place with an P18.71 per cubic meter tariff without the VAT and a PIRR of 14.51 percent.
The main proponent of the project, Manila Water Consortium, submitted a water tariff of P24.90 per cubic meter with a PIRR of 14.5 percent.
Under a Swiss Challenge System observed in the bidding process, the original proponent, Manila Water Consortium, is allowed to match the best offer made by third-party bidders.
The Joint Investment, Selection and Evaluation Committee has six days to evaluate the proposals presented yesterday.
Under the Capitol’s calendar, the notice of award will be issued on Jan. 18, 2012.
Vilma Deray, Manila Water Consortium business development manager, told reporters they will review their proposal and see if they could match the challenger’s bid.
Provincial Board (PB) member Jude Sybico, a member of the committee, said they will choose the bidder whose bid is most beneficial for the province and consumers.
In her July 15 State of the Province Address, Governor Garcia said she successfully negotiated the unsolicited offer with a consortium led by Manila Water Company Inc.
The project cost was pegged at P1.5 billion.
Manila Water Co. submitted its proposal for bulk water supply to the governor last April.
Manila Water Co. offered to supply 35 million liters per day of potable water sourced from the Luyang River in Carmen town to meet the growing water requirements of northern towns of Liloan, Compostela, Consolacion, Cordova and the cities of Danao, Mandaue and Lapu-Lapu./Correspondent Carmel Loise Matus
