Swiss challenge set for P15-B Clark project
The Bases Conversion and Development Authority (BCDA) is opening a nearly P15-billion water and wastewater project in New Clark City to competing bids, setting the stage for a Swiss Challenge against original proponents Maynilad Water Services Inc. and Korea Water Resources Corp. (K-Water).
In an invitation for comparative proposals, BCDA said interested challengers may begin securing bidding documents on Sept. 28 for the project, which carries an estimated investment of P14.8 billion.
The competitive challenge will run for 90 days under a two-stage bidding process. This starts with the prequalification of prospective challengers before the submission of technical and financial proposals.
Maynilad and K-Water submitted the unsolicited proposal in January for the construction, operation and maintenance of New Clark City’s water supply and wastewater infrastructure under a 25-year concession, subject to extension.
The BCDA granted the consortium original proponent status (OPS) in August following negotiations over the proposal.
Valid for a year
The OPS, which is valid for one year, gives the consortium the right to match the best competing offer during the Swiss Challenge. In case of a tie between the original proponent and a challenger, the public-private partnership, or PPP, project will be awarded to the original proponent.
Under the right-to-match mechanism, Maynilad and K-Water will be given 30 calendar days to match or beat the best financial offer submitted by a challenger.
If their financial proposal remains more advantageous to the government, or if no competing bid emerges, the project will be awarded to the original proponents.
Among qualified challengers, the bidder offering the lowest initial tariff for the first 12 months of operations and maintenance will be declared as having the most superior comparative proposal.
Interested parties must pay a nonrefundable P1-million participation fee, the BCDA said.
The project covers both public and nonpublic utility assets, with a joint venture special purpose company tasked with constructing, operating and maintaining the nonpublic assets. It will also build public utility assets that will be leased to a qualified operator for operation and maintenance.
All project assets will eventually be transferred to the government at the end of the concession period.
The project seeks to establish a modern water supply and wastewater system as New Clark City prepares for further industrial and commercial development.
The BCDA earlier said the project could raise the city’s water capacity to about 150 million liters per day (MLD) from the current 20 MLD to 30 MLD.
