No bids for $2.7 bln Philippine infrastructure project ahead of May election

Hanshin Construction

28/03/2016 10:28

By Neil Jerome Morales 
    MANILA, March 28 (Reuters) - A major Philippine 
infrastructure project received no bids by a Monday deadline, 
underscoring worries about the viability of the project and 
concern that plans could be changed or even scrapped by a new 
administration after elections in May. 
    The $2.7 billion scheme to build an expressway and dike was 
slated to be the second-largest infrastructure project under 
President Benigno Aquino's Public-Private Partnership (PPP) 
programme which aims to upgrade ageing roads, airports and 
schools. 
    Isaac David, president at MTD Philippines, part of a 
consortium that had looked at bidding, said the project was 
commercially risky because of the May 9 poll, as well as due to 
legal questions over the government's right to turn a portion of 
a lake into land which would be then sold by the private sector. 
    MTD Philippines was part of the Alloy Pavi Hanshin LLEDP 
consortium, which also included South Korea's Hanshin 
Construction Co Ltd  004960.KS  and the family of former 
Philippine Senator Manuel Villar Jr. 
    Others that had also considered bids included a unit of San 
Miguel Corp  SMC.PS  as well as another group composed of Ayala 
Land Inc  ALI.PS , SM Prime Holdings Inc  SMPH.PS , Aboitiz 
Equity Ventures Inc  AEV.PS  and Megaworld Corp  MEG.PS . 
    Public Works and Highways Secretary Rogelio Singson told 
reporters that his department had no immediate plans to relaunch 
bidding. 
    Aquino's six-year term will end in June. Four presidential 
candidates to succeed him are in a tight race ahead of the poll. 
    The government has awarded 12 projects worth $4.3 billion 
under the PPP scheme since 2010. It has outlined plans for 14 
additional projects worth $12 billion. 
     
($1 = 46.4750 Philippine pesos) 
 
 (Reporting by Neil Jerome Morales; Editing by Edwina Gibbs) 
 ((neiljerome.morales@thomsonreuters.com; +632 8418914; Reuters 
Messaging: neiljerome.morales.thomsonreuters.com@reuters.net)) 
 
Keywords: PHILIPPINES INFRASTRUCTURE/