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Chinese Company has not “bagged" Ph Infrastructure Project

Contrary to reports published by the Philippine Daily Inquirer, Chinese Company China Communications Construction Company Limited (CCCC) subsidiaries China Road and Bridge Corporation and China Harbour Engineering Company Ltd. have not “bagged” the Philippine infrastructure projects to construct the Subic Clark Railway project and the Fort Bonifacio to NAIA Bus Rapid Transit (BRT) system.

The Memoranda of Understanding (MOUs) signed by these two companies and the Bases Conversion and Development Authority (BCDA) only provided for the conduct of a Feasibility Study regarding the project and is not and was never intended to be a contract award.

“We admire the diligence of the Philippine Daily Inquirer in finding the World Bank document regarding CCCC and its subsidiaries. However, the same diligence should have been exercised in simply reading the MOU that was signed which very clearly states that the MOU is only for the conduct of a study for the project at the cost of the Chinese company and NOT the Philippine government. It is by no means an award of the contract. Hence, the headline of the article is completely false and bordering on irresponsible,” said Vince Dizon, President of BCDA.

BCDA also assured the media and public that if and when these projects will move forward after their feasibility has been determined, the projects will all follow the most rigorous and stringent procedures and requirements of Philippine government public procurement under our laws and regulations.

“All these projects will be subject to the strictest rules and most rigorous processes of public procurement under Philippine law. But we are very far from that point in the process, we are only at step 1–the feasibility study–and to make an assertion that the project has already been “bagged” or awarded to a company is completely false and irresponsible,” Dizon added.

 

The MOU also clearly states the following:

1. The MOU is very limited in scope. The Philippine government has no obligation to the Chinese company other than to let it conduct the feasibility study at its own cost. It is not even bound to consider the results of study. Moreover, the MOU clearly states that the Parties are not bound to enter into further agreements with each other;

2. The MOU is non-exclusive. This means that the Philippine government can consider other companies or groups interested in the project;

3. The MOU provides that the cost of the feasibility study (which may range anywhere from 1-2 million USD) is borne by the company and NOT the Philippine government;

4. The eventual bidding of the project will be under the procurement laws, rules and regulations of the Philippines.

 

Finally, the BCDA assured the media and public that if, at the time of public bidding for these projects, these companies are deemed ineligible based on our strict procurement qualification rules and regulations then these companies will not be qualified to participate in the bidding.

Full access to the signed MOUs for BCDA's 4 bigticket projects via this link:  http://bit.ly/BCDAsigns4MOUsforbigticketprojects

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