MAGSAYSAY PARK BID

TWO weeks after the resolution was passed by the city council authorizing the project, Vice Mayor Alvin Fernandez has exposed more loopholes in the controversial bidding for the development of a tourism building at the former Magsaysay Park to indicate a failed bidding.

But this will still not stop Mayor Benjamin Lim from proceeding with the project when he told newsmen that the project construction is set to start next month.

In his blog site www.Alvin.prepys.com, the vice mayor posted on Wednesday a new entry saying that the printed instruction to bidders issued by the Dagupan City   government   belies claims of Councilor Teofilo Guadiz III that “bidders are not supposed to submit the proposed rental rates to be charged to future tenants”.

Over the past weeks even before the resolution was passed, the vice mayor has been adamant in denouncing the irregularities that reportedly attended the bidding for the project.

Those who opposed the resolution sponsored by Councilor Nicanor Aquino, were Councilors Farah Decano, Michael Fernandez and Jose Netu Tamayo. Councilor Alex de Venecia who was absent during the special meeting manifested earlier his objection to the resolution premised on the committee report submitted by Councilor Teolfilo Guadiz III.  

Fernandez said the evaluation of the financial proposal, which is supposed to include the rental rates, is contained in the instruction to bidders. However, not one of the bidders, including the winner — Metrostate Realty Development Corporation (MRDC) — submitted their proposed rental rates.

The project will be undertaken under a build-operate-transfer (BOT) scheme.

Meanwhile, Lim was quoted in a talk with newsmen at the city hall that MRC will commence the construction of the P84 million tourism building sometime next month to avoid its coverage by the election ban.

BOT LAW

The bidders, Fernandez said, were instructed to submit proposed tolls/fees/rentals/other charges; and present worth of the proposed users (future tenants) over the fixed term based on the discounting rate and foreign exchange rate prescribed in the bidding documents in accordance with Section 4.3 of the Implementing Rules and Regulations of the BOT law contained in Republic Act No. 6957 as amended by RA No. 7718.

Under the guidelines, Fernandez said, assessment and comparison of the financial proposal of bidders shall be based on the lowest present value of the proposed tolls/fees/ rentals and other charges over a fixed term for the facility to be constructed, rehabilitated, operated and maintained according to the prescribed minimum design and performance standards, plans and specifications.

The vice mayor said based on this, the lowest present value could be computed on the cash flow of the project, adding that the lease rate the proponent is to pay the government is a cash flow, including the rental rates of the payment of the structure.

“What I do not understand during the deliberations in the Sangguniang (Panlungsod) is the persistent claim of the people defending the bidding process and Metrostate that there was no need for the proponent to submit the cash flow,” he said.

He maintained that if there was no cash flow submitted, there was practically no basis for the evaluation by the bidding committee on the financial proposal, thus clearly making the same a “failed bidding”.

CONFLICTING INTERESTS

Fernandez also pointed out that another instruction to bidders by the city government is that “all proponents found to have conflicting interests shall be disqualified to participate.”

Three bidders responded to the invitation to bid for the Magsaysay Park Development, including Gamma Construction, which was disqualified later; JM Feliciano Construction and S and F Realty in joint venture with LXS Construction.

Fernandez expressed his belief that the two remaining bidders were disqualified too based on the issue of filial relationship as the owners of JM Feliciano cannot bid against the owner of S and F Realty being relatives.

“Your uncle cannot be your opposing bidder in any bidding process,” Fernandez said, referring to the printed instruction to bidders by the Dagupan City government.

The instruction stated that all proponents found to have conflicting interests shall be disqualified to participate.

Paragraph (d) of the instruction reads: “A proponent has a relationship, directly or through parties, that puts them in a position to have access to information about or influence on the bid of another proponent or influence the decisions of the city government regarding this bidding process.”

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