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Wednesday, May 17, 2006
Firm gets chance to prove capability
Questions on the financial capability of the firm that won the bidding for the development of Capitol’s Banilad lot will not prevent it from getting the notice of award today.
Provincial Board (PB) Member Victor Maambong, a member of the Economic Enterprise Committee (ECC), explained that after more than an hour of meeting yesterday, they agreed to give the notice of award to Philippine-Beijing Motors Corp (PBMC).
“This will open the floodgates for us to ask questions as to their financial capability and in relation to the existence of a consortium,” Maambong explained.
Bank papers
The firm is given two weeks to come up with bank documents to prove that they are indeed financially capable for the undertaking.
Anyway, Capitol reserves the right to cancel the notice of award in case they fail to prove their financial capability.
A newspaper report had raised questions on the financial capability of the PBMC, which applied for a financial rehabilitation plan for its failure to pay its monetary obligations with Metrobank.
PBMC plans to put up a P1.8-billion hotel and commercial complex in Banilad.
Its representatives sought an audience with EEC yesterday to explain that the newspaper report was not accurate.
Maambong said the representatives explained that the case has been disposed of by the court. Since it granted the application for rehabilitation, there was no bankruptcy.
The representatives also revealed that one of their partners is Hainan Airline of China, which owns more than a hundred airplanes and hotels in Mainland China.
Emergency meeting
The EEC yesterday held an emergency meeting presided over by Vice Gov. Gregorio Sanchez Jr.
PB Member Juan Bolo, who chairs the committee on properties, in an interview before the meeting, said that if the winning bidder fails to come up with evidence that they are financially capable, then the Capitol will award the contract to the next highest bidder, which is the SM Hypermarket.
SM Hypermart’s bid was for a P299-million project. The third firm, Cebu Overseas Hardware, was P266 million.
Both planned to put up a supermart if they would win the bidding, Maambong said.
Beijing Motors Corp. will lose some P2.5 million if they fail to get the contract. This is because the bidder’s bond of P2.5 million and bidder’s fee of P70,000 will no longer be refunded.
Capitol has ventured into a build-transfer-operate scheme. This means the winning bidder will build a facility then transfer its ownership to Capitol after its completion.
The firm will then operate it for 25 years but it has to pay rental for the lot and will also give sales’ share to the Capitol. (MBG)
For Bisaya stories from Cebu. Click here. (May 17, 2006 issue)
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