Cebu City, Cordova town ask investor for P279-million bond
One early concept of the 3rd Cebu-Mactan Bridge was proposed by the University of San Carlos in 2013 but the final design is up to the private investor who wins the right to build it as a joint venture project with Cebu City and the Municipality of Cordova.
Both Cebu City Hall and Cordova town are asking for a P279-million proposal security or bond from the private developer of the proposed third Cebu-Mactan bridge.
The amount represents one percent of the total project cost of P27 billion.
The cost of the project, which will be run as a toll bridge, increased from an earlier estimate of P17 billion.
In a letter dated November 12, City Administrator Lucelle Mercado asked Metro Pacific Tollways Development Corp. CEO and president Ramoncito Fernandez to pay a security amount by November 18.
This will be jointly payable to Cebu City and the municipality of Cordova which the toll bridge will connect.
Mercado heads Cebu City’s Joint Venture-Selection Committee (JVSC) for the unsolicited third bridge project proposal.
After detailed negotiations for the project were completed last October 9, Cebu City Hall will proceed to the next stage of the proposed joint venture which is the competitive stage or the Swiss challenge proper.
She said project costs went up because the 3rd bridge would also include acquisition of road right of way and the beautification of the Guadalupe River easement.
The proposed eight-kilometer bridge will start at the mouth of the river to Shell Island then to Cordova in Mactan.
Cebu City Hall and Cordova will publishing separate invitations to bid and submit comparative proposals for the third bridge project.
Private sector proponents should submit their expression of interest to submit comparative proposals by December 7.
“If no notarized EOI from a proper entity is received by December 07, 2015, the Project shall be awarded to the Original Proponent and the Bidding/Competitive Challenge process is deemed terminated,” read their invitation.
Once a private proponent is qualified, it has to submit a comparative proposal within 30 days.
After this, MPTDC, the original proponent, will be given 10 days to match a higher offer.
To qualify, an nterested proponents should have completed a similar project with a minimum capitalization of P10 billion and have access to a credit facility of at least P18 billion.
They should also obtain bidding documents by paying a non-refundable amount of P1 million which will be equally split between Cebu City and Cordova.
Mercado said Cordova will publish their invitation this November 18 while Cebu City will publish theirs on November 25.
“The proposal security, which may be in cash, certified check, manager’s check, letter of credit, or bank draft/guarantee issued by a reputable local/foreign bank, or a surety bond callable on demand issued by the GSIS or an entity duly registered and recognized by the Office of the Insurance Commissioner, or any combination thereof shall be jointly payable to the City of Cebu and the Municipality of Cordova, Cebu,” read the letter.
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