Pasay City, Philippines. The SM Consortium, which was one of the bidders for the Automated Fare Collection System (AFCS) Project for LRT Lines 1 and 2 and MRT 3, filed another Motion for Reconsideration (MR) at the Department of Transport and Communications (DOTC) today seeking to further clarify its position with regard to the AFCS.

The first MR was filed by the SM Consortium last 03 February 2014. A response finally arrived at 7:20 pm after office hours on Friday 28 March 2014.

The second MR raised the following issues:

1. Despite submitting the more advantageous bid, the SM Consortium’s bid was rejected by relying purely on technical considerations, which runs contrary to the intent of public bidding law and rules that mandates the Government to choose the most advantageous bid.

2. Relying solely on net present value, instead of full economic value in determining the highest bid may be counterproductive on the premise that the Government will forego the benefits of getting the premium today (upfront payment of the Project cost of Php1.088 billion) compared with receiving the payment on a staggered basis, with the bulk still after 9 and 10 years, depending on ridership volumes.

3. Other Consortium’s claim that the ridership of 750 million by year 9 is achievable was not fully substantiated. All the technical realities (platform limitation, inadequate signaling system, insufficient fully operational trains, and other technological limitations) show that the target ridership is highly improbable.

4. That being the condition to pay the remaining balance by years 9 and 10, it will allow the other Consortium not to pay PhP 809,112,400.00

5.  There is an apparent conflict of interest concerning the members of the other Consortium which suggests its ownership of LRT 1, or LRT 2, or MRT 3 or any railway system to be developed is with the same group. This falls within the definition of a “Conflict of Interest” under Section V-04 of the Instructions to Prospective Bidders.


Monday, March 31, 2014