Capitol could have ‛saved money’ sans equipment bidding issues

At least P100 million has been earmarked this year for the construction, rehabilitation, and maintenance of roads in Cebu, a Capitol official said.

However, Provincial Budget Officer Danilo Rodas, the designated focal person for the procurement of heavy equipment, said the provincial government could have saved the money for other developmental projects if the purchase of P250 million worth of heavy equipment has not been stalled since 2015 due to bidding issues.

“Gi-contract out lang sa kay wa pa man lagi ta'y heavy equipment,” he said.

It was earlier reported that Capitol allegedly rigged the bidding process to favor a contractor, which submitted the highest bid. The project was also marred with accusations of overpricing.

The joint venture of RDAK Transport Equipment Inc. and Nelson Lee Construction submitted the lowest calculated and responsive bid of P235 million, followed by Civic Merchandising with P237 million.

But ConEquip Philippines was declared winning bidder for its P250 million bid, despite having been disqualified in the prequalification stage.

RDAK and Civic were post-disqualified allegedly because they did not meet the specification requirements. Civic was disqualified for its failure to comply with the specifications as the company reportedly only offered 74 horsepower instead of the minimum 100hp.

These controversies, in turn, have also stalled the loan that would supposedly finance the planned purchase.

Capitol intends to borrow P200 million from the Land Bank of the Philippines (LBP) to fund the acquisition of various heavy equipment. The P50 million will be shouldered by the province.

At present, the provincial government is still waiting for the Monetary Board of the Bangko Sentral ng Pilipinas to approve the loan as part of the requirements with LBP.

“Naapil na ang opinion sa agenda sa BSP last week. We are expecting na ma-release ang opinion within the week. Then we will process the loan with LBP,” Rodas said.

He said the P250 million worth of heavy equipment is expected to be acquired by June. In April this year, the province reapplied for a P200-million loan with the LBP after its loan extension expired in January this year.

The province failed to consummate the second loan extension granted by the bank due to insufficient documents, Rodas said.

It can be recalled that the province asked twice for the extension of its loan application with LBP – in April and October 2016 – pending the completion of the “pre-release documentary requirements.”

But after the failure of bidding and several rebidding attempts for the purchase of equipment, Capitol's Bids and Awards Committee finally declared the joint venture of ConEquip and RDAK as the bidder with the single calculated and responsive bid amounting to P227.4 million during the opening of bids on November 25 last year.