1 bidder qualifies to build P1.3B Capitol center

Only one bidder has qualified to undertake the construction of the P1.3 billion Capitol Resource Center.

Jone Siegfred Sepe, vice chairman of the Bids and Awards Committee, said only WT Construction passed the requirements among the two bidders. Sepe said there were at least seven companies that expressed interest to join in the bidding when it was advertised since October 15 but only WT Construction and Finmat International Resources Inc. have submitted their bid documents.

According to Sepe, Finmat International Resources Inc. failed during the first screening process because it has yet to undertake a project that cost at least P600 million.

He explained that under the procurement law, a bidder submits two sets of envelopes-- one for the financial documents and the other contains legal and technical papers. Only the technical documents were opened which revealed the project history of the company. When at least one is missing or insufficient, the bidder is automatically disqualified because it is only a pass-or-fail system.

WT Construction passed all the standard requirements. Sepe said WT Construction will proceed to the post-qualification level. Once it passes through the validation, it will be proclaimed as the winning bidder.

The process will take about 12 days to finish. In that period, the BAC will verify whether the documents submitted are authentic.

If things go well, Sepe said the contract will be awarded before the year ends provided that the Cebu Provincial Board will give the governor the authority to enter into a contract with the winning bidder.

Meanwhile, Budget Officer Danilo Rodas said that the provincial government still needs to loan P1.5 billion to undertake the project despite Cebu’s financial status as the richest province in the country.

He clarified that 95% of the Capitol's assets are noncash and therefore cannot be spent to actualize the project.

The remaining assets of the Province, he said, will be used to run the regular operations of the Capitol in order to deliver the basic services and perform its fundamental functions.

The Capitol operates through utilizing the revenues from its income generating investments and tax collections as well as from the Internal Revenue Allotment (IRA).

Rodas said that entering into a loan agreement is the preferred course because it will not impair the Capitol operations.