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Gov’t seeks bidders for P74-B Davao bus system


By Arjay L. Balinbin, Senior Reporter

THE GOVERNMENT is now seeking bidders for the design-and-build contracts for a P73.93-billion bus system project in Davao City.

In its invitation for bids, the Department of Transportation (DoTr) said the Philippine government has applied for financing from the Asian Development Bank (ADB) for the Davao Public Transport Modernization Project, which is also known as the Davao High Priority Bus System Project.

ADB said the project intends to introduce a modern bus system in Davao City to replace the current public utility jeepneys. The project will include new buses, optimized bus routes, bus stops, bus depots or terminals, and improved roads.

The DoTr is seeking bidders for three contract packages, including a contract that covers the construction of Buhangin Depot, Calinan Depot, and Calinan Driving School.

The second contract is for the Toril Depot and Terminal, Bunawan Terminal, and Calinan Terminal, while the third contract covers the civil works along bus routes, including bus stops, bus lanes, and other pedestrian improvement works.

It will be an open competitive bidding, and will follow ADB’s “Single-Stage: One-Envelope” procedure. This means that bidders will submit bids in one envelope containing both the price proposal and the technical proposal. The envelopes will be opened in public at the date and time advised.

After evaluation and approval, the contract will be awarded to the bidder whose bid has been determined to be “the lowest evaluated substantially responsive bid,” the multilateral lender says on its website.

In a phone message to BusinessWorld, Transportation Assistant Secretary Goddes Hope O. Libiran said the civil works alone will cost P19.71 billion, while the bus fleet, both diesel and electric, will cost P21.17 billion.

The deadline for the submission of bids is Jan. 6, 2022, the DoTr said.

“Bidders may bid for a single contract only or for any combination of contracts. In case the bidder would wish to submit bids for more than one contract, such bids should be submitted independently and not combined into a single bid,” it added.

The DoTr will look at and compare bids for each contract separately or “multiple contracts combined” to arrive at the “least-cost combinations.”

The department said it will also consider the discounts offered by bidders for the award of multiple contracts.

Key qualifications for the bidders include an average annual construction turnover of more than $109 million for the first contract, $101 million for the second contract, and $119 million for the third contract.

Bidders must prove that they have minimum available finances of $14 million for the first contract, $13 million for the second contract, $15 million for the third contract.

They should also prove that in the past 10 years, they have “successfully or substantially (80%)” completed at least one similar project that is at least one kilometer and a project of more than $71 million for the third contract.

Bidders should also be able to furnish a bank security of $820,000 for the first contract, $760,000 for the second contract, and $890,000 for the third contract.

They likewise need to demonstrate that they have adequate equipment and staff.

Interested parties will pay a non-refundable fee of P75,000 for each set of bid documents.

The ADB said the project will also include a traffic management system, which will prioritize bus transport, and social development program for affected people, as well as introduce performance-based contracts with bus operators.

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