RSS

Ayala, Aboitiz disappointed over CALAX rebid

26 Nov

Ayala Corp. (AC) and Aboitiz Equity Ventures, Inc. (AEV) have expressed dismay over the decision of Malacanang to conduct a rebidding of the Cavite-Laguna Expressway (CALAX) project.

The two firms, through its joint venture Team Orion, said that although it is disappointed with the turn of events, it will not oppose the rebidding process. The tandem also said the Office of the President should immediately proceed with the rebid of the PHP 35.4 billion public-private partnership (PPP) project to ensure that the government could gain the PHP 20 billion it is expected to gain.

Team Orion stressed that it continues to support the construction of major road networks to support the country’s economic growth.

The Office of the President issued the decision to rebid the project on November 19, but Ayala Corp. managing director John Eric Francia earlier said the company has yet to receive any formal notice about the decision. He also reiterated the firms’ earlier claim that it will no longer participate in the rebid.

Get FREE stock analysis, special reports and brokers’ recommendations!

“We don’t want to overemphasize this but that is still the position of the company. We believe that the original bid was conducted in a fair and transparent manner. It just doesn’t make sense if we participate in the rebid,” Francia said.

Team Orion submitted the highest bid for the project in June when it offered PHP 11.65 billion, while San Miguel (SMC) was disqualified due to a typographical error in its security guarantee.

San Miguel claimed that its bid was PHP 20.105 billion. It then filed a 37-page Notice of Appeal before the Office of the President on June 27.

Advertisements
 
Leave a comment

Posted by on November 26, 2014 in AC, AEV, Corporate News, Stock Market

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: