San Miguel Holdings Corp. (SMHC), a wholly-owned subsidiary of conglomerate San Miguel Corp. (SMC), will undertake the construction of a bridge that would link mainland Malay to the world-famous Boracay Island in Aklan.
SMC’s infrastructure arm was awarded the P7.78-billion Boracay Bridge Project by the Department of Public Works and Highways (DPWH) following the approval of a resolution recommending the award of the contract.
The resolution was approved by DPWH’s public-private partnership (PPP) prequalification, bids, and awards committee (PBAC) on March 25 this year.
Under the contract, the Ramon Ang-led SMHC will finance, construct, design, operate, and maintain the bridge, which amounts to P7.78 billion, inclusive of financing costs.
The 2.54-kilometer (km) bridge project includes “access for public transport, pedestrian lanes, bikeways, and provisions for utilities such as power, telecommunications, water supply, and sewerage.”
According to the DPWH, SMHC is the original proponent of the projects. The firm’s proposal was subjected to a “Swiss Challenge,” but there were no competing bids submitted.
A “Swiss challenge” is “a bidding process that allows third parties to make better offers (challenges) for a project during a designated period with a simple objective to discourage frivolous project, or to avoid exaggerated development costs.”
SMHC is given 20 days from receipt to comply with post-award conditions, including the submission of a signed notice of award, posting of performance security ranging from 2 percent to 10 percent of the total project cost, depending on the instrument used, and proof of the establishment of a special purpose company (SPC).
The Boracay bridge, which will be managed under a 35-year concession agreement, aims to “open up new all-weather access for vehicles and pedestrians, manage the environmental carrying capacity of the island, and alleviate overcrowding and overuse of existing facilities.”
In November last year, the Sangguniang Panlalawigan of Aklan passed a resolution opposing the joint project of the DPWH and San Miguel Holdings Corporation, citing the absence of public consultation and approval from residents.
The resolution warned that the bridge could displace hundreds of boatmen, port workers, and transport cooperative members who depend on the existing Caticlan–Boracay route.IMT
