BF Corporation-Riverbanks Development Corporation and Citicore Investment Holdings, Inc.-Megawide Construction Corporation, Inc. bagged the P16.4-billion build-lease-transfer contract for the PPP for School Infrastructure Project (PSIP) of the Department of Education.
The project involves the design, construction and maintenance of 9,301 public classrooms in Regions I, III and IV-A for 10 years.
According to DepEd's Project Bids and Awards Committee (PBAC), both bidders proposed prices lower than the total approved budget for the project. BF Corporation-Riverbanks Development Corporation had the lowest bid for the 2,157 classrooms in Region I, while Citicore Investment Holdings, Inc.-Megawide Construction Corporation, Inc. proposed the lowest cost for the construction of 2,885 classrooms in Region III and 4,259 in Region IV-A.
The Approved Budget for the Contract (ABC) was based on DepEd's cost for single-storey and two-storey classroom construction valued at P620,812 and P1.06 million, respectively, including toilets and other furnishings.
Under its Multi-Year Obligational Authority (MYOA), the government will pay BF Corporation an annual lease of P344.59 million for the 2,157 classrooms in Region I within 10 years.
Megawide-Citicore Investment Holdings, Inc., on the other hand, will be paid an annual lease of P522.98 million and P760.49 million for the classrooms that they will design and construct for Regions III and IV-A, respectively.
Throughout the lease period, both contractors will undertake periodic repairs on the classrooms every 4.5-5 years.
PBAC chair undersecretary Francisco Valera and DepEd chief Armin Luistro opened and evaluated the financial bids for the three contract packages yesterday.
In a statement, Luistro congratulated the bidders for taking part in the auction.
"We hope that what was once something unimaginable and what everyone and all our detractors say that we cannot close the gap in classrooms--finally we will be able to say, because we worked together, we will do this, not for ourselves, but for the young people, 20 million of them, so that we can provide access to quality education. When we are able to deliver that quality education, then you can count that you are part of that history in changing the landscape and future of our country," said Luistro.
Out of the six prequalified bidders, only BF-Riverbanks and Citicore-Megawide submitted their technical and financial proposals for the project.
DepEd will issue the Notice of Award to both winning bidders within the next four weeks.
Meanwhile, PPP Center Executive Director Cosette V. Canilao said the successful bid for the project sends a positive message to other investors who are hesitant about investing in government projects.
"This time around under the PPP program, we are given a unique opportunity to really make a difference in the lives of our children. Now these young Filipinos will have a stronger chance to secure their future because we took great efforts to give them what they needed now," she said.