PPP: Megawide seeks partners for prison project under PPP

Megawide Construction Corp. is in talks with potential partners as it seeks to bid for the P50.18-billion prison to be built at the Fort Magsaysay military reservation in Nueva Ecija.

In a statement, Megawide Chief Executive Officer Michael C. Cosiquien said: “We are in talks with two companies, local and foreign; we’re finalizing it.”

Other groups that also expressed interest in the project are San Miguel Holdings Corp. and DM Consunji, Inc. (DMCI).

The project, called Regional Prison Facilities, involves the construction of a new prison facility that will provide adequate living space and facilities, and will address the basic needs of inmates incarcerated in existing penal facilities such as the New Bilibid Prison and the Correctional Institution for Women.

The build-and-maintain concession has a duration of 23 years.

According to Megawide’s Corporate Information Officer Manuel Louie B. Ferrer, some of their potential partners have IT and construction expertise. 

“Once the government releases the terms of the project and we finish reviewing them, we will know and decide on the revenue mix. But for now, we don’t know yet,” he said.

The bidding process for the project began in February, after a notice published by the Department of Justice’s Bureau of Corrections inviting companies to prequalify and bid for the project. 

For this project, the government has set a two-stage bidding process. This means that qualification documents are submitted separately from the financial and technical proposals.

Interested groups have until May 5 to buy bid documents. The deadline of submission for prequalification documents is on May 6.

About 21,2016 convicts at the New Bilibid Prison in Muntinlupa City and 2,016 inmates at the Correctional Institution for Women in Mandaluyong City will be transferred to the Nueva Ecija facility once construction is completed in 2019.

Asked how Megawide will realize returns on its investment should it win the project, Mr. Ferrer said: “It’s similar to the DepEd project. It’s also build-lease-transfer. We build it, and then it will be released and transferred to the government. But it’s hard to talk about it now because the ITPB (instructions to prospective bidders) isn’t released yet.”

The target date for the issuance of an award notice is September 3, while the target date to execute a signed contract with the winning bidder is September 30. The issuance of Notice to Proceed will happen in March 2016.

The winning concessionaire will be responsible for the financing, detailed design and construction, and maintenance of the prison facility for 23 years, inclusive of a three-year construction period.