No bids for $2.7 bln Philippine infrastructure project ahead of May election

Daily ordeal: A major thoroughfare is clogged with traffic as an overhead train passes by in Manila.

MANILA: A major Philippine infrastructure project received no bids by a Monday deadline, underscoring worries about the viability of the project and concern that plans could be changed or even scrapped by a new administration after elections in May.

The $2.7 billion scheme to build an expressway and dike was slated to be the second-largest infrastructure project under President Benigno Aquino's Public-Private Partnership (PPP) programme which aims to upgrade ageing roads, airports and schools.

Isaac David, president at MTD Philippines, part of a consortium that had looked at bidding, said the project was commercially risky because of the May 9 poll, as well as due to legal questions over the government's right to turn a portion of a lake into land which would be then sold by the private sector.

MTD Philippines was part of the Alloy Pavi Hanshin LLEDP consortium, which also included South Korea's Hanshin Construction Co Ltd and the family of former Philippine Senator Manuel Villar Jr.

Others that had also considered bids included a unit of San Miguel Corp as well as another group composed of Ayala Land Inc, SM Prime Holdings Inc, Aboitiz Equity Ventures Inc and Megaworld Corp.

Public Works and Highways Secretary Rogelio Singson told reporters that his department had no immediate plans to relaunch bidding.

Aquino's six-year term will end in June. Four presidential candidates to succeed him are in a tight race ahead of the poll.

The government has awarded 12 projects worth $4.3 billion under the PPP scheme since 2010. It has outlined plans for 14 additional projects worth $12 billion. - Reuters