DepEd PPP bid for over 9,000 classrooms nears contract award

On July 18, 2012, the Department of Education received bid submissions for its Public Private Partnership for School Infrastructure Project.

Of the six prequalified PSIP bidders, BF Corporation-Riverbanks Development Corporation Consortium, and Citicore Holdings Investment, Inc.-Megawide Construction Corporation Inc. submitted technical and financial proposals for the PSIP.

The first phase of the PSIP comprises 3 Contract Packages-Contract Package A, which corresponds to 2,157 classrooms (with furniture, toilet, and fixtures) for 666 public schools in Region I; Contract Package B, which corresponds to 2,885 classrooms for 592 public schools in Region III; and Contract Package C, which corresponds to 4,259 classrooms for 946 public schools in Region IV-A. In total, 9,301 new classrooms will be built for 2,204 schools in these Luzon regions under the PSIP.

As part of their technical proposal, each of the bidders constructed a two-storey, four-classroom mock up structure in Sta. Isabel Elementary School and in Malolos Marine National High School in Bulacan. A technical team composed of the DepEd, the Department of Public Works and Highways (DPWH), the Department of Labor and Employment's Occupational Health and Safety Center, and the Ernst and Young Consortium (the DepED PSIP's transaction adviser) will evaluate the compliance of the mock up structures against the PSIP's Minimum Performance Specification and Standards starting next week.

The DepED expects to award the PSIP contracts in August 2012 so that construction can commence this year. Upon acceptance of the classrooms, a ten-year lease period will commence where DepEd makes annual payments to the winning bidder. During the lease period, the winning bidder undertakes periodic maintenance activities on the classroom structures every 4.5-5 years, while the DepEd is responsible for day-to-day wear and tear.

"With all systems go under the PSIP scheme, I am confident that we will be able to achieve zero backlog in classrooms by 2013," said Secretary of Education Br. Armin A. Luistro FSC

Indeed, the construction of classrooms and other school infrastructure under this public private partnership scheme will enable DepED to tap private sector technical and financial resources to improve the quality of school facilities and fast-track the wiping out of classroom shortages in public schools. Succeeding phases of the PSIP will be implemented in the Visayas and Mindanao regions. - Official Gazette — ARA