SBMA opens bid to challenge Cerberus

THE Subic Bay Metropolitan Authority (SBMA) has opened comparative bidding to challenge the unsolicited proposal of US-based Cerberus Asia Pacific Investments, LLC. to manage, operate, and upgrade the Subic Bay International Airport (SBIA), the Public-Private Partnership (PPP) Center said.

“The Subic Bay Metropolitan Authority invites interested challengers to apply for eligibility and submit their comparative proposals for the SBIA project,” PPP Center said on Tuesday.

The comparative or Swiss challenge period will run for 90 days from the issuance of the comparative challenge documents, PPP Center said.

Interested challengers may secure tender documents and instructions starting May 18, the SBMA said, adding that bidders must pay a participation fee of P1.4 million or $23,333.

A Swiss challenge, also known as a comparative challenge, is a procurement process where a public authority invites third parties to submit competing bids against an unsolicited proposal for a public project.

The original proponent is then given the opportunity to match or improve upon the best competing offer, ensuring transparency and competitiveness in public procurement.

SBMA said challengers will have until Aug. 17 to complete their comparative proposals.

According to the PPP Center, the unsolicited proposal of Cerberus, now estimated to cost P7 billion, from previously reported P5.31 billion, is under an operate-add-transfer contract arrangement.

Cerberus’ proposal covers the rehabilitation of SBIA assets and the development of new facilities to expand capacity and attract new tenants.

The company has also committed to investing “considerable financial resources” and utilizing its real estate management capabilities in developing the airport.

In its proposal, the company said it will maintain the existing leases but only for the “early years” of its concession period.

The company added that it will monitor and evaluate airport fees to optimize SBMA’s returns under the revenue-sharing agreement, while supporting efforts to attract and manage both existing and new airport tenants.

This revenue-sharing scheme would be the determining factor if the proposed 25-year concession agreement were extended, PPP Center said.

Cerberus Capital Management, headquartered in the US, is an investment firm managing approximately $65 billion in assets. Its global network of affiliates includes Cerberus Asia Pacific, which focuses on investments in logistics, infrastructure, technology, and energy.

Cerberus already operates part of a 310-hectare lot of a former South Korean-owned shipyard west of the airport for which it had submitted an unsolicited bid. — Ashley Erika O. Jose