Participating bidders for the new communications and surveillance system project are urging the Department of Transportation and Communications (DoTC) to ensure that there is a level-playing field, and not one particular bidder is unduly benefited through questionable pre-qualification stage in the bidding process.

A source, who requested anonymity, claimed that a Japanese government agency is unduly influencing the pre-qualification of bidders for the New Communications, Navigation and Surveillance/ Air Traffic Management Systems Development of DoTC to favor Sumitomo Corp.-Thales Australia Ltd.

“While we understand that the funding for this project is a loan from Japan International Cooperation Agency, it is, however, an untied loan, so JICA cannot dictate that the supplier should come from Japan or a favored one. By pre-qualifying Sumitomo-Thales in the first phase of the project and disqualifying other capable bidders, we can say that the entire project will in the end go to their favored supplier, Sumitomo-Thales,” our source said.

The project, which consists of two package (roughly $70 million and $120 million for Package 1 and 2, respectively), has resulted in the pre-qualification of only two bidders Sojitz Corp. and the joint venture of Sumitomo Corp. and Thales Australia Ltd. Sources perceive that whoever gets package 1 will have an undue advantage to get package 2 since the bulk of the expensive softwares it will deliver for package 1 will be integrated with package 2, hence, it can afford a much lower bid for package 2.

“We are thus pushing for the DoTC to conduct a wider investigation on the irregularities of the pre-qualification bidding process and to ensure that a fair and honest procedure will take place,” the source added.

The source pointed out that since the funding for the project is a loan and not a grant from JICA, the money that will be used to finance the loan will still come from the pockets of the Filipino taxpayers and, therefore, the government, through DoTC, should have the final say on this project and should not be influenced or dictated upon by JICA.