AlloyMTD to award 3 to 4 major contracts for New Clark City dev’t

Published March 22, 2018, 12:00 AM

by manilabulletin_admin

By Bernie Cahiles-Magkilat

Kuala Lumpur – Malaysian infrastructure firm AlloyMTD, proponent of the Phase 1 of the 220-hectare National Government Administrative Center (NGAC) in New Clark City, is set to award next week 3 to 4 major contracts to all-Filipino contractors for various building components in the NGAC.

Tee Kim Siew, acting CEO of AlloyMTD, said they need to accelerate works on the Phase 1A as it is important that they deliver the key sports facilities for the country’s hosting of the 30th SeaGames in December, 2019.

MTD Philippines, Inc., the local unit of AlloyMTD Group led by Patrick Nicholas David, has one year and nine months only to finish the sports facilities, which will include two sports stadiums (athletics and aquatics),  athletes accommodation facilities and government office building.

“We have to award the contract because time is of the essence,” said Tee in an interview with Filipino media here noting these are tier-1 all-Filipino contractors.

Tee admitted they have a “very tight schedule,” but “it is doable.”

He refused to divulge the contract price for these projects as final negotiations are still coming through.

For its EPC contract with BCDA, Tee said, they don’t have the details yet,  “but we have to clear that because time is of the essence,  we have to say BCDA is quite tough negotiators but fair.”

The Malaysian firm won the bid to construct the Phase 1 of the NGAC, which broke ground last January.

The NGAC involves the development of back-up offices of various government agencies to ensure continuous business operations in case of calamities and disasters. Phase 1A is largely the development of the sports facilities, which components include two world standards stadium for athletics and aquatics competition, two apartments for athletes, two government towers and

Phase 1 is a total of 60-hectare development of which Phase 1A is comprised of 40 hectares mostly the sports facilities. Phase 1B is composed of 20 hectares and development of government offices is expected to be fully completed by December 22 or before President Duterte’s term ends, but AlloyMTD intends to complete it a year early.

According to Tee, they are now focusing their resources in Clark because they have to deliver the Phase 1A, which has estimated investments of P13.7 billion, or else the Philippines cannot host the 3Oth SeaGames in December 2019.

“We have started the upclearing, set up base camps, because of so many components we  anticipate thousands of workforce so clearing the earth. Things will pick up as we go along,” he said.

As an EPC contractor, AlloyMTD will be paid by BCDA on what they would deliver.

Payment for the sports facilities will start after its delivery in 2019 although they have an agreed staggered payment term over a five-year period.

“When we deliver the sports complex end of 2019 the government will start paying on a deferred payment contract terms – it takes not just to get development, construction cost, but funding cost because a project of this size get funding,” he said. The payment terms for the government offices though are still being negotiated for a longer lease or lease or lease to buy or buy.

“The most important is to deliver the sports complex so that is the biggest challenge and biggest milestone,”he stressed.

The MTD Group has presence in 15 countries, but the New Clark City project is where it is focusing its attention and resources. It is almost simultaneously being undertaken with its £500 million mixed-use “One Crown Place” in London.

This makes the Philippines its second biggest investment, so far.

 
CLICK HERE TO SIGN-UP
 

YOU MAY ALSO LIKE

["news"]
[2369421,2814292,2534630,2485825,2408462,2358243,2358052,2344118,2339143,2047660,1998697,996820,995332,995948,995006,994327,994303,993947,993860,993770,993529,993383,993285,798318,2818841,2818854,2818847,2818851,2818843,2818829]