DMCI Holdings, Inc. has engaged CFP as the lead transaction advisor to help the company participate in the competitive public tender of the Regional Prison Facilities through PPP Project. The Department of Justice (DOJ) and the Bureau of Corrections (BuCor) are jointly developing the Project to address the worsening congestion at the New Bilibid Prison in Muntinlupa and the Correctional Institution for Women in Mandaluyong, which the government plans to close down. The new prison facility will be constructed at a portion of the Fort Magsaysay military reservation within General Tinio town in southeastern Nueva Ecija. The estimated USD1.0 Billion project will feature advanced high security equipment and will accommodate 26,880 inmates, including staff housing and administrative buildings, areas for rehabilitation through sports, work and religious activity. The private partner will be responsible for the financing, detailed design and construction, and maintenance of the prison facility under a Build-Transfer-and-Maintain (BTM) contract. Remuneration will be through construction milestone and performance-based availability payments to be made by the DOJ for a period of 20 years after the prison facility is constructed. The BTM contract will be awarded to the most responsive bidder based on the lowest present value of the proposed availability payments for the Project.
CFP will initially help in reviewing the prequalification rules and requirements and coordinating the preparation of the qualification forms and supporting documents for submission to DOJ. After DMCI qualifies, CFP will continue providing legal, financial and technical bid support in reviewing the tender process, deal structure and BTM contract terms to protect DMCI’s investment interests. If DMCI decides to bid after reviewing the risk-return profile, CFP will help in preparing the technical and financial proposals for submission to DOJ and BuCor.