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Bases Support and Logistics System Phase 1 Project of the Philippine Navy


The Bases Support and Logistics System Phase 1 Project of the Philippine Navy is a Horizon 1 phase priority project under the Revised AFP Modernization Program. The project involves construction work on Naval Base Rafael Ramos in Brgy. Looc, Lapu-Lapu City, Cebu province, which is to become part of the masterplan to develop the facility into the future Naval Base Cebu.

Phase 1 has an Approved Budget of Contract (ABC) of Php1 billion, and was planned as early as 2014. It was to be implemented via Public Bidding.


Above is the masterplan for the development of Naval Base Rafael Ramos, although the current Bases Support and Logistics System Phase 1 Project aims only to build the Phase 1 development of the masterplan, and not the entirety as shown on the above photo. Photo shared exclusively to MaxDefense.

Overview:
The Bases Support and Logistics System Phase 1 Project aims to start the improvement works of Naval Base Rafael Ramos in Cebu, in line with the Naval Base Cebu masterplan which will make the naval base a modern facility to support naval operations in Central Philippines.

Phase 1 involves improvement works on the current facility, which is the northern side of the masterplan.

The following works are expected to be done as part of this project:


   - Lot 1: Dredging Works
   - Lot 2: Reclamation Works
   - Lot 3: Slope Protection / Sheet Piling
   - Lot 4: Wharf Construction
   - Lot 5: Beaching Ramp Construction
   - Lot 6: Berthing Area Construction (Phase 1)
   - Lot 7: Rip-rapping Works
   - Lot 8: Road Networks
   - Lot 9: Water Supply System
   - Lot 10: Electrical Distribution System

Dredging works allows the future location of piers to become deeper to allow large ships to dock. The soil material from the dredged area can also be used to fill in other areas of the base that area designed to be reclaimed.

Further reclamation will be made to increase the land area while also shaping the location where future facilities will be placed.

Phase 1 covers the existing naval facility which is at the northern part of the masterplan. Photo taken from bid documents from DND.

The feasibility study for the naval base, which appears to still be relevant despite the changes made, can be seen in the video below as shared on Youtube.



Due to different reasons including coordination with local and national government agencies, private companies, as well as planning issues, the project was stalled for several years until the tender was released in 2018.

The tender suffered more delays due to permit issues, which were settled only by 3rd quarter of 2019.
Project Summary:

Bases Support and Logistics System Phase 1 Project:

Note: Edited as of 25 January 2020.

* End User: Philippine Navy (Naval Forces Central)

* Quantity: not quantifiable, divided into several lots

* Modernization Phase: Horizon 1 Phase Priority Projects of RAFPMP

* Project ABC: Php1,000,000,000.00

* Acquisition Mode: Public Bidding

* Source of Funding: GAA 2018 Funds through AFP Modernization Program Trust Fund

* SARO Release: TBA

* Winning Proponent/s:
WTG Construction and Development Corp. - A.M. Oreta & Company Inc. Joint Venture
  
* Product for Delivery: Development of Naval Base Rafael Ramos, Cebu:
   - Lot 1: Dredging Works
   - Lot 2: Reclamation Works
   - Lot 3: Slope Protection / Sheet Piling
   - Lot 4: Wharf Construction

   - Lot 5: Beaching Ramp Construction
   - Lot 6: Berthing Area Construction (Phase 1)
   - Lot 7: Rip-rapping Works

   - Lot 8: Road Networks
   - Lot 9: Water Supply System
   - Lot 10: Electrical Distribution System

* Contract Price: Php838,698,976.57

* Difference Between Contract Price and ABC: Php161,301,023.43

* Expected Completion: 480 calendar days from Notice to Proceed, around July 2021.
   
      
* First post by MaxDefense: 10 July 2018

* MaxDefense Searching Hashtag: #PNBSLSPhase1Project

* Status: Notice of Award released in favor of WTG Construction and Develpment Corp. - A.M. Oreta & Company Inc. Joint Venture. Contract signing and release of Notice to Proceed expected to happen by January - February 2020.

CGI of the proposed beaching ramp. Photo taken from bid documents posted by DND.

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U P D A T E S:
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10 July 2018:

The development of Naval Operating Base Cebu has been running since 2001, and the latest planning exercise which restarted in 2014 was just a revalidation of a plan made by CEDECO and F. I. Hong & Associates in 2004.

Due to the costs involved, it was proposed that the PN's property be used for dual-use development, with 1 portion to be used as the actual naval base, while another portion will be used as a residential-commercial development in partnership with a private consortium that could generate income for the PN while also do the naval base development without the PN putting out a huge sum for the totality of the development. The photos below show the plan in the previous administration. This is based on the 2014-2015 version which was approved by then former PN FOIC Vice Adm. Jesus Millan.

It is still unknown if the current administration is still interested to pursue the original PPP development plan considering the current admin appears to be receptive to PPP and instead prefer loans to be made, or leasing/joint development to be undertaken by BCDA.

Due to the delays in the implementation, the PN might be forced to do the phased upgrade of Naval Base Rafael Ramos in Brgy. Looc, Lapu-Lapu City, which could then be integrated to the overall masterplan of the base. The plan could still be changed to address other requirements of the Philippine Navy, including the construction of submarine basing facilities which were not part of this 2014-2015 version of the Naval Operating Base Cebu masterplan.

MaxDefense will be discussing more on this development in the near future.

The development of Naval Base Rafael Ramos involves 2 parts, the Philippine Navy Area and the Public-Private Partnership (PPP) Area. The current Bases Support and Logistics System Phase 1 Project only involves certain portions of the Philippine Navy area. Photos exclusively shared to MaxDefense.
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13 July 2018:

The bidding process has finally started for the construction works at Naval Base Rafael Ramos in Lapu-Lapu City, Cebu under the Philippine Navy's Base Support and Logistics System (Phase 1) project with a total Approved Budget for Contract worth Php1 billion, divided into 10 line items covering different scope of construction work.

The 10 line items are the following:
1. Dredging Works
2. Reclamation Works
3. Slope Protection / Sheet Piling
4. Wharf Construction
5. Beaching Ramp Construction
6. Berthing Area (Phase 1)
7. Riprapping
8. Road Networks
9. Water Supply System
10. Electrical Distribution System

The Submission and Opening of Bid Envelopes (SOBE) is scheduled on 20 July 2018. So far there are 3 interested bidders based on the Supplemental Bid Bulletins: Luzviminda Engineers Constructors Consultants, Marra Builders Inc., and China Wuyi Co. Ltd.

The winning contractor shall deliver the project within 480 days from receiving the Notice to Proceed.

Originally this project should have been part of a PPP program that is currently being evaluated for approval by the National Economic Development Authority (NEDA), but due to the urgency of having a base for existing and future large ships of the Philippine Navy, the Philippine government decided to push through with at least the Phase 1. The rest of the base development as shown on the masterplan will be done later on, depending on the development of the proposal with NEDA.

===============


05 October 2018:
Based on latest Supplemental Bid Bulletin, the SOBE schedule was moved from 10 October 2018 to 24 October 2018. No reason was provided by the DND


===============

19 October 2018:
The SOBE schedule was moved again from 24 October 2018 to 07 November 2018. No reason was provided by the DND in their latest Supplemental Bid Bulletin dated 17 October 2018.

===============


28 October 2018:
The SOBE was moved again from 07 November 2018 to 19 November 2018 based on a SBB released by the DND on 26 October 2018.


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04 July 2019:
After several Supplemental Bid Bulletins from late 2018 to mid-2019, it now appears that the tender was postponed several times due to delays in the release of the Environmental Compliance Certificate (ECC) and a permit from the Philippine Reclamation Authority (PRA).

Up to now, there is no definite date on when the tender will proceed again.

===============


19 November 2019:
A Supplemental Bid Bulletin dated 15 November 2019 was released, discussing the queries of proponents and the replies from the DND. 


Among those that made the queries were F.F. Cruz & Co. Inc., R-II Builders Inc.. Sargasso Construction Development Corp., Fabmik Construction & Equipment Co. Inc., Luzviminda Engineers and Architects, D.M. Wenceslao & Associates Inc., A.M. Oreta & Co. Inc., Kyro Builders Inc. / China Harbor Engineering Company Construction Philippines Corp. JV, BSP & Co. Inc., MAC Builders, and ITP Construction Inc. / China Railway 22nd Bureau Group Co. Ltd., JV,

Take note that submitting a query does not necessarily mean they will submit a bid. If they find that the tender does not fit them well, they will simply just become spectators.


Also confirmed in the SBB was the new SOBE deadline now set on 22 November 2019. 


29 November 2019:
MaxDefense received confirmation that there were at least 5 bidders for the project that submitted a bid.

Among them are  Luzviminda Engineering - Unimasters Conglomeration Joint Venture, MAC Builders, FF Cruz & Co., WTG Construction & Development - AM Oreta & Co Inc. Joint Venture, and Millenium Erectors Corp. - Stone of Hope Builders & Development Corp. Joint Venture.

WTG Construction & Development - A.M. Oreta & Co. Inc. was said to have been declared the lowest bidder, while only MAC Builders was qualified out of the other bidders. The rest were considered disqualified for several reasons, and MAC Builders was declared 2nd lowest bidder.


It remains to be seen if WTG-AM Oreta JV will pass the Post Qualification Inspections which are said to be conducted on December 2019.

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25 January 2020:
The DND has released a Notice of Award (NOA) in favor of  Cebu City-based WTG Construction and Development Corp. - A.M. Oreta & Company Inc. Joint Venture, being the lowest calculated and responsive bidder. The NOA was released on 27 December 2019.

Despite the project having multiple line items/lots, the project will be awarded only to a single company for practicality and easy coordination and management.

The contract price submitted by the Joint Venture was Php838,698,976.57, which is more than Php150 million lower than the budgeted amount for the project.

Contract signing is still unconfirmed although it is expected to happen soon, or could have already happened.


The Notice of Award released by the DND on 27 December 2019. Photo taken from DND's website.
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First edit and release: 25 January 2020
Copyright MaxDefense Philippines / Philippine Defense Resource







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