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The Philippine Inter-Island Shipping Association and One Maritime Group urged the government to reject the lowest bid submitted by a Chinese firm for the Bataan-Cavite Interlink Bridge Project, citing serious national security and economic concerns
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PISA and OMG expressed “grave alarm” over the recent announcement that China Harbour Engineering Company submitted the lowest bid at P4.87 billion for the bridge’s Contract Package 1
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The groups flagged CHEC’s parent firm and its subsidiaries, which had been sanctioned by the United States for their documented role in the illegal reclamation and militarization of artificial islands in the West Philippine Sea
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They also cited the Chinese firm’s poor track record on business integrity and lack of support for the Filipino workforce
The Philippine Inter-Island Shipping Association (PISA) and One Maritime Group (OMG) have urged the government to reject the lowest bid submitted by a Chinese firm for the Bataan-Cavite Interlink Bridge (BCIB) Project, citing serious national security and economic concerns.
In an open letter to the Department of Public Works and Highways (DPWH) and Department of National Defense (DND) dated October 15, the two groups expressed their “grave alarm” over DPWH’s recent announcement that China Harbour Engineering Company (CHEC) submitted the lowest bid at P4.87 billion for the bridge’s Contract Package 1 (CP1).
“We write to place the Philippine government on note regarding the unacceptable risks this selection poses to our national security and the future of the local maritime and construction industries,” the groups said.
PISA is the umbrella organization of various sectors in the domestic shipping industry while OMG is a newly-formed group composed of the Marine and Technical Superintendent Association of the Philippines, Inc.; Maritime Journalists Association of the Philippines; Metro Shipbuilders and Ship Repairers Association, Inc.; Philippine Ship Registry Association, Inc.; and Shipyard Association of the Philippines.
CHEC was one of the eight qualified bidders for CP1, which involves the construction of the Bataan Land Approach, covering about 6.89 kilometer of ramps with an approved estimated budget of P7.25 billion.
The other bidders and their corresponding offers were: Beijing Urban Construction Group Co. Ltd. (P5.87 billion); China Wu Yi Co., Ltd. (P5.87 billion); Shou Road and Bridge Group Co. Ltd. (P6.002 billion); joint venture of Human Road & Bridge Construction Group Co. Ltd. and China Civil Engineering Construction Corp. (P6.52 billion); POSCO E&C-Sta. Clara Joint Venture (P7.04 billion); EEI-PMI Joint Venture (P7.19 billion); and D.M. Consunji (P7.82 billion).
PISA and OMG said the government “must immediately recognize the severe national security implications of awarding a contract for a critical infrastructure project to a Chinese state-owned enterprise (SOE) whose parent company is directly linked to activities against the Philippines sovereign interests.”
China Communications Construction Co. (CCCC) is the parent company of CHEC. CCCC and its subsidiaries have been sanctioned by the United States for their documented role in the illegal reclamation and militarization of artificial islands in the West Philippine Sea (WPS), which the groups noted is a direct violation of the country’s sovereignty and international law.
“To grant a multi-billion peso contract to a company implicated in the destruction of Philippine marine ecosystems and the aggressive expansion of a foreign military presence in our Exclusive Economic Zone (EEZ) sends a dangerously conflicting message,” the groups pointed out.
They also noted that the terminal points of the 32-kilometer bridge connecting Naic, Cavite to Mariveles, Bataan are critically close to Philippine defense and security facilities.
Mariveles hosts a Navy anti-submarine facility and a Coast Guard harbor, while Naic is near the Navy’s main base in Sangley Point.
“Awarding the project to an SOE of the People’s Republic of China, whose national laws compel its companies to participate in overseas surveillance and espionage, creates an untenable and unacceptable risk of sabotage and intelligence gathering on vital national assets,” the groups said.
Beyond security concerns, the groups said Chinese SOEs have a documented poor track record regarding business integrity and the lack of support for the Filipino workforce.
They added that CCCC and its affiliates have a public history of bid collusion and fraudulent practices, leading to their blacklisting by the World Bank in previous Philippine road projects.
“Furthermore, a pattern of low-balling bids-often subsidized by the Chinese government-only to deliver substandard projects and poor workmanship elsewhere, threatens the integrity and longevity of the iconic BCIB project,” the groups said.
They also warned the Philippine government that projects secured by Chinese SOEs have historically resulted in minimal trickle-down benefits to the Philippine economy.
They noted that in previous Chinese-built projects, over 80% of materials, labor, and design work came directly from China.
The groups also demand DPWH and the Maritime Industry Authority to ensure that the BCIB project is built with a commitment to national development, which includes the mandatory prioritization of Philippine-flagged vessels and the contracting of Filipino shipowners and operators for the crucial marine logistics component of the project.
“A flagship Philippine project must be an engine for the Filipino domestic shipping industry, not a conduit for foreign companies to circumvent our rules and deprive our local industry of livelihood,” they said.
“The narrow financial incentive of a low bid cannot be allowed to compromise the nation’s security and the long-term viability of our local industries,” they added.
Moreover, they call for the conduct of a comprehensive security review with the DND before proceeding with any bid selection for the BCIB or other critical infrastructure projects near sensitive military areas.
“Our security and our economy are not for sale. The welfare of our nation must always prevail over a subsidized low bid. We await your decisive action on this matter of national significance,” the groups said.
In his state of nation address last July, President Ferdinand Marcos, Jr. said construction of the BCIB will begin before the year ends.
The bridge traversing Manila Bay will reduce travel between Bataan and Cavite from the current five hours to just 45 minutes.
In 2023, the Asian Development Bank approved a $2.1 billion financing for the project. Last year, the Beijing-based Asian Infrastructure Investment Bank as co-financer also greenlit financing of up to P64 billion.
