Publish Date : 14-Jun-2016
The government is set to bid out today the Phase 2 of the Philippine Statistics Authoritys (PSA) Civil Registry System Information Technology Project (CRS-ITP), a Public-Private Partnership (PPP) designed to upgrade the existing civil registry system with an entirely new system with higher specifications and service level requirements. CRS-ITP Phase 2 is expected to take two years to develop, involving the following components: (i) construction of a new building and (ii) the development of a completely new IT system.
Its precursor, CRS-ITP Phase 1, began in 1999 and is set to expire on March 2017. In anticipation of this date, discussions on the CRS-ITP Phase 2 were initiated in 2012, undergoing a rigorous evaluation process including the requisite NEDA Board approval in July 2015 up until the present day.
The almost 4-year timeline consistent with the BOT Laws prescribed period for the procurement process includes a deadline for the commencement of the bidding process on this day (June 10, 2016) and concessionaire onboarding by September 2016 allowing for a smooth 6-month transition process, in order to prevent major service interruptions in providing civil registry documents such as birth and marriage certificates to the Filipino public. Before March 2017, the winning concessionaire must familiarize itself with the IT system for Phase 1 and subsequently, operate it after taking over in March, during the development stage of the new IT system and construction of the new building for Phase 2.
In keeping with the Philippines internationally-recognized PPP standards[1][2][3], the government ensured all prospective and pre-qualified bidders had a level playing field to compete: engaging independent and internationally reputable transaction advisors to manage the bidding process. The government also provided all relevant information on the current CRS-ITP Phase 1 system for all bidders to understand the current system and the requirements called for by Phase 2. The government likewise provided avenues for bidders to raise concerns or issues during the pre-bid conference, one-on-one meetings, as well as through submissions of queries to the PSA.
The government set pre-qualification criteria to guarantee that Filipino taxpayers would gain the most value for money. A requirement that bidders should have already been involved in at least 2 projects worth P750 million was imposed to ensure that the winning concessionaire would have the necessary ability and capacity proven by experience to manage large-scale and complex projects like the CRS-ITP Phase 2, which has a total project cost of P1.6 billion.
Meanwhile, a cap on the bid price was placed to ensure that the concessionaires share in the revenues would not exceed a certain threshold wherein it would already be better for the government to take on the CRS ITP Phase 2 on its own. This cap on the bid price was disclosed to the bidders in April 2016, almost 2 months before the bid submission date, ensuring that the bidders would be given enough time to analyze the implications of the cap and provide market feedback.
Further, penalty charges were set by the government to avoid implementation delays and to ensure that the winning concessionaire will comply with their obligations under the contract. Designed to be performance-based, as is commonly practiced in PPPs across various jurisdictions, the penalty charges are fair and reasonable and were determined by the PSA based on advice from its experienced transaction advisors, finance experts, and the Department of Finance.
Conducted with the highest standards of integrity and excellence for innovative PPPs, the civil registry system is set to enhance its service delivery capacity for the long term. With its full embrace of innovative technology and project financing, the government looks forward to serving the Filipino public better.
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