P25.7-billion performance bond not yet paid by Mislatel
MANILA, Philippines – Mislatel, the consortium named as the country’s new major telecommunications player, has not yet paid the P25.7-billion performance bond to the government.
The performance bond was supposed to be paid on or before February 17, the end of the 90-day post qualification period, based on the terms of reference (TOR) in the selection process for the 3rd telco player.
The TOR stated the performance bond shall be paid prior to the issuance of the certificate of public convenience and necessity (CPCN).
Several sources told Rappler that the non-payment could mean a failed bidding.
The performance bond is 10% of the capital and operational expenditures of the winning bidder. Mislatel committed to spend P257 billion in 5 years for the endeavor.
However, Information and Communications Technology Secretary Eliseo Rio Jr told Rappler on Friday, February 22, that the bond has not yet been collected due to the franchise issues of Mislatel. (IN CHARTS: Mislatel's rollout plan)
“We could not grant the frequencies and CPCN to Mislatel until they get the formal approval of Congress to the transfer of the Mislatel franchise to the consortium,” Rio said.
Rio said Mislatel may pay the performance bond only upon the approval of Congress.
“The performance bond will only [be paid] upon the approval, because it will not be needed if disapproved,” he added.
Consortium members composed of Dennis Uy's Udenna Corporation, its subsidiary Chelsea Logistics, and state-owned China Telecommunications agreed to increase its shares in Mislatel to acquire controlling interest in the company.
Several legislators opposed this, as they believed that the companies should have sought approval of Congress before doing so.
However, the Senate already concurred to the House resolution regarding the matter.
Rio insisted both chambers of Congress needed to convene in a bicameral conference for the issue.
Senator Grace Poe, chair of the public services committee, said there was no need for a bicam on the Mislatel resolution.
Rappler sought the comment of Mislatel regarding the performance bond, but has yet to reply as of posting time. – Rappler.com