BID EVALUATION REPORT AND RECOMMENDATION FOR AWARD OF CONTRACT

NAME OF PROJECT

MINDANAO RURAL DEVELOPMENT PROGRAM -II LN7440-PH $83,752,000 Rehabilitation of Los Arcos to San Lorenzo FMR. 01-PRO-ADS-07 August 28, 2007 LM CONSTRUCTION P 6,367,850.68

IBRD LOAN OR IDA CREDITS NO: CONTRACT NAME IDENTIFICATION NUMBER DATE OF SUBMISSION LOWEST CALCULATED AND RESPONSIVE BIDDER BID PROPOSAL : : : : :

MUNICIPALITY OF PRO PROVINCE OF AGUSAN

BID EVALUATION REPORT NAME OF PROJECT: Rehabilitation of Los Arcos to San Lorenzo FMR SUBPROJECT DESCRIPTION: Rehabilitation of Existing FMR
TABLE 1. IDENTIFICATION 1.1 Name of Borrower 1.2 Loan/Credit Number 1.3 Date of Effectiveness 1.4 Closing Date ( a ) Original ( b ) Revised 1.5 Name of the Project 1.6 Purchaser ( or employer ) ( a ) Name ( b ) Address 1.7 Contract Number Identification 1.8 Contract Description 1.9 Cost estimate 1.10 Method of Procurement 1.11 Prior Review Required 1.12 Domestic Preference Allowed 1.13 Fixed Price Contract 1.14 Co-financing, if any ( a ) Agency ( b ) Percent financed by agency Republic of the Philippines World Bank - $83,752,000/IBRD Loan No. LN7440-PH July 1, 2007 December 31, 2012 None MINDANAO RURAL DEVELOPMENT PROJECT ( MRDP II ) Local Government Unit of Prosperidad, Agusan 01-PRO-ADS-07 Rehabilitation of an existing FMR Php 6,655,958.01 NCB __x__LIB_____ Other Yes___x___ No_____ Yes ______ No___x___ Yes ___x___ No ______ Not Applicable Not applicable

The Municipality of Pro, Agusan has availed the financing facility under the loan no. LN7440-PH Mindanao Rural Development Project (MRDP II) of the Department of Agriculture for the rehabilitation of Los Arcos to San Lorenzo FMR.

II SUBPROJECT BIDDING PROCESS TABLE 2. BIDDING PROCESS 2.1 GENERAL PROCUREMENT NOTICE ( a ) First Issue Date (b ) Latest Update 2.2 PRE-QUALIFICATION IF REQUIRED (a ) Number of firms Pre-qualified ( b ) Date Banks No Objection 2.3 SPECIFIC PROCUREMENT NOTICE (a) Name of National Newspaper (b) Issued Date (c ) Name of International Publication ( d ) Issued Date ( e ) Number of Firms Notified 2.4 STANDARD BIDDING DOCUMENTS ( a ) Title, Publication Date (b ) Date of Bank No Objection ( c ) Date of Issue to the Bidders 2.5 NUMBER OF FIRMS ISSUED DOCUMENTS 2.6 AMENDMENTS TO DOCUMENTS, IF ANY ( a ) List all issue dates (b ) Date(s) of Banks No Objection 2.7 DATE OF PRE-BID CONFERENCE, IF ANY 2.8 DATE OF MINUTES OF PRE-BID CONFERENCE SENT TO BIDDERS AND BANK

July 19,2007 None Not Applicable Not Applicable Malaya July 19, 2007 None Not applicable Not applicable Philippine Bidding Documents, July 19, 2007 May 15, 2007 July 19, 2007 to August 19, 2007 Three(3)

Not applicable Not applicable August 8, 2007 NA

The Invitation to Bid was advertised once on July 19, 2007 in Malaya. Three (3) bidders were issued the bidding documents. A pre-bid conference was held on August 8, 2007 at the Municipal Hall of Pro, Agusan to clarify the requirements and specific provisions in the bidding document. Members of the BAC and representatives of prospective contractors attended the conference. Clarifications were made particularly on the bid security form and other requirements necessary to comprise their bid proposal.

III. BID SUBMISSION AND OPENING TABLE 3. BID SUBMISSION AND OPENING 3.1 SUBMISSION DEADLINE ( a ) Original Date and Time ( b ) Extensions, if any 3.2 BID OPENING DATE, TIME 3.3 RECORD OF BID OPENING, DATE SENT TO BANK 3.4 NUMBER OF BIDS SUBMITTED 3.5 BID VALIDITY a) Originally Specified b) Extensions if any c) Date of Banks No Objection, if required August 20, 2007 at 10:00am. None August 20, 2007 at 10:am Three(3) Ninety (90) days Not Applicable Not Applicable

The bidding for the Rehabilitation of the Los Arcos to San Lorenzo FMR was conducted on August 20, 2007at 10:00 a.m. A total of Three (3) bidders submitted their bids before the closing time. The opening of bids was chaired by the BAC chairman and attended by all BAC members, observers, contractors and representatives and end-users for the project. Each bids for the project was read out. There was no modification. IV. TECHNICAL PROPOSAL Bid Security Technical Modification Validity Or Amount Form (days) Substitution NO NO NO 97.5t 145t 130t BG BG BG 120 120 120 Pass/Fail Criteria ( P/F ) P P P Acceptance for Financial Proposal ( P/F) P P P

Name of Bidder

LG Const. LM Const. ABC

Note: (outright rejection) Documents for outright disqualification a. Evidence of financial , technical and production capability b. Audited Financial Statement c. NFCC or Credit Line Certificate or Cash Deposit Certificate d. Bid Security e. Authority of the Signatory Pass (If all of the above documents are present ) Fail (If any of the above documents are absent)

All bidders have passed the requirements on documents for outright rejection. V FINANCIAL PROPOSAL Acceptance for Preliminary Examination ( Pass/Fail) Passed Passed Passed

Name of Bidders LG Const. LM Const ABC

Bid Price 6,441,280.27 6,367,850.68 7,161,532.80

Pass/Fail Criteria Pass Pass Pass

Note: Documents for Pass/Fail Criteria a. Bid Prices in the Bill of Quantities in the prescribed Bid Form b. Detailed Estimates c. Cash Flow and payments schedule Pass (If all of the above documents are present) Fail (If any of the following documents is absent)

VI ABSTRACT OF BIDS: FINDINGS OF PRELIMINARY EXAMINATION Passed Passed Passed

NAME OF BIDDERS LG Const. LM Const. ABC

BID PRICE (Php) 6,441,280.27 6,367,850.68 7,161,532.80

BID SECURITY 97.5t 145t 130t

VII. DETAILED EVALUATION The Bid Documents submitted by LG Const., LM Const., and ABC after having passed the preliminary examination were subjected for detailed evaluation.

A. CORRECTION OF ERRORS TABLE 7: LOWEST CALCULATED BID Name of Bidder LM Const. LG Const. ABC Bid Price (Php) 6,367,850.68 6,441,280.27 7,161,532.80 Corrected Price 6,367,833.65 6,441,269.82 7,161,532.80 Completeness (P/F) P P P Rankin g 1 2 3 Acceptance for Post Qualification Pass Pass Pass

As a result of the Correction of Errors, the lowest calculated bid is offered by LM Const. B. NFCC/CDC/Credit Line BANK COMMITMENT: In the event that a Bidder, at its own OPTION, does not provide either a credit line or cash deposit certificate in the amount at least equal to ten percent (10%) of the bid, the Bidder must provide a statement of its NFCC. The NFCC is as follows: Formula: NFCC = [(CA-CL) x K] OC k =10 for projects 1 year or less Or: CASH (10% of the Bid) Table. Financial Position Year Credit line/CDC LM Construction 2007 650,000.00 LG Construction 2007 700,000.00 ABC 2006 NFCC Compliance passed passed 15,000,000.00 passed

C.) Have an annual turnover from all works averaged over the last three (3) years equal to one hundred percent (100%) of the bid under consideration for award. Bidder Name of Project Implemented LM Construction of CONSTRUCTION Irrigation Facilities at Bucac ( Bayugan I, Bayugan Agusan del Sur Construction of NRJ Sta Teresita, Fili, Pinagalaan FMR, Bayugan, Agusan del Sur Construction of Lugom Bridge Phase IV Veruela, Client / Agency PIO,NIA, Rosario, Agusan del Sur PEO, Govt Center, ADS Amount of Contract P 4,935,907.42 Year Completed May 26, 2004

P 6,565,489.86

Oct. 18, 2004

DPWH, 2nd Engg P 9,539,568.46 District,

May 22, 2005

Agusan del Sur Construction of NRJ Magsaysay Sitio Sopon Taonaga FMR, Prosperidad, Agusan del Sur Rehabilitation of West Bayugan Maygatasan FMR., Bayugan, Agusan del Sur Rehabilitation of Aguinaldo-Odiong FMR, Esperanza, Agusan del Sur

ADS PEO, Govt. Center Patin-ay, ADS

P 6,289,421.01

May 8, 2006

PEO, Govt. Center Patin-ay, ADS PEO, Govt. Center Patin-ay, ADS Total for the last 3 years Average for the last 3 years

P 3,024,965.47

Nov. 2, 2006

P 4,200,587.50

Nov. 29, 2006

P 34,555,939.72 P 11,518,646.57

Note: The volume of annual turnover of LM Construction has an average of P11,518,646.57 which is 178.83 % of his bid price of P6,441,269.82. Therefore, LG CONSTRUCTION Passed the MRDP criteria on experience. D )EXPERIENCE: To be considered eligible and qualified a bidder must have a successful experience as a prime contractor in the construction of at least one ( 1 ) work of a nature and complexity equivalent to the works in the last five ( 5 ) years ( to comply with this requirement, single works cited should be at least eighty ( 80% ) of value of bid under consideration for award ), such being verifiable from completion certificates, Name of Project Implemented None Const. of NRJ Magsaysay- Sitio Supon Taonaga FMR, Prosperidad, Agusan del Sur Rehabilitation of NRJ Brgy. 1 Bitanagan Road, San Francisco, Agusan del Sur Date Complete d

Bidder ABC

Client / Agency

Amount of Contract

Remarks Failed

LG Const. LM Const.

Provincial Engineering Office, Agusan del Sur Provincial Engineering Office, Agusan del Sur

P6,289,421.01

May 8, 2006 May 7, 2007

97.64 % of Bid Amt. Passed 70 .79 % of Bid Amt.Failed

P 7,538,730.00

The LM CONST., passed in the criteria of experience particularly one (1) project of the same nature and complexity for the last 5-years of at least 80 %. His biggest project in this category is 118 % of his bid amount. VII POST QUALIFICATION Documents submitted by the bidders who passed the preliminary examination are subject to post evaluation like PCAB, DTI ( Legal Docs ) etc EQUIPMENT: LM CONSTRUCTION
Required Equipment 2 units D. T. 1 unit Payloader As Brand ISUZU ISUZU TCM Plate No. GHL - 338 GDK - 317 Validated Chassis No.
CX299-2015784 SS2451-1916012 75B-0105

Motor No.
10PCI-978850 10PB1-302290 PD6-0188455

Proof of Ownership OR / CR OR / CR Deed of Sale

KEY PERSONNEL: LM CONSTRUCTION

LGC KEY PERSONNEL Name VICTORIOSO F. GO ROEL M. DACOSEO JAYFORD T. AGUINALDO CAMILO TIEMPO MANUEL A. AVILA , JR. Position Project Manager Project Engineer Const. Foreman Materials Engineer Materials Engineer Technical Requirements Bio PRC License/ Experienced Data Accreditation Present Present Present Present Present Present Present Present Present Present Current Current N/A Current Current Remarks

Passed Passed Passed Passed Passed

TABLE. POST QUALIFICATION REPORT Bidder Financial Position ( NFCC/CDC/Cred it Line) Passed Annual Turn-over of Works Passed Experience as Prime Contractor Passed Remarks

LM Const

Responsive

RECOMMENDATIONS: As a result of the bids submitted by the Bidders: ABC, LM Const. and LG Construction, and after the preliminary, detailed and post evaluation of bids, LM Construction was found to have offered the lowest calculated and responsive bid for the Rehabilitation of Los Arcos to San Lorenzo FMR. Prepared by: BAC Technical Working Group ROBERTO S. SABUERO TWG MEMBER Noted by : YOLANDO R. ESTILLORE BAC Chairman

EM C. SAGRADO, CPA TWG MEMBER

Proposed Contract Award

1. Lowest evaluated responsive bidder (proposed for contract award) (a) name (b) address 2. If bid submitted by agent, list actual supplier. (a) name (b) address 3. If bid from joint venture, list all partners, nationalities, and estimated shares of contract. LORETO MA . Pili Drive, Butuan City

LM CONSTRUCTION

Pili Drive, Butuan City

4. Principle country (ies) of origin of goods/materials. 5. Estimated date (month, year) of contract signing. 6. Estimated delivery to project site/completion period.

Philippines December 2007 240 Calendar days

7. Bid Price(s) ) ( Red -out) 8. Corrections for Errors 9. Discounts 10. Other Adjustments 11. Proposed Award 12. Disbursement Category.

Currency(ies) PESO

Amount(s) or % 6,367,833.65 ( - ) 10.44 N/A N/A 6,367,833.65

10