Archive for the ‘News’ Category

Gov’t all set for 1st airport PPP project bidding

InterAksyon, 27 November 2013

By Darwin G. Amojelar

 

MANILA – After delays on the part of the government, the battle among conglomerates for the Aquino administration’s first airport project under its Public-Private Partnership (PPP) Program is all set.

In a statement today, the Department of Transportation and Communications (DOTC) said the agency is ready for tomorrow’s bidding for the P17.5-billion Mactan Cebu International Airport.

“We know that the world is watching.  This is the acid test for our PPP program. The higher the turnout, the more credibility it will mean for our projects,” Michael Arthur Sagcal, DOTC spokesperson said.

The seven prequalified bidders are the following:

- MPIC-JGS Airport consortium, led by the companies of Manuel V. Pangilinan and John Gokongwei;

- Premier Airport Group of Henry Sy’s SM group;

- San Miguel-Incheon Airport consortium;

- AAA Airport Partners led by the Ayala and Aboitiz companies;

- Filinvest-CAI Airport consortium;

- First Philippine Airports of the Lopez group; and

- GMR Infrastructure and Megawide consortium.

The roster of foreign airport operators includes ADC & HAS of Houston Airport, Malaysia Airports Berhad, and the operators of Singapore’s Changi Airport, South Korea’s Incheon Airport, France’s Aeroports de Lyon, Switzerland’s Zurich Airport, and India’s Delhi Airports.

Last week, the National Economic and Development Authority (NEDA) Board approved the following modifications to the project to make it more attractive to bidders:

- Lengthening of the concession period from 20 years to 25 years;

- Transfer of the operation and maintenance of the apron(s) from the grantors to the concessionaire, including the right to derive revenue therefrom;

- Allowing flexibility in the implementation of capacity augmentation;

- Sharing of liability for real property tax; and

- Increasing the duration of the period for prohibiting competing airports from 10 years or when the passenger traffic at Mactan airport reaches 15 million passengers per annum, whichever is later, to 25 years.

The project involves the construction of a new world-class international passenger terminal building, with a capacity of about eight million passengers per year; renovation and expansion of the existing terminal; installation of all the required equipment; and the operation of both new and existing facilities.

When this new international terminal building is completed, the existing terminal, which caters to both domestic and international passengers, will then be converted into an exclusively domestic passenger terminal.

InterAksyon.com is the online news portal of TV5, which is chaired by Pangilinan.

 

PH only Asian economy in Standard & Poor’s ‘Rising Stars’ list

ANC, 27 November 2013

 

The Philippines is the only Asian economy to make it in its list of “rising stars” this year, a global debt watcher said.

The Philippines is only one in two countries Standard and Poor’s Ratings Services (S&P) added to its list of rising stars in 2013, just when the New York-based financial services company is giving more downgrades than upgrade debt ratings.

S&P defines “rising stars” as countries whose credit score was upgraded from junk to investment grade. This year’s list includes 31 countries, where the Philippines is the lone Asian nation.

An upgrade in debt ratings means it’s cheaper for rising stars to loan money to boost their economies. It also makes a country more attractive for foreign investors.

Earlier, all three major ratings agencies – S&P, Fitch and Moody’s – upgraded their credit ratings on the Philippines.

 

Mactan-Cebu Airport project to be bid out tomorrow

ANC, 27 November 2013

 

After being postponed twice, the bidding for the Mactan-Cebu Airport will final push through tomorrow.

The multi-billion airport project has previously been hounded by delays as government tried to figure out how to make the project more enticing to investors.

The Department of Transportation and Communication (DOTC) meanwhile remains confident pre-qualified bidders will show up at Thursday’s bidding after it sweetened the P17.5 billion deal.

Prospective investors for the airport include the country’s largest conglomerates that partnered with the operators of Singapore’s Changi Airport, South Korea’s Incheon Airport, Switzerland’s Zurich Airport and France’s Aeroports de Lyon. The list of pre-qualified bidders are as follows:

1. Ayala-Aboitiz consortium
2. Filinvest-CAI Airport
3. Lopez group’s First Phil. Airports
4. GMR Infrastructure/Megawide
5. Pangilinan-Gokongwei Airport consortium
6. Henry Sy’s SM Premier Airport
7. San Miguel-Incheon Airport

The Mactan-Cebu Airport will be the first airport project to be bid out under the Aquino government’s public-private partnership (PPP) program.

Aside from the Mactan-Cebu Airport, a new airport is set to be constructed in Bohol through the PPP program to replace the existing Tagbilaran Airport. The DOTC is looking for a Japanese bidder for the Panglao Airport as the project would be funded through a loan from the Japan International Corporation Agency (JICA).

 

All systems go for Cebu airport bidding

Rappler, 27 November 2013

By Cherrie Regalado

 

MANILA, Philippines – It’s the “acid test” of the government’s Public-Private Partnership (PPP) program.

The P17.5-billion Mactan-Cebu International Airport expansion project will be bid out to investors on Thursday, November 28.

The Department of Transportation and Communications (DOTC) said the success of the auction is crucial in building the credibility of the PPP scheme.

But DOTC Spokesperson Michael Arthur Sagcal is confident. He said the project is expected to attract the most number of bidders for any PPP so far.

“We know that the world is watching. The higher the turnout, the more credibility it will mean for our projects,” he said.

The project is the first airport deal to be bid out under PPP, the centerpiece of the Aquino administration’s development goals. Launched in 2010, the PPP program was developed to create vital infrastructure that will help make the country’s growth sustainable.

Bidding for the airport project was delayed after DOTC revised the terms twice to entice more investors to participate.

The National Economic and Development Authority board approved the project in a meeting last week.

A total of 7 groups, including some of the country’s biggest conglomerates, along with their foreign airport-operator partners, were prequalified to bid for the project last May.

These groups include:

  • AAA Airport Partners, led by the Ayala and Aboitiz companies
  • Filinvest-led CAI Airport consortium
  • First Philippine Airports of the Lopez Group
  • GMR Infrastructure and Megawide consortium
  • MPIC-JGS Airport consortium of the Manny Pangilinan and John Gokongwei groups
  • Henry Sy’s Premier Airport Group
  • San Miguel-Incheon Airport consortium

The project involves the construction of a new international passenger terminal building that can handle eight million passengers per year, double the Cebu airport’s current capacity. Also included is the operation and maintenance of the old and new facilities.

The Cebu airport accommodated 6.7 million passengers in 2012, way above its intended capacity of 4.5 million.

 

DOTC to bid out 1st airport PPP project on Thursday

ABS-CBN News, 27 November 2013

 

MANILA, Philippines – The Department of Transportation and Communications (DOTC) is set to bid out the Mactan-Cebu International Airport (MCIA) expansion project on Thursday, the first airport to be bid out under the Aquino administration’s public-private partnership (PPP) program.

Seven groups led by top Philippine conglomerates partnered with international airport operators already pre-qualified in May.

The pre-qualified bidders are: AAA Airport Partners led by the Ayala and Aboitiz companies; the Filinvest-CAI Airport consortium; the Lopez groups’ First Philippine Airports; the GMR Infrastructure and Megawide consortium; the MPIC-JGS Airport consortium led by the companies of Manuel V. Pangilinan and John Gokongwei; SM’s Premier Airport Group; and the San Miguel-Incheon Airport consortium.

The foreign airport operators include ADC & HAS of Houston Airport, Malaysia Airports Berhad, and those from Singapore’s Changi Airport, South Korea’s Incheon Airport, France’s Aeroports de Lyon, Switzerland’s Zurich Airport, India’s Delhi Airports.

DOTC expects that the airport project will get a high turnout of PPP bidders.

“We know that the world is watching. This is the acid test for our PPP program. The higher the turnout, the more credibility it will mean for our projects,” said DOTC spokesperson Michael Arthur Sagcal.

The National Economic Development Authority (NEDA) Board recently approved key improvements to the project’s terms to make it more attractive to bidders.

The improvements include extending the concession period from 20 years to 25 years, including the operation of the apron or aircraft parking area in the project scope, and imposing a 25-year ban on the operation of competing airports within the province of Cebu apart from the Bantayan and Camotes Islands.

The project aims to modernize the airport with the construction of a world-class passenger terminal building with an 8 million annual passenger design capacity.

It will also renovate the existing terminal, which has been operating at over-capacity with 6.7 million passengers.

 

AQUINO ADMINISTRATION’S FIRST AIRPORT PPP BID OUT TOMORROW

Department of Transportation and Communications, 27 November 2013

 

Manila, Philippines – Bid submissions for the Department of Transportation and Communications’ (DOTC) Mactan-Cebu International Airport (MCIA) Project are all set tomorrow, 28 November 2013, making it the first airport to be bid out under President Benigno S. Aquino III’s Public-Private Partnership (PPP) program.

With the country’s transportation modernization efforts getting a shot in the arm following last week’s go-ahead of 5 crucial transport infrastructure projects by the National Economic Development Authority (NEDA) Board, the MCIA Project is expected to net the highest number of PPP bidders yet, having seven (7) pre-qualified groups led by top Philippine conglomerates partnered with renowned airport operators from around the world.

“We know that the world is watching.  This is the acid test for our PPP program.  The higher the turnout, the more credibility it will mean for our projects,” said DOTC spokesperson Michael Arthur Sagcal.

The 7 bidders pre-qualified last May are: AAA Airport Partners led by the Ayala and Aboitiz companies; the Filinvest-CAI Airport consortium; the Lopez groups’ First Philippine Airports; the GMR Infrastructure and Megawide consortium; the MPIC-JGS Airport consortium led by the companies of Manuel V. Pangilinan and John Gokongwei; SM’s Premier Airport Group; and the San Miguel-Incheon Airport consortium.

The roster of foreign airport operators includes ADC & HAS of Houston Airport, Malaysia Airports Berhad, and those from Singapore’s Changi Airport, South Korea’s Incheon Airport, France’s Aeroports de Lyon, Switzerland’s Zurich Airport, India’s Delhi Airports.

Several key improvements to the project’s terms were approved by the NEDA Board, making it more attractive to bidders and encouraging more competitive proposals.  These include extending the concession period from twenty (20) years to twenty five (25) years, including the operation of the apron or aircraft parking area in the project scope, and imposing a twenty five (25)-year ban on the operation of competing airports within the province of Cebu apart from the Bantayan and Camotes Islands.

The MCIA Project will modernize the country’s second-largest aviation hub with the construction of a new world-class international passenger terminal building (PTB) having an 8-million annual passenger design capacity.  It will also renovate the existing PTB, which has been operating at over-capacity with 6.7 million passengers going through the structure in 2012.

 

Standard Chartered extends financing to BF Group

Philippine Daily Inquirer, 25 November 2013

By Doris C. Dumlao

 

British bank Standard Chartered has agreed to provide financial muscle to engineering and construction firm BF Group of businessman Bayani Fernando, which bagged a P3.44-billion school infrastructure project under the government’s public-private partnership (PPP) framework.

In a statement on Monday, Stanchart said it had signed a financing agreement with BF unit Bright Future Educational Facilities Inc (BFEFI), for its school building project awarded by the government in October 2012 under contract package A of the PPP for School Infrastructure Project Phase 1 (PSIP1).

The project is ongoing and expected to be completed in April 2014.

Stanchart said it had developed an innovative solution for BFEFI by integrating a working capital loan with a finance facility for receivables, thereby allowing BFEFI to “achieve capital optimization and effective risk management.”

It said the solution was the “first of its kind” in the industry.

The structured solution, unlike a typical term loan for long-term construction projects, enabled BFEFI to monetize its receivables by selling its receivables to Standard Chartered, allowing the company to maintain acceptable indebtedness ratios to pursue other investments while funding the existing project.

However, a bank spokesperson said Stanchart isn’t buying all of the P3.44 billion in receivables, just a “substantial” portion of it.

The BF Group won the build-lease-transfer contract for school infrastructure (package A) for Region 1 with an annual lease payment cost to the Department of Education of about P344.6 million a year for 10 years.

The group’s project is thus worth P3.44 billion payable over 10 years, involving the building of 2,157 classrooms.

“We are contractors not developers and we like to keep the age of our receivables to less than 90 days. But in this project, our client will be leasing the school classrooms we construct for 10 years and will pay the lease quarterly. Standard Chartered’s unique solution to purchase our lease receivables each time we complete a sub-project allowed us to keep the aging of our receivables to less than 60 days,” said Tala Fernando, corporate secretary of BFEFI.

“We are really happy to work with the Department of Education and Standard Chartered Bank in helping making a significant impact on improving education infrastructure in this nation building project,” she added.