12 December 2013, Rappler.com
by Cherrie Regalado
GMR Infrastructure and Megawide consortium submitted the highest bid for the Cebu Mactan International Airport deal.
The consortium offered a P14.4-billion premium bid for the Cebu Mactan International airport expansion project.
AllÂ other biddersÂ submitted premium bids as well. â€śA premium bid is when companies pay the government to construct or undertake the project,” Department of Transportation and Communications spokesperson and lawyer Michael Arthur Sagcal said during the opening of the financial bids on Thursday, December 12.
7 firms submitted the following financial bids:
The MCIA is the first airport deal under the Private Public Partnership (PPP) scheme of the Aquino administration.
The project will modernize the countryâ€™s 2nd largest airport, and involves the construction of a new international passenger terminal building with an annual capacity of 8 million passengers.
The existing passenger terminal will be expanded to accommodate more passengers as well.
The project will cost P17.5 billion which will be shouldered entirely by the winning bidder.
The entire amount of the financial bid will be given to the government as payment to construct the airport, DOTC Undersecretary Jose Perpertuo Lotilla said.
The Transportation Departmentâ€™s Special Bids and Awards Committee has 15 days to evaluate the financial proposals.
Awarding of the project is scheduled on January 6, while the signing of the concession agreement will be on February 6.
The winning bidder will have to give the check for the financial bid during the signing of the agreement since â€śitâ€™s a condition to signing the contract, â€ś Lotilla said.
The Cebu airport project is one of the big-ticket items under the PPP program. The program was launched in 2010 to create infrastructure needed to sustain the country’s robust economic growth.
The airport project was one of the 7 PPPs approved by National Economic and Development Authority boardÂ on November 21. â€“Â Rappler.com
12 December 2013, GMA News
Megawide Construction Corp. and partner GMR of Bangalore, India bested investors led by SM Group, Ayala Corp., San Miguel Corp., JG Summit Holdings Inc., and Metro Pacific Investments Corp. by bidding P14.404 billion to take on the Mactan-Cebu International Airport expansion project.
The consortium GMR Infrastructure of India-Megawide made the highest bid for the project, said Jose Perpetuo Lotilla, undersecretary of the Department of Transportation and Communications (DOTC).
The DOTC Bids and Awards Committee (BAC) will now hunker down to review the financial bids over the next two weeks and issue a notice of award on Jan. 6, 2013, Lotilla told reporters, saying the contract with the winning group will be signed on Feb. 6.
In a separate interview with reporters, PPP Center executive director Cosette Canilao said the bids were beyond government expectations and noted that the Aquino administration was prepared to subsidize the project.
â€śThose are really good bids, all premium bids and exceeded our expectations. The government was prepared to give a subsidy. We got all the good operators from all over the world to participate. It’s good for the government,â€ť Canilao added.
For Megawide chief financial officer Oliver Tan, it was a David and Goliath story, saying they slew the â€śGoliathsâ€ť by outbidding conglomerates that include SM Group, Ayala Corp.,Â San Miguel Corp., and Metro Pacific Investments Corp.
“We really prepared for this…â€ť Megawide chief marketing officer Louie Ferrer told GMA News Online. â€śIt took us months to prepare, and we found a good partner in GMR,” Ferrer said, noting the Bangalore-based operator has three ongoing airport projects in India and Turkey.
According to DOTC, MPIC-JGS Airport consortium made an P11.23-billion bid for the project, AAA Airport Partners bid P11.088 billion, San Miguel Corp.-Incheon Airport wanted the deal for P9.05 billion, while First Philippine Airports tried to bag the airport project for P4.7 billion.
The winner is expected to build a world-class international passenger terminal building â€“ capable of processing eight million passengers a year â€“ for the second-largest Philippine airport after the Ninoy Aquino International Airport.
Ferrer told reporters Megawide already won several public-private partnership (PPP) projects to construct classrooms under the Department of Education’s School Infrastructure Project. â€“ Danessa Rivera/VS/JDS, GMA News
12 December 2013, Business World