16 May 2013, Business Mirror
Filinvest Development Corp. has teamed up with Singaporeâ€™s Changi Airport Group to join six other bidders for the P17.5-billion Mactan-Cebu International Airport (MCIA) to turn it into a world-class aviation gateway.
The Changi Airport Group operates the Singapore airport, considered the worldâ€™s best.
The MCIA project is under the governmentâ€™s Public-Private Partnership Program. The project aims to convert the countryâ€™s second major airport into an ultra-modern passenger terminal that could accommodate up to 8 million travelers a year. The Department of Transportation and Communications is scheduled to announce this month the list of qualified bidders.
Changi was recently named the Worldâ€™s Best Airport, Best Airport in Asia, and the Best Airport for Leisure Amenities at the 2013 Skytrax World Airport Awards held in Geneva, Switzerland.Â Â The award was based on the results of a satisfaction survey with more than 12 million airport customers in 160 countries as respondents. Skytrax, the worldâ€™s top airport award-giving body, also bestowed the best airport award on Changi Airport in 2012, 2011 and 2010.
Lee Seow Hiang, chief executive officer of the Changi Airport Group, attributed the latest recognition to the efficiency and security that passengers experience in Changi Airport. Changi bested 395 airports worldwide as passengers expressed satisfaction with its check-in, arrivals, transfers, shopping, security, immigration and departure services. The airport has won more than 390 awards since 1981, including 23 â€śBestâ€ť awards in 2011.
Filinvest is a leading property developer with almost 50 years of experience in providing well-crafted homes, medium-rise and high-rise building projects, inspiring townships and vibrant cities. With its motto, â€śWe Build the Filipino Dream,â€ť Filinvest has provided homes for more than 140,000 families through more than 100 projects nationwide.Â Â Among its major current projects is the one that the company and the Cebu CityÂ government are developingâ€”the 50.5-hectare Citta De Mare residential and leisure project in the South Road Properties.Â Â In Manila, the companyâ€™s prime developments include Filinvest City, a modern metropolis that sprawls over an expansive 244 hectares of prime property in Alabang, Muntinlupa; and Timberland Heights, a 677-hectare ecologically sustainable development in Rizal that boasts of themed communities and an exclusive country club.
The Filinvest-Changi Airport consortium includes the Gotianunâ€™s Filinvest Development Corp., Changi Airports Mena Pte. Ltd., Filinvest Land Inc., Filinvest Alabang Inc., Cyberzone Properties Inc. and Changi Airports Saudi Ltd.
16 May 2013, Rappler.com
The government is considering increasing its domestic borrowings to create a P30-billion contingent liability fund for the Public-Private Partnership (PPP) program.
National Treasurer Rosalia de Leon said the fund would be used for emergency cases such as when the government needs to pay debt as a result of problematic contracts.
“It may come from additional revenues or additional borrowings,” she told reporters on Thursday, May 16.
The government has been trying to reduce its overall debt burden, including its guaranteed debt. Guaranteed debt refers to debt incurred by state agencies and corporations but are guaranteed by the national government.
As of end-February, the government had total guaranteed debt of P484 billion, lower than the P555 billion incurred in the same period last year.
The PPP is the flagship infrastructure program of the Aquino administration. -Â with reports from Cai Ordinario/Rappler.com
16 May 2013, Airport World Magazine
by Steven Thompson
The Philippines government has approved all seven groups that submitted bids for the new $430 million passenger terminal project at Mactan Cebu International Airport.
Financial bids will be opened on August 17 and the winner will be notified a month later.
Bidders included the GMR Infrastructure and Megawide Consortium; AAA Airport Partners; the Filinvest Land Inc. and CAI Consortium; and the Metro Pacific Investments JG Summit Airport Consortium.
San Miguel Corp, which was recently named as the preferred bidder for a $377 million Manila Airport expressway, also participated in the first round of bids, with Incheon Airport.
Other firms include First Philippine Holdings Corp Infratil Asia Ltd group; and Premier Airport Group of SM Investments Corp.
Mactan-Cebu is the second-busiest airport in the country by passenger traffic.
Nearly seven million passengers used the airport last year, well above its 4.5 million annual capacity.
The project involves the right to build a new 8 million capacity terminal, as well as revamp the current terminal and operate the airport.
16 May 2013, Business WorldÂ
Seven groups have qualified to bid for a multibillion-peso public-private partnership (PPP) project to expand and operate Mactan-Cebu International Airport, the Transportation department said in a statement yesterday.
â€śAll seven groups vying for the first airport project to be bid out under President Benigno S. Aquino IIIâ€™s PPP program have been successfully prequalified,â€ť the department announced.
The press statement identified the parties as:
â€˘ MPIC-JG Summit Consortium composed of Metro Pacific Investments Corp. and JG Summit Holdings, Inc., with Franceâ€™s Aeroports De Lyon as operation and maintenance (O&M) partner;
â€˘ AAA Airport Partners composed of the Ayala and Aboitiz groups, with Texas-based Houston Airport System as O&M partner;
â€˘ Filinvest-CAI Consortium of Filinvest Development Corp. and Changi Airports Mena Pte. Ltd., with Changi Airport Saudi Ltd. as the O&M partner;
â€˘ San Miguel-Incheon Airport Consortium, composed of South Koreaâ€™s Incheon International Airport Corp. as lead member and three others, including San Miguel Corp.-led Optimal Infrastructure Development, Inc. — with Incheon acting as the O&M partner;
â€˘ First Philippine Airports led by First Philippine Holdings, Inc., with Wellington International Airport Ltd., NZ Airports Ltd., and Infratil Ltd. as O&M partners;
â€˘ Premier Airport Group led by SM Investments Corp., with Switzerland-based Flughafen Zurich AG as O&M partner; and
â€˘ GMR Infrastructure and Megawide Consortium of Megawide Construction Corp. and India-based GMR Infrastructure Ltd., with Delhi International Airport (P) Ltd. and GMR Hyderabad International Airport Ltd. as O&M partners.
The Transportation department said submission of technical and financial proposals will be on Aug. 28.
In a telephone interview, department spokesman Michael Arthur C. Sagcal, said schedule of opening of bids and awarding of the contract has yet to be finalized.
The P17.5-billion Mactan-Cebu airport project involves construction of a new terminal, rehabilitation of the existing facility and a 20-year O&M contract.
Airline-related firms were restricted from owning more than 33% of the participating consortium — a rule the government adopted to avoid conflict of interest.
Last week, the Transportation department also qualified five groups to bid for the P1.72-billion automated fare collection system for Light Rail Transit Lines 1 and 2 and Metro Rail Transit Line 3.
Three PPP projects have so far been awarded: the P1.96-billion Daang Hari-South Luzon Expressway Link, bagged by Ayala in December 2011; the P16.42- billion PPP School Infrastructure Project Phase One that was granted last year to the Citicore Holdings Investment, Inc.-Megawide and BF Corp.-Riverbanks Development Corp. consortiums; and the P15.86-billion Ninoy Aquino International Airport Expressway Phase II project that was awarded to San Miguel unit Optimal Infrastructure last week. — C. H. C. Venzon
Press Release from the Department of Transportation and CommunicationsÂ
16 May 2013
Manila, PhilippinesÂ â€“ All seven (7) groups vying for the first airport project to be bid out under President Benigno S. Aquino IIIâ€™s Public-Private Partnership (PPP) program have been successfully prequalified, the Department of Transportation and Communications (DOTC) disclosed on Thursday (May 16, 2013).
The announcement, which was made four (4) days ahead of schedule, signifies that the P 17.5-Billion Mactan-Cebu International Airport (MCIA) Passenger Terminal Building Project will be contested by the following groups:
â€śThis is a good number for ensuring optimal competition during the bid itself,â€ť said the agencyâ€™s spokesperson, Atty. Migs Sagcal.
Under the updated timeline for the bidding process, the qualified consortia will now have until August 28, 2013 to submit their bid proposals.
â€śWe are keen to find out which group will make the most advantageous offer to government.Â As we have said before, the more cooperation we have from the bidders, the sooner the public will enjoy the benefits of our projects,â€ť Sagcal added.
The MCIA Project will modernize the countryâ€™s second-largest aviation hub and the gateway to the Visayas with the construction of a new world-class international passenger terminal building having an 8-million annual passenger capacity.Â It will also renovate the existing terminal building, which has been operating at over-capacity with 6.7 million passengers going through the 4.5-million passenger capacity structure in 2012.
15 May 2013, The Philippine Star
by Prinz Magtulis
The government is planning to establish a fund to ensure unforeseen state liabilities arising from public-private partnership (PPP) projects are taken care of, a senior official said.
â€śWe are going to set up a fund to take care of the contingent liabilities for the PPP projects,â€ť National Treasurer Rosalia de Leon told reporters on the sidelines of the journalism seminar of the Economic Journalists Association of the Philippines.
â€śOur proposal was around P30 billion,â€ť she added.
The â€ścontingent liability fundâ€ť will not be part of the national outlay, instead it will be included in the unprogrammed fund and be tapped only if needed. The plan is already with the Budget department for consideration.
The PPP is the centerpiece economic program of the Aquino administration, which aims to tap private sector expertise in infrastructure projects, while government settles regulatory hindrances.
Since its launch in November 2010, a total of three projects worth roughly P28 billion have already been awarded with more on the pipeline.
The fund, De Leon said, is a â€śprecautionary measureâ€ť should there be â€śbreachesâ€ť or â€śdelaysâ€ť in the projects under contract with the private sector.
For instance, if the winning bidder fails to meet its commitments, the government may use the fund to buy the project and take over its operations. A â€śrisk assessmentâ€ť is being conducted on every PPP project.
At present, the government merely segregates funding in its annual budget for its portion on every PPP undertaking such as payment for right-of-way. This, De Leon said, will be different.
For one, since the fund will not be part of general appropriations, it may only be tapped if windfall revenues are recorded or borrowings are made.
â€śThis will only be used if needed. If there will be a trigger, that will be the time that we will use it,â€ť De Leon said.
â€śIt is one way again of managing our contingent liabilities. What we are saying is that we are prepared and that there is readiness on our part should there be risks,â€ť she pointed out.
She noted that even credit rating agencies had qualms on the lack of back-up for the countryâ€™s PPP scheme and that this should address that concern.
â€śThis is really more of a contingent measure, just in case, standby fund for all those contingent liabilities,â€ť De Leon said.
12 May 2013, Business World OnlineÂ
The Finance Department is proposing the inclusion of a national budget item that will provide for the governmentâ€™s contingent liabilities in public-private partnership (PPP) projects, a senior government official said over the weekend.
“We have submitted our recommendation to the DBM (Department of Budget and Management) to include a contingent liability fund in the budget as part of the unprogrammed funds,” National Treasurer Rosalia V. de Leon said.
“We proposed an initial amount of about P30 billion. But this is still under discussion with the DBM,” she added.
Ms. de Leon explained that the item would be a “standby fund” for government liabilities that may arise out of the concession agreements it enters into for PPP projects.
“It will be a fund that we can tap in case we canâ€™t deliver our part of the contract within the specified period of time,” she said.
“Also, for example, the tariff or fee that was supposed to be imposed was not imposed — thatâ€™s within our control, so weâ€™ll have to take on that,” Ms. de Leon added.
“If the liabilities are not triggered, then we wonâ€™t spend anything. Weâ€™re willing to put it [in the budget] because weâ€™re confident it will never be triggered.”
Out-of-budget items need a special appropriation or the reallotment of savings from programmed funds, which require extensive approvals.
Launched in 2010, the PPP program, one of the flagship projects of the Aquino administration, has attracted much criticism due to rollout delays.
Only three PPP deals have been awarded so far: the P1.96-billion Daang Hari-South Luzon Expressway Link to Ayala Corp.; the P16.42-billion PPP School Infrastructure Project Phase One to the Citicore Holdings Investment, Inc.-Megawide Construction Corp., Inc. and BF Corp.-Riverbanks Development Corp. consortiums; and the P15.86-billion Ninoy Aquino International Airport Expressway to Optimal Infrastructure Development, Inc., a unit of San Miguel Corp. — Bettina Faye V. Roc
13 May 2013, InterAksyon.com
by Rain Castro
National Treasurer Rosalia de Leon said the government is establishing a P30-billin contingent liability fund for its Public-Private Partnership (PPP) Program.
“This fund will take care, if ever, of some of the glitches of our PPP projects. This is really more of a contingent measure, a standby fund for all the contingent liabilities,” de Leon told participants of the EJAP-San Miguel Business Journalism Seminar held here last Saturday.
“That means that this is really one way again of managing contingent liabilities. We are prepared, we are proactive in terms of handling all these contingent liabilities,” she said.
De Leon said the Department of Finance already submitted the proposal to the Department of Budget and Management.
She said credit rating firms had asked about how the government deals with its contingent liabilities.
Contingent liabilities refer to debts the government may be forced to assume should any of its agencies party to the loan fail to honor its obligations. Under the Aquino administrationâ€™s PPP program, the government takes on part of the risk of the projects as a â€śpartnerâ€ť to these ventures.
It already bid out two of the PPP projects, namely the Daang Hari-SLEX Connector Road Project and the School Infrastructure Project. The government is scheduled to auction off two to three more this year.
The government is hoping its PPP projects would untangle the countryâ€™s infrastructure bottlenecks and give the economy a boost.