Posts Tagged ‘public-private partnership’


07 April 2014

 MCIA Passenger Terminal Building Project Design

The much awaited awarding of the 7th PPP project under the Aquino administration finally pushed through after months of intense deliberation. The 17.5 Billion Mactan Cebu International Airport project of the Department of Transportation and Communications was awarded to the consortium of Megawide Construction Inc. and GMR Infrastructure which gave the highest bid for the project at Php14.404 Billion, besting AAA Airport Partners, Filinvest-CAI Consortium, First Philippine Airports, MPIC-JGS Airport Consortium, SM-led Premier Airport Group and San Miguel Incheon-Airport Consortium.

Public-Private Partnership Center Executive Director Cosette V. Canilao expressed satisfaction over the awarding of the MCIA to the Megawide-GMR consortium. “This is indeed very good news for the PPP program. Amidst all the controversies that surrounded the MCIA project, government stood its ground and upheld the rules that guided the bidding process. In the end, it is very clear that government acted with transparency and impartiality.”

“The interest of both the public and that of our private partners were equally upheld. We are certainly proud of that achievement. This sends a clear signal to our investors that if you do business in the Philippines you are certain to get a square deal,” Canilao added.

The Notice of Award (NOA) was issued to the Megawide-GMR consortium last Friday, April 4 after the DOTC’s Project Bids and Awards Committee handed down  its decision. According to the amended BOT Law, as soon as the NOA is issued, the winning project proponent has 20 days to submit several requirements to the Implementing Agency (IA).

The MCIA project is the first airport project of the DOTC and is set to modernize the current airport in Cebu with the construction of an international passenger terminal building at the same time expanding the existing passenger terminal. The modernization of the MCIA will address the growing influx of passengers of the country’s second busiest airport next to the Ninoy Aquino International Airport.


DOTC awards Mactan airport project to GMR-Megawide Consortium

InterAksyon, 05 April 2014

By Darwin G. Amojelar


MANILA – The Department of Transportation and Communications (DOTC) on Friday night awarded the P17.5 billion Mactan Cebu International Airport Project to the GMR-Megawide Consortium.

“Yes, DOTC has awarded to Megawide-GMR. All issues raised have been resolved and closed. We have informed all bidders how all issues were resolved and the decision of DOTC,” Transport Secretary Joseph Emilio Abaya said in a text message.

“The DOTC and the MCIA board and the BAC came to that decision applying the rules, the law and the policies all in good faith with the best interest of the country and our people in mind,” he said.

The GMR-Megawide Consortium had emerged as the highest bidder after offering to undertake the project for P14.4 billion.

DOTC had scheduled the award on January 6 and the signing of the contract on February 6, but the second highest bidder — the Filinvest-Changi Consortium — complained that Megawide-GMR had a conflict of interest with another bidder, First Philippine Airport Consortium.

The GMR-Megawide Consortium is composed of India’s GMR Infrastructure Ltd and locally listed Megawide Construction Corp, while First Philippine Airports Consortium includes Malaysia Airports Holdings Berhad (MAHB). GMR and Malaysia Airports are partners in an airport project outside the Philippines.

The controversy reached the halls of the Senate, with one senator from Cebu province, Serge Osmena, pressing for an inquiry.

In a statement, Megawide chairman Michael Cosiquien said the group is “delighted to be awarded the Mactan-Cebu International Airport project.”

“We firmly believe that the GMR-Megawide Consortium has the right credentials and capabilities to undertake this prestigious project and deliver a world class airport that Cebuanos and Filipinos will be proud of,” he said.

“We would like to thank the DOTC on concluding a fair and transparent bid process in a highly professional manner. We would like to reiterate that the GMR-Megawide Consortium has faithfully observed all requirements set by DOTC and the Pre-qualification Bids and Awards Committee during the course of this bid and now look forward towards a successful undertaking of the project,” Cosiquien said.

“We believe that our strategic plan will result in the delivery of a very efficient, passenger-oriented and commercially sustainable airport that will provide the required capacity to meet significant growth through the redevelopment of the existing terminal and construction of a brand new terminal within three years,” Srinivas Bommidala, GMR chairman for the airports sector said in the same statement.

One of the Philippine government’s public-private partnership (PPP) projects, the Mactan airport venture 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.


Megawide-led consortium bags Mactan airport expansion contract

Rappler, 05 April 2014


The consortium hurdles a disqualification case filed against it as it denies conflict of interest arising from alleged ties with the German Fraport


MANILA, Philippines – The consortium of Filipino-owned Megawide Construction Corp and Bangalore-based GMR Airports was finally awarded the contract for the expansion of the Mactan Cebu International Airport.

Department of Transportation and Communications (DOTC) spokesperson Michael Arthur Sagcal said on Friday, April 4, that the public private partnership (PPP) project has been awarded to the consortium after a disqualification case filed against them was settled.

The Megawide-GMR tandem submitted the highest bid of P14.404 billion for the project December 12 last year, followed by the Filinvest-CAI Consortium, which submitted P13.999 billion as bid. (READ:Megawide-led consortium submits highest bid for Mactan airport)

The project, which will modernize the country’s second largest aviation hub by constructing a new international passenger terminal building and by expanding its existing passenger terminal, will cost P17.5 billion. It will be shouldered entirely by the winning bidder.

Filinvest, however, asked DOTC in a letter dated Jan 2, 2014 to disqualify the top bidder for alleged conflict of interest involving GMR Infrastructure of India, First Philippine Airports Consortium, and the Malaysia Airports Holdings Berhad (MAHB). (READ: Filinvest wants top Cebu airport bidder disqualified)

Even Senator Sergio “Serge” Osmeña III supported the disqualification by revealing in February GMR’s ties with Frankfurt Airport Services Worldwide (Fraport), the operator partner and majority beneficial owner of Piatco (Philippine International Air Terminals Company Incorporated), the consortium in the NAIA 3 debacle. (READ: Cebu airport winning bidder another Piatco?)

The Megawide-GMR tandem has repeatedly denied the alleged conflict of interest.

The two companies first tied up in 2013 to create a joint venture company for the PPP project. (READ:Megawide, Indian firm tie up for Cebu airport bid–

MCIA expansion project formally awarded to GMR-Megawide

Manila Bulletin, 05 April 2014

By Malou M. Mozo


Mactan, Cebu – After nearly four months of delay and several controversies attendant to contract awarding, the Department of Trade and Communications (DOTC) has formally awarded the rehabilitation, expansion and operation of the Mactan-Cebu International Airport (MCIA) to the consortium comprised of Megawide Construction Corp. and India’s GMR Airports.

In an announcement made late Friday afternoon, consortium principals said the development is a major step closer towards the realization of a world-class airport for Cebu.

“We are delighted to be awarded the Mactan-Cebu International Airport project. We firmly believe that the GMR-Megawide Consortium has the right credentials and capabilities to undertake this prestigious project and deliver a world class airport that Cebuanos and Filipinos will be proud of,” said Michael Cosiquien, Megawide Construction Corp. chairman and chief executive officer.


GMR-Megawide gets Mactan-Cebu airport project

Sun Star Cebu, 05 April 2014


(Updated) The Department of Transportation and Communication (DOTC) awarded to the GMR-Megawide consortium the Mactan airport development and management contract, three officials confirmed on Friday.

Two highly-placed sources said that the Mactan Cebu International Airport Authority (MCIAA) Board convened at the DOTC in Manila Friday morning and awarded the project, based on the recommendation of the Bids and Awards Committee (BAC) chaired by Undersecretary Jose Perpetuo Lotilla.

Both sources have first-hand information on the proceedings but declined to comment, deferring instead to the airport’s manager, Engr. Nigel Paul Villarete. Villarete declined to take calls from Sun.Star Cebu on Friday.

However, GMR-Megawide confirmed the awarding in a press statement, in which it thanked the DOTC for “concluding a fair and transparent bid process in a highly professional manner.”

“We are delighted to be awarded the MCIA project. We firmly believe that the GMR-Megawide consortium has the right credentials and capabilities to undertake this prestigious project and deliver a world-class airport that Cebuanos and Filipinos will be proud of,” said Michael Cosiquien, chairman and CEO of Megawide Construction Corp.

Serge to SC

Just a day before the awarding, Senator Sergio Osmeña III asked the Supreme Court (SC) to stop the DOTC and MCIAA from issuing a notice of award and a concession agreement to GMR-Megawide.

Osmeña told the SC that he disagreed with the DOTC’s decision to consider GMR-Megawide a qualified bidder. The senator said that GMR Infrastructure Limited of India had violated a conflict of interest prohibition in the instructions given to prospective bidders.

GMR-Megawide has offered the Philippine Government P14.4 billion up front to handle the MCIA project. This premium is on top of the estimated P17.5 billion needed to renovate the existing terminal and build a new passenger terminal.

The contract will also cover the management of both terminals and all landside facilities of the airport, including commercial spaces, for 25 years.

Playing field

Only the SC can, by issuing a TRO, stop the project, DOTC Secretary Joseph Emilio Abaya said in a press conference in Cebu last Thursday.

He had also confirmed that the MCIAA Board was scheduled to convene on Friday, once the PBAC had submitted a resolution on the bidding.

(Villarete’s office also confirmed that the MCIAA Board met Friday, April 4, in Manila, but declined to reveal its outcome.)

Secretary Abaya, in last Thursday’s press conference, said there were “remedies available” to any losing bidder who wants to question the BAC’s recommendation.

He also said, as part of his speech during the inauguration of the Pier 1 Passenger Terminal of the Cebu Port Authority, they DOTC did its best to keep the playing field level.

“Otherwise, if you make the playing field in favor of somebody, no one will ever bid for the next project,” Abaya said.

Questions on GMR-Megawide’s capability to handle the Mactan airport project were previously raised by the second highest bidder, the consortium of Filinvest Development Corp. and Changi Airports. Their bid was P13.99 billion.

Other bidders for the Aquino administration’s first public-private partnership for an airport included SM, the consortium of Metro Pacific Investments Corp and JG Summit, San Miguel-Incheon and First Philippine Airports Consortium.

In his petition, Osmeña pointed out that First Philippine Airports includes Malaysia Airport Holdings Berhad, whose managing director, Tan Sri Bashir Ahmad bin Abdul Majid, also serves as a director in two subsidiaries of GMR.

He said the prohibition against conflict of interest “should be strictly applied.” The allegations Osmeña raised in his petition to the SC are the same ones he made in a privilege speech last February 25, 2014.

“The PBAC illegally refused to disqualify the GMR-Megawide Consortium in the face of unrefuted evidence of GMR’s poor financial health and track record in its international airport operations,” Osmeña told the Court.

GMR-Megawide no longer referred to the allegations in its statement on Friday.

“We believe that our strategic plan will result in the delivery of a very efficient, passenger-oriented and commercially sustainable airport that will provide the required capacity to meet significant growth through the redevelopment of the existing terminal and construction of a brand new terminal within three years,” said Srinivas Bommidala, chairman of the airports sector in GMR Infrastructure.

“Going forward, the GMR-Megawide consortium will be closely collaborating with Cebu-based as well as international architects and designers to develop the project.”

The bidding for the Mactan airport project has run for 15 months; the invitation to pre-qualify and bid was published in December 2012. (EOB/With IDA/Sun.Star Cebu)



Department of Transportation and Communications, 06 April 2014


Department of Transportation and Communications (DOTC) Secretary Joseph “Jun” Abaya says that his agency’s decision to award the Mactan-Cebu International Airport (MCIA) project to the GMR-Megawide Consortium enhances the international community’s perception of the Philippines as an investment destination.

“By sticking to bidding rules and refusing to be influenced by external factors, we are showing the world that the country now has an excellent investment climate.  Gone are the days when big-ticket contracts would be awarded despite being tainted with irregularities.  As promised, bidding at the DOTC is conducted on a level playing field, because we follow Daang Matuwid,” said Abaya.

With a history of multi-billion-peso infrastructure contracts being burdened with legal and political issues, the Philippines has long been viewed as a risky investment option by businessmen around the world.  Several of these contracts, in fact, were entered into by the transport agency during previous administrations.

Abaya believes that part of the process in attracting foreign direct investments (FDIs), which will boost the Philippine economy, is enhancing confidence in the country’s institutions.  This entails a perception that, if investors pour their money into the country, everything will be aboveboard, their investments will be protected by our laws, and the government will treat them fairly.

“There is only one way to create that perception: to prove it with our actions.  If we promise honest and competent governance, we must show it.  If we promise a level playing field, we must do it.  We made those promises to investors when we began with this project, and now we have proven it.  This will be good for our country, and of course, the people of Cebu who have long been waiting for a world-class airport,” Abaya remarked.

As to the case filed in the Supreme Court seeking to stop the project from proceeding, the DOTC is confident that it has all necessary legal bases to justify its actions.  Nevertheless, should the Supreme Court issue a Temporary Restraining Order (TRO) or any similar order in that case, the DOTC has expressed that it will abide with such ruling.

“We will have to honor any court issuance that will prevent the project from moving forward, even if we believe that there is no more time to waste in improving the country’s second busiest airport.  What we can assure Cebuanos who are awaiting this project is that we have the law on our side and we will defend this project to the end,” said Abaya.


DOTC AWARDS MCIA PROJECT TO GMR-MEGAWIDE – Cebu to Get World-Class Airport; Local Tourism, Economy to Grow

Department of Transportation and Communications, 05 April 2014


Following several months of reviewing various legal questions raised by a bidder in connection with the Mactan-Cebu International Airport project, the Department of Transportation and Communications (DOTC) and the Mactan-Cebu International Airport Authority (MCIAA) finally awarded the 25-year concession to the GMR-Megawide Consortium yesterday, 4 April 2014.

“Amidst all the noise drummed up in different forums the past few months, the DOTC has allowed nothing but the law and the country’s interests to matter in awarding the project.  Finally, Cebuanos will soon get the world-class airport they deserve – one that will not only boost the province’s economy and tourism industry, but the whole country’s as well,” said DOTC Spokesperson Michael Arthur Sagcal.

“This project should have been done at least a decade ago, so there is no more time to waste.  We have resolved all issues, we are ready to defend our decision, and it is now time to push forward on Daang Matuwid by delivering our services to the people,” Sagcal added.

In the bidding conducted in November last year, the GMR-Megawide Consortium proposed to undertake the project, which entails renovating the existing passenger terminal building (PTB), building a new one to service international flights, and operating the airport, at a premium of P 14.4 Billion.  This offer bested those of six (6) other groups.

GMR-Megawide will now have twenty (20) days to complete the post-award requirements, such as the submission of an irrevocable letter of credit in the amount of P 180 Million, and the payment of the premium amount to government through the MCIAA.  Once the requirements are satisfied, the concession agreement will be signed by the parties, paving the way for the implementation of the project over the next three (3) to four (4) years.