29 January 2013, Business World Online

by Cliff Harvey Venzon

 

Seven firms have so far formally indicated their interest in a P17.5-billion public-private partnership (PPP) project to expand and operate the Mactan-Cebu International Airport, a Transportation department official yesterday said.

Assistant Secretary Catherine P. Gonzales, who also heads the department’s bidding secretariat, said bid documents had been purchased by:
• Metro Pacific Investments Corp. (MPIC);
• JG Summit Holdings, Inc.;
• San Miguel Corp.;
• Aboitiz Land, Inc.;
• Filinvest Development Corp.;
• MacroAsia Corp.; and
• Prime Power Holdings Corp.

Interested parties, Ms. Gonzales said, have until Feb. 27 to purchase bid documents. Actual bidding is scheduled for August.

The project covers the construction of a new terminal, repairs to the existing facility, and an operation and maintenance deal.

Several of the firms identified by Ms. Gonzales could face problems with their bids, as the project’s terms disqualify companies with stakes in airlines.

San Miguel owns 49% of Philippine Airlines (PAL) and low-cost carrier Airphil Express, while JG Summit controls Cebu Air, Inc., the operator of budget carrier Cebu Pacific. Both firms earlier this month said they would appeal the prohibition.

MacroAsia, meanwhile, is the aviation logistics firm of PAL Chairman Lucio C. Tan. Yesterday, Corporate Secretary Marivic T. Moya said, “We still don’t know how DoTC (Department of Transportation and Communications) will look at MacroAsia.” PAL parent PAL Holdings, Inc.’s stake in MacroAsia is “not really substantial,” she claimed.

Ms. Moya said her firm’s concern would be raised during the Feb. 13 prebidding conference, which was rescheduled from Jan. 28 upon the prospective investors’ request.

Terms of reference for the project state that “bidders … cannot be an entity providing air transport services (airlines) in the Philippines, be they domestic or international; cannot have any interest, direct or indirect, in such entity; or cannot be owned by such entity.”

Officials of the five other firms were not immediately available for comment. Earlier this month, MPIC Chairman Manuel V. Pangilinan said his company was in talks with foreign airport operators for a consortium.

Aboitiz Land, meanwhile, is the real estate unit of Cebu-based Aboitiz Equity Ventures, Inc., which with Ayala Corp. has tied up with US-based airport operator ADC & HAS Airports Inc. for the project.

The PPP program has been hit by delays, with only two contracts for the P1.96-billion Daang Hari-South Luzon Expressway link and the P16.42-billion School Infrastructure Project Phase” having been awarded since the government unveiled the flagship infrastructure program in 2010.

Seven other PPP projects rolled out last year are still in the prebidding stages. C. H. C. Venzon