The Department of Transportation and Communications and Megawide Construction Corp.- GMR-India signed today the Php 17.52 billion contract for the construction of a new passenger terminal for the Mactan-Cebu International Airport (MCIA).  This is the 7th PPP project under the Aquino administration and is the first airport project of the DOTC under a PPP arrangement.

PPP Center Executive Director Cosette V. Canilao expressed great satisfaction over the signing of the MCIA contract. “This is a long time coming. We worked very hard to reach this moment. We know that the decision to stand by the results of the bidding process and defend what is true will prevail. We are very happy with today’s signing,” she said.

Played by the rules

Srinivas Bommidala of GMR welcomed the signing, saying that both GMR and its partner Megawide placed their best effort into the bidding process.   Bommidala added that, “We played according to the rules of the game. We firmly believe that Cebu province … will see a positive economic impact from the modernization of the Cebu airport.  I would like to assure you, and the people of Cebu and the stakeholders concerned that the consortium of GMR and Megawide is fully equipped complete this prestigious project.”

The GMR chair for airports emphasized that the MCIA will be commercially viable and will reflect the culture and heritage of the Cebuano.

Great passenger experience

Michael Cosiquien chair and CEO of Megawide Construction Corp. said, “We are here also to settle the 14.4 billion upfront payment that we offered to the Philippine government to build the MCIA, which is ahead of the deadline set. We are fulfilling our obligation much earlier than required under the law to show our commitment to the project.”

Earlier, the Megawide-GMR consortium received flack about the initial design of the MCIA released to the public. Cosiquien said that they are collaborating with internationally known Cebuano designers, who will be instrumental in building the MCIA and “which Filipinos can be proud of and Cebuanos can call their own. Truly, the daang matuwid works,” Cosiquien said.

Nigel Paul Villarete, General Manager of the Mactan-Cebu International Airport Authority expressed optimism that despite the challenges that the project faced the country will reap great rewards in terms of economic development.

The work ahead

Under the concession agreement, Megawide-GMR will construct a new passenger terminal and its related infrastructure, construct the terminal’s apron, renovate and expand the existing terminal, install the required instruments and IT facilities necessary to its operations and operate and maintain the terminal for the next 25 years.

Construction of the airport is expected to start on January 2015. Meanwhile, Megawide-GMR is expected to work on the airport’s detailed engineering and design based on the prescribed standards and specifications, which the DOTC will approve.