12 December 2013

Opening of Financial Proposals for Mactan-Cebu International Airport Project

The consortium of India’s GMR Infrastructure and the Philippines’ Megawide Construction submitted the best bid for the country’s first airport public-private partnership (PPP) project.

It was revealed during the financial bid opening of Department of Transportation and Communications (DOTC) that all seven bidders for the PhP 17.5 Billion Mactan-Cebu International Airport (MCIA) New Passenger Terminal Building offered to do the project at no cost to the government and at same time pay government premium for the project.

GMR-Megawide Consortium gave the highest bid, offering government a premium of PhP14,404,570,002.99 which bested six other bidders from the country’s top conglomerates.
GMR Infrastructure Limited is an Indian firm that operates airports in India, Turkey and Maldives. GMR has also implemented several other PPP projects in India’s airport, energy, highway and urban infrastructure sectors.

Megawide on the other hand is a publicly listed construction firm in the Philippines that has been actively participating in the PPP Program. Megawide was awarded contracts for both phases of the Department of Education’s PPP for School Infrastructure Project, and recently the Department of Health’s Modernization of the Philippine Orthopedic Center.

Other bidders also offered premiums to DOTC for the MCIA project— Filinvest – CAI consortium which includes the operator of Singapore’s Changi airport with Php13,999,999,999.99; Premier Airport group led by SM Investments Corp., Citadel Holdings Inc. and the operator of Zurich, Switzerland airport with PhP12,500,088,888.88; Metro Pacific Investments Corp. – JG Summit airport consortium which includes France’s Aeroports de Lyon with PhP11,230,000,000.00; AAA Airport Partners led by the Ayala and Aboitiz groups and Houston airport operator ADC&HAS with PhP11,088,888,889.00; San Miguel & Incheon Airport consortium, led by the SMC conglomerate and the operator of South Korea’s Incheon Airport, with PhP9,050,000,000.00; and First Philippine Airports consortium led by First Philippine Holdings Corp. and New Zealand’s Infratil Asia Ltd with PhP4,700,000,000.00.

DOTC Undersecretary Jose Perpetuo Lotilla, Chairperson of the Special Bids and Awards Committee, reminded the bidders that the financial bids are still subject to continuing evaluation before the Notice of Award is issued. DOTC targets to issue the Notice of Award to winning bidder early January 2014.

The MCIA Project will modernize the country’s second-largest aviation hub and gateway to the Visayas with the construction of a new world-class international passenger terminal building. The winning bidder 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.