Airline owners can now bid for Mactan-Cebu airport

Posted at 02/01/13 11:42 PM

MANILA, Philippines - The bid criteria for the Mactan-Cebu International Airport Passenger Terminal Project will be revised to encourage more proposals and make the process more competitive, the Department of Transportation and Communications (DOTC) said Friday.

The DOTC, in a press statement, said it will include strict competition safeguards in the concession agreement to prevent conflict-of-interest situations during the project's operation stage.

“After careful evaluation and deliberation on the best policy to adopt for the new Mactan-Cebu International Airport Terminal Project that would both maintain a level playing field and allow the infusion of expertise and experience into the operation of the new terminal, we have decided to modify our ITPB for the project,” Transportation Secretary Jun Abaya said.

The DOTC said the revision is in response to appeals from both local and foreign companies interested in taking part in the bidding process.
The new Instructions to Prospective Bidders, which has been uploaded at http://www.dotc.gov.ph, amends the earlier bid instructions posted to allow airline companies, their subsidiaries, affiliates, and their parent companies to have a limited stake in the entities that will qualify to bid for the project.
However, the ITPB itself retains the rule which prevents airline companies and airline-related entities from having a direct interest in the Facility Operator – an entity which will actually operate the airport – except in the case of an airline-related entity which itself satisfies the minimum operations and maintenance experience requirement of the bidder.
According to the new ITPB, airline companies and entities having any relationship with an airline company may own up to a maximum of 33% of the shares in the winning bidder’s Special Purpose Company (SPC) which will be given the concession, as long as no airline company is directly involved in operations.
The P17.5-billion project involves the construction of a new world-class international passenger terminal building in MCIA with a capacity of about 8 million passengers per year.

It involves renovation and expansion of the existing terminal; installation of all the required equipment; and the operation of both new and existing facilities.
When the new international terminal building is completed, the existing terminal, which currently caters to both domestic and international passengers, will then be converted into an exclusively-domestic passenger terminal.