GMR-Megawide remits P14.4B this week

Posted at 04/21/14 8:51 AM

MANILA, Philippines - The tandem of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Airports Ltd. is set to remit P14.4 billion to the government this week as premium payment to undertake the P17.5-billion Mactan-Cebu International Airport (MCIA) expansion project.

Louie Ferrer, chief marketing officer of Megawide, told The STAR the amount to be paid represents the bid made by the joint venture last Dec. 12 and which would be settled before the April 25 deadline set by the Department of Transportation and Communications (DOTC).

“We will settle payment before April 25,” Ferrer said.

The DOTC issued a notice of award to the GMR-Megawide tandem last April 4 for the agency’s second Public Private Partnership (PPP) project after the P1.72 billion automated fare collection system (AFCS) project.

The joint venture that aims to transform the country’s second busiest airport into the world’s first resort airport was given 20 days by the DOTC to complete the requirements for the PPP project.

Michael Arthur Sagcal, DOTC spokesperson, said earlier the completion of the premium payment for the Mactan Cebu International Airport Authority (MCIAA), as well as the submission of an irrevocable letter of credit in the amount of P180 million, are part of the post-award requirements.

Once the requirements are satisfied, the DOTC, MCIAA, and the winning bidder would sign the 25-year concession agreement paving the way for the implementation of the project over the next three to four years.

The DOTC and MCIAA awarded the project to the GMR-Megawide tandem after brushing aside the issues raised by second highest bidder led by the Filinvest Group of taipan Andrew Gotianun.

The Mactan Cebu International Airport expansion project is the biggest and first airport PPP project to be awarded by the Aquino administration.

This is also the second PPP project to be awarded by the DOTC after signing the 10-year concession agreement with the tandem of conglomerate Ayala Corp. and infrastructure giant Metro Pacific Investments Corp. (MPIC) through the AF Consortium for the P1.72 billion automated fare collection system (AFCS) for the Metro Rail Transit and Light Rail Transit (MRT-LRT) last March 31.

The Megawide-GMR Group submitted the highest bid of P14.404 billion for the MCIA project followed by the Filinvest – CAI Consortium with P13.999 billion, and Premier Airport Group of SM Group of retail magnate Henry Sy with P12.5 billion.

Other groups that submitted bids included the MPIC-JGS Airport consortium led by MPIC and JG Summit Holdings (P11.23 billion); AAA Airport Partners led by the Ayala Group and Cebu-based Aboitiz Land (P11.088 billion); the San Miguel Corp.-Incheon Airport consortium (P9.05 billion); and the Lopez Groups’ First Philippine Airports (P4.7 billion).

The PPP project would modernize the country’s second-largest aviation hub with the construction of a new world-class international passenger terminal building with an annual capacity of eight million passengers and at the same time expand the existing terminal building with a capacity of 4.5 million which has been operating at over-capacity with 6.7 million passengers since 2012.

The GMR-Megawide consortium has earmarked at least P20 billion to transform the country’s second largest international gateway into the world’s first resort-airport.

The airport would be transformed into a resort-airport facility featuring 20 aircraft parking stands with aerobridges and 13 aircraft parking stands served by bus transfers. It would also feature a dedicated international and domestic terminals connected by a link bridge for the convenience of passengers making connecting flights.

Furthermore, the airport would have a total of 149 check-in counters for international and domestic flights for passenger convenience from the current number of 44. The new facility would also feature unique and exciting retail, food and beverage shops for both domestic and international passengers as well as airline lounges and an in-line automated baggage handling system.

The airport would also include an adjoining airport village mall complex with retail and entertainment options for passengers’ family and friends.