DOTC sweetens terms of Cebu airport project
MANILA, Philippines - The Department of Transportation and Communications is introducing further changes in the concession agreement for the proposed P17.5 billion Mactan-Cebu international airport passenger terminal to ensure it attracts investors.
The DOTC released Special Bid Bulletin 15 – 2013 and 16 – 2013, which contains the department's response to queries of the prequalified bidders and the revised concession agreement.
Among the amendments is the extension of the moratorium on the construction of new airports, as well as the upgrade of existing domestic airports to international, in Cebu and Mactan to 25 years from the 20 years contained in the original concession agreement.
"The grantors shall procure that during the subsistence of this concession agreement, neither the grantors nor any government authority shall, at any time before the end of the 25th contract year, operate or cause to be operated a new international or domestic airport for handling scheduled commercial passenger traffic taking off or landing in the Mactan and Cebu islands,” the bulletin said.
The DOTC clarified that the moratorium does not apply on the development of other means of transport or any new or existing airports for chartered flights.
The ban would also apply to airports in Bantayan and Camotes islands in Cebu.
Also, the DOTC would impose a ban on the construction of any competing commercial car park facility or any competing hotel facilities on the land under the control of the Mactan Cebu International Airport Authority, within the 500 meter radius from the perimeter of the project land.
These sweetened terms are in addition to those earlier agreed upon by the DOTC. The government agreed to shoulder the payment of certain real property taxes, and to extend the period of the concession agreement to 25 years instead of 20 years.
The DOTC also agreed to transfer the operation and maintenance of the aprons from the grantors to the concessionaire, and to allow flexibility in adding capacity.
The bidding for the Mactan-Cebu project was originally slated last August but was postponed since the DOTC wanted to make changes to the concession agreement.
With the changes, the DOTC expects "more competitive" bid proposals from the seven pre-qualified groups.
The DOTC had pre-qualified 7 groups, namely Metro Pacific Investments Corp. - JG Summit airport consortium; AAA Airport Partners led by the Ayala and Aboitiz groups; Filinvest - CAI consortium which includes the operator of Singapore's Changi airport; San Miguel Corp. - Incheon Airport consortium; First Philippine Airports consortium led by First Philippine Holdings Corp. and Infratil Asia Ltd.; Premier Airport group led by SM Investments Corp., Citadel Holdings Inc. and the operator of Zurich (Switzerland) airport; and GMR Infrastructure (operator of airports in India, Turkey, Maldives) - Megawide consortium.