The Department of Transportation and Communications (DOTC) has given the GMR-Megawide consortium, the winning bidder of the Mactan-Cebu International Airport (MCIA) project, 20 days to comply with post-awarding requirements.
The awarding of the P17.5-billion project was halted for several months after various legal questions were raised by one of the losing bidders in connection with the auction of the MCIA project.
On April 4, the DOTC declared the GMR-Megawide consortium the winner of a contract to renovate the existing passenger terminal building, build a new one for international flights, and operate the airport for 25 years.
“This project should have been done at least a decade ago, so there is no more time to waste. We have resolved all issues, we are ready to defend our decision, and it is now time to push forward on Daang Matuwid (straight path) by delivering our services to the people,” DOTC spokesperson Michael Sagcal said in a statement.
Post-award requirements include the submission of an irrevocable letter of credit in the amount of P180 million and the payment of the premium to the government through the MCIA Authority.
Once the requirements are satisfied, the concession agreement will be signed by the parties, paving the way for the implementation of the project over the next three to four years.
Louie Ferrer, Megawide chief marketing officer, said at the weekend the consortium aims to start construction in the early part of 2015, as the terms of reference set that the new terminal should be delivered within 36 months.
In the bidding held in November last year, the GMR-Megawide consortium proposed to undertake the project at a premium of P14.4 billion. This offer bested those of six other bidders.
Meanwhile, world-renowned designer Kenneth Cobonpue said he had been approached by representatives of GMR-Megawide to take charge of the design of the MCIA project.
“We have been discussing,” Cobonpue told reporters.
Even before the GMR-Megawide consortium was awarded the project, its officials said they had been meeting with private stakeholders in line with their aim to make the MCIA project a collaborative effort with inputs from Cebuanos.
Ferrer and Andrew Acuaah-Harrison, GMR deputy chief executive officer, both said they have particularly met with tourism, hospitality and airline sector representatives to discuss airport operations so they could develop the MCIA holistically.
“I told them (GMR-Megawide officials) to come back to me after the project has been awarded to them,” Cobonpue said.
Disappointment
Meanwhile, Filinvest-Changi consortium has expressed disappointment at the DOTC’s decision to award the project to GMR-Megawide.
Filinvest-Changi, which made the second-highest offer for the MCIA expansion project, has raised with authorities its concerns against GMR-Megawide over alleged violations of bidding rules.
“We note the decision of DOTC to award the Mactan-Cebu International Airport Project to the GMR-Megawide Consortium. We are disappointed by the DOTC Prequalification, Bids and Awards Committee’s dismissal of the issues we raised during the post-qualification review of the MCIA project,” Filinvest-Changi said in an official statement released April 6, two days after DOTC awarded the contract to GMR-Megawide.
After the DOTC announced the groups that prequalified for the bidding, Filinvest-Changi submitted a letter raising several concerns against GMR-Megawide, including a violation of bidding rules on conflict of interest, as well as its questionable financial capacity and long-term commitment.
“We believe that the conflict of interest issue and other matters raised are valid, relevant and substantive to the bidding process and rules,” read the Filinvest-Changi statement, adding that its primary concern in raising the issues was to ensure adherence to the bidding process and rules to produce the best outcome for the Philippines.
In a recent interview, Filinvest-Changi officials stressed they also did not want to delay the start of the project but only wanted what is best for Cebu and the MCIA.
“If they just follow the bidding rules, we are in good ground,” said Filinvest executive vice president and chief operating officer Eleuterio D. Coronel, in an interview weeks before the project was awarded.
He was asked if Filinvest-Changi intends to take the matter to court if GMR-Megawide won the contract, he said the company would have to determine how DOTC sheds light on their concerns.
Legal ground
The DOTC is confident it has the legal basis to justify its awarding of the MCIA project to the winning bidder despite a case filed at the Supreme Court to stop its proceeding.
“We will have to honor any court issuance that will prevent the project from moving forward, even if we believe that there is no more time to waste in improving the country’s second busiest airport,” DOTC Secretary Joseph Emilio Abaya said in a statement.
“What we can assure Cebuanos who are awaiting this project is that we have the law on our side and we will defend this project to the end,” Abaya said.
The transport chief also said the DOTC’s decision to award the MCIA project to the GMR-Megawide Consortium enhances the international community’s perception of the Philippines as an investment destination, thus attracting foreign direct investments.
“By sticking to bidding rules and refusing to be influenced by external factors, we are showing the world that the country now has an excellent investment climate,” Abaya pointed out.
With a history of multibillion-peso infrastructure contracts being encumbered by legal and political issues, the Philippines has long been viewed as a risky investment option by businessmen around the world.
Several of these contracts, in fact, were entered into by the transport agency during previous administrations. –– Roumina M. Pablo
Photo from www.mciaa.gov.ph
Thats really good news I was there in Manila from 7-11 th April 2014. They really need the new airport ASAP.
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