DOTC Taps Independent Consultant for P17-B Mactan Airport Expansion


MANILA, Philippines – The Department of Transportation and Communications (DOTC) is spending P122.6 million ($2.8 million) to tap an independent consultant for the P17.5 billion ($399.47 million) Mactan-Cebu international airport expansion project.

An independent consultant is essential in all government infrastructure projects, DOTC spokesperson Michael Arthur Sagcal said.

“It will act as government’s engineer and representative in monitoring the project’s progress and ensuring compliance by the concessionaire with its obligations,” Sagcal said in a text message, Friday, June 20.

In a Request for Expression of Interest, DOTC is set to procure an independent consultant for the public-private partnership (PPP) project that was awarded to the tandem of Megawide Construction Corp. and Bangalore-based GMR Group.

Interested consultants were given until Monday, July 21, to submit their eligibility documents to the DOTC Bids and Awards Committee (BAC).

Bidding Criteria

The agency’s BAC would draw up the short list of consultants from the submissions made and have been determined as eligible in accordance with the provisions of Republic Act No. 9184 or the Government Procurement Reform Act.

Criteria for the short listing of 5 bidders include 45% for applicable experience; 45% for the qualification of key personnel; and 10% for current workload.

The Winning Bidder

DOTC issued a Notice of Award to the GMR-Megawide tandem in April. The project aims to modernize the country’s second largest aviation hub by constructing a new international passenger terminal building and by expanding its existing passenger terminal.

The existing terminal building has a capacity of 4.5 million and has been operating at over-capacity with 6.7 million passengers since 2012.

The Megawide-GMR tandem submitted in December 2013 the highest bid of P14.404 billion ($328.63 million) for the project, followed by the Filinvest-CAI Consortium, which submitted P13.999 billion ($319.39 million) as bid. (READ: Megawide-led consortium submits highest bid for Mactan airport).

Filinvest, however, asked the DOTC in January to disqualify the top bidder for alleged conflict of interest involving GMR Infrastructure of India, First Philippine Airports Consortium, and the Malaysia Airports Holdings Berhad (MAHB).

In February, Senator Sergio “Serge” Osmeña III supported the disqualification by revealing GMR’s ties with Frankfurt Airport Services Worldwide (Fraport), the operator partner and majority beneficial owner of Piatco (Philippine International Air Terminals Company Incorporated), the consortium in the NAIA 3 debacle. (READ: Cebu airport winning bidder another Piatco?)

The Megawide-GMR tandem has repeatedly denied the alleged conflict of interest. The same tandem has earmarked at least P20 billion ($456.31 million) for the project. – Rappler.com

After Mactan-Cebu, Megawide Eyes 6 More Airport Projects


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The future of Mactan-Cebu International Airport

Cebu City , Philippines – Megawide Construction Corp., one of the most active local companies in the public-private partnership (PPP) scene, is joining more auctions for airport rehabilitation and operations.

The consortium of Megawide and Bangalore-based GMR Infrastructure Ltd. will continue their partnership that recently bagged the P17.5-billion Mactan-Cebu International Airport (MCIA) deal, executives said.

Megawide chief financial officer Oliver Tan said the company is planning to join the bidding for six more airport PPP projects this year.

“The Philippines is the fastest growing economy in this region. Tourism is a growing business and considering that, it generally means that airport development is good in the Philippines,” said Manish Khalghatgi, vice president for corporate communications of GMR.

Khalghatgi said Megawide-GMR tandem is ready for more airport projects particularly in Visayas and Mindanao.

The government plans to roll out more PPP projects this year including the P15.92-billion operation and maintenance (O&M) of the Laguindingan airport, the P2.34-billion enhanced O&M of the new Bohol airport. It also listed the O&M of the Puerto Princesa, Iloilo, Davao, and Bacolod airports as PPP projects.

The Megawide-GMR consortium last week received the formal award of the P17.5-billion MCIA project, the largest PPP offered to date.

Aside from airport projects, Megawide is also interested to be the contractor for the winning bidder of the P65-billion Light Rail Transit Line 1 elevated railway extension to Cavite province, Tan said. Megawide is also preparing to join the bidding for the P35.6-billion Cavite-Laguna Expressway project.

So far, Megawide has bagged four PPP projects: the P5.7-billion new Philippine Orthopedic Center, the MCIA, the PPP School Infrastructure Project Phase One (PSIP-1) and PSIP-2.

Despite numerous projects on its plate, Megawide is still prepared to pursue more infrastructure ventures.

“The airport is a collaboration with GRM and Megawide. We will have an entirely separate organizational structure,” Tan said.

Megawide also has manageable debt levels as available cash is larger than existing debts, Tan said.

For its part, GMR has the skill and the expertise for end-to-end airport projects that deal with financing, rehabilitation and operation, Khalghatgi said.

Megawide is one of the top contractors in the Philippines while GMR is the world’s third largest private airport developer in terms of passenger traffic.

Source: Neil Jerome C. Morales (The Philippine Star)