Mactan-Cebu Int’l Airport’s 2nd Runway

Second runway for Mactan-Cebu International Airport is in the offing.

MCIAA, which owns and manages the Mactan-Cebu International Airport, has started laying the groundwork for an additional runway according to Nigel Paul C. Villarete, MCIAA general manager.

Artist’s rendition of Mactan-Cebu International Airport’s second runway.

“Its construction is not a priority concern at present but they were preparing for a projected increase in the number of take-offs and landings done in one hour. This is a definite long-term direction for MCIAA. In terms of runway capacity, we are still at a little less than half,” Villarete said.

A second runway would be needed when use of the existing runway reaches 80 percent, he added. Construction of a new runway is estimated to last five years.

“It takes time to develop a new runway. We just hope that they will give it the same priority,” he said.

The airport, situated in Lapu-Lapu City, introduced new direct flights to Los Angeles, Taipei, Xiamen and Dubai. Villarete said he also expects Qatar Airways to resume its services in October or, at latest, in March next year.

The MCIAA has also been in talks with Etihad Airways and Oman Air since 2013 for other possible direct flights to the Middle East.

Still more airlines are expected to come in with the completion of MCIA’s second terminal in 2018, as well as with MCIAA and GMR Megawide Cebu Airport Corp.’s (GMCAC) successful run at the recently concluded Routes Asia 2016.

“I believe our PPP endeavor was of great help. The very transparent transaction and the expected boost of capacity when T-2 will be completed in 2018 placed

Mactan in the airlines’ radar. We will have very exciting times ahead,” Villarete said.

For the next three years, MCIAA will also repaving the runway and service roads as well as develop a better lighting system for the taxiway.

The airport authority is also looking into replacing the six-kilometer stretch of security fence surrounding most of the airport’s airfield.

Villarete said they are also considering installing closed-circuit television (CCTV) cameras along the fence to improve security.

“We’ve heightened alert levels after Brussels, but it just so happened also that we are already at heightened security level because of Holy Week,” he said.

He assured that MCIA remains safe.

Source: Vanessa Clair Lucero,

Mactan-Cebu International Airport: GMR-Megawide Formally Takes Over Operations

The new design of Mactan-Cebu International Airport
The new design of Mactan-Cebu International Airport

HYDERABAD: GMR-Megawide consortium is set to takeover operations of Mactan-Cebu International Airport in the Philippines from midnight tonight, a senior official of the
Indian infra major said.

“The operations will be handed over to the consortium from tonight. Some of the existing employees of the airport will be working with us,” the official told PTI.

The USD 700 million-project to develop and operate the Mactan-Cebu International Airport in the Philippines. Megawide is a Philippines-based construction company. As part of the agreement, the consortium will have to develop a new terminal within three years from the taking over operations of the airports, the official said, adding that the construction of
new passenger terminal would involve an investment outlay of nearly USD 380 million.

In the bidding, conducted in November last year, the GMR-Megawide Consortium proposed to undertake the project, which entails renovating the existing passenger terminal building (PTB), building a new one to service international flights, and operating the airport.

The existing terminal was designed to handle approximately 4.5 million passengers, but it currently handles roughly 7.1 million. The expansion of the terminal is expected to raise the annual passenger capacity of the airport to 12.5 million.

The concession agreement involves upfront payment premium of 14.4 billion Peso (over USD 320 million) and the concessionaire has already paid, the GMR official said.

Earlier, a DOTC spokesperson in a release had said that the 25-year concession was awarded to GMR-Megawide following several months of reviewing various legal questions raised by a bidder in connection with the Airport project.

After losing Male Airport operations and selling off its stake in Sabiha Gokcen International Airport (ISGIA) at Istanbul, Turkey, MCIA is the only overseas airport that is currently under the GMR group. The group manages international airports at New Delhi and Hyderabad.

With regard to the user development fee at the airport, the official said all those amounts are pre-determined by the airport authority and the consortium has no role in it.

GMR Chairman G M Rao and other senior executives of the Group recently met Philippines President Benigno S Aquino III in Manila.

Source: The Economic Times


GMR-Megawide looking forward to more airport bids

CEBU CITY — Listed builder Megawide Construction Corp. and its partner, Bangalore-based airport operator GMR Infrastructure Ltd., are planning to put in bids for six airport projects, a company official said, as the government studies plans to bundle the projects into a single public-private partnership (PPP) contract.

Two of the six airport projects, the P2.34-billion New Bohol (Panglao) Airport and the P15.92-billion Laguindingan Airport in Cagayan de Oro City, have been approved by the National Economic and Development Authority (NEDA) Board.

The four others — Iloilo, Davao, Bacolod and Puerto Princesa — have yet to be approved by the NEDA Board, PPP Center Executive Director Cosette V. Canilao said in an e-mail to BusinessWorld. Project costs have also to be finalized.

There is “no definite decision on the bundling of airports yet,” Ms. Canilao said.

Manuel Louie B. Ferrer, president of GMR-Megawide Cebu Airport Corp. (GMCAC), said “it makes sense” for the partnership to bid for the other airport deals because it bagged the first airport PPP contract.

The 25-year PPP contract for the operation and maintenance of the Mactan Cebu International Airport terminal, with an estimated cost of P17.52 billion, was awarded to GMR-Megawide last April despite a protest made by second highest bidder Filinvest-Changi consortium and the filing before the Supreme Court by Sen. Sergio R. Osmeña III of a petition to nullify the contract.

“We have operations already in Cebu and most of the airports are based in the Visayas. So it makes sense that we should participate [in the bidding],” Mr. Ferrer said in an interview on the sidelines of the launch of the new Mactan Cebu International Airport brand last week.

He said GMR would still be the technical partner for any airport-related ventures.

“We have a strong partnership and we believe in how they operate an airport,” he added.

GMR-Megawide, which is 60% owned by Megawide and 40% owned by GMR, is set to take over and start rehabilitating the Mactan Cebu airport terminal on Nov. 1. Construction of a second terminal will start in January.

Mr. Ferrer said a consortium of financial institutions led by BDO Unibank has committed to finance the P17.52-billion project. Financial close is targeted between the end of October and mid-November.

Expansion of the terminal will raise the airport’s annual passenger carrying capacity to 12.5 million. The existing terminal was designed for 4.5 million passengers, but currently serves 7.1 million.

Mr. Ferrer, who is also chief marketing officer of Megawide, said the construction company is also interested in other PPP projects that the government has lined up.

“We’d like to grow our airports. We’d also like to grow our hospital business. The other interesting projects would be water, prison facilities and the ITS (Integrated Transport System) — everything that has construction which is our core strength,” Mr. Ferrer said.

Megawide earlier bagged the PPP contracts for the modernization of the Philippine Orthopedic Center and the School Infrastructure Project. — Marites S. Villamor

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. –