T2 of Mactan Cebu Int’l Airport Update

 Mactan-Cebu International Airport (MCIA) Terminal 2 is on track for delivery by June 2018 according to GMR-Megawide Cebu Airport Corporation (GMCAC) executive adviser, Andrew Harrison.
Image Source: cebudailynews.inquirer.net
GMCAC is investing some P32 billion for the first phase of development of Terminal 2. This includes the completion of concrete works for the civil structure of the new terminal building is scheduled by the end of this year. GMCAC will finalize awards for major suppliers for equipment and services relating to electro-mechanical works by the end of 2016.


Terminal 2 is approximately 45,000 square meters and can be expanded further in the second phase. The new terminal will serve all international flights with eight aerobridge-equipped aircraft parking stands and will be connected by a link-bridge to Terminal 1, which will be refurbished for domestic use.

Architectural features of Terminal 2 blends modern building materials and Cebuano culture and heritage, said GMCAC.

Image Source: cebudailynews.inquirer.net

The new terminal building will also feature 48 check-in counters that are expandable to 72. It will include modular expansion capability to ensure operations can continue uninterrupted whilst expansion takes place as traffic growth warrants.

It will also have a car park that can accommodate 550 cars, which is expandable to 750 cars.

In terms of employment generation, GMCAC said more than 3,000 jobs are created during the construction of Terminal 2, with another 550 employment opportunities through concessionaires once Terminal 2 is commissioned.

Once Terminal 2 is completed, the combined annual passengers that will use the airport is projected to rise to 12.5 million from 4.5 million passengers a year.

“The MCIA is envisioned to become the world’s friendliest airport gateway that demonstrates the warmth and hospitality of the Cebuano people. It will be an airport that will make guests feel that their resort experience has started the moment they set foot in here,” the company said.

Source: Katlene O. Cacho, http://www.sunstar.com.ph

Mactan-Cebu International Airport Launches New Routes


GMR Megawide Cebu Airport Corp. (GMCAC) announces the launch of two more international destinations out of Mactan-Cebu International Airport (MCIA).

Xiamen Airlines of China is launching a route between Cebu and Xiamen of Fujian province in China on March 28, 2016.

The flight departs Xiamen at 9am on Mondays, Wednesdays and Saturdays, arrives in Cebu at 11:55 am, and return to Xiamen one hour later. This is three times a week. It will  the 170-seat capacity Boeing 737.

Xiamen Air has previously opened international routes to Southeast Asian countries including Malaysia, Singapore, Indonesia, Thailand, Cambodia and the Philippines.


Taiwan-based EVA Airways will inaugurate this March 27 the daily Cebu-Taipei-Cebu flight. It departs Taipei at 7:10 am and arrives in Cebu at 10:05 am. It leaves Cebu on the same day at 11:05am and arrives in Taipei at 2:00pm using an Airbus 321. This is EVA Air’s second Philippine destination after flying Manila daily.

“It’s a very exciting time for MCIA- we’re growing our capabilities as a gateway to one of the country’s most competitive regions,” said GMCAC President Louie Ferrer.

Before the month ends, GMCAC will be launching a Cebu-Dubai flight through Emirates.


Mactan-Cebu International Airport: Alternative Gateway

CEBU, Philippines – The consortium that now operates the Mactan-Cebu International Airport Administration (MCIAA) says Cebu could become an alternative gateway for both domestic and international flights.

The US$326 million (P15.61 billion) Mactan-Cebu International Airport expansion and management project will help ease air traffic congestion in Manila according to Andrew Acquaah-Harrison, chief executive of GMR-Megawide consortium.

Harrison also said they expect passenger traffic to increase to 8.9 million by 2018, “Right now, we have 220 daily flights but we expect the volume to increase to 350 by 2018 when the Terminal 2 building is completed.”

At present, Cebu has an annual passenger volume of 4.7 million. The country’s main gateway, Ninoy Aquino International Airport in Manila currently struggles to handle more than 700 flights a day, making it one of Asia’s busiest airports.

IN PROGRESS. Artists' rendition of the planned terminal 2 addition to Mactan-Cebu International Airport.
In Terminal 2, the consortium chose an architectural design that will welcome passengers to the general ambiance of a resort. This supports the overall concept of Cebu as a premier tourism destination in the Philippines.

Resort Airport

There have been small alterations done, but have resulted in significant changes. For example, the arrival gate was moved to a bigger area formerly used as the entrance of airport personnel. The really long queues at the former entrance have all but disappeared.

The check-in area is currently undergoing a facelift, with more counters and wider spaces. This also aids in eliminating passenger congestion, and is a perfect example of how space is managed so that passengers are able to move more conveniently inside the departure area.

Pic: Edwin Espejo.
Self-service check-in kiosks have been newly installed. (Image Source: Edwin Espejo)

Also being tested were the electronic entry gates that could read electronic boarding passes. This, together with the self-service check-in kiosks, brings the standard of operations at the Mactan Terminal 1 departure area to far superior levels than any of the Ninoy Aquino International Airport terminals.

Huge LED display panels that announce airplane arrival and departure status are visible at strategic locations of the airport, and provide useful and timely information to passengers.

But changes are not just cosmetic. The back room operations and equipment are being improved. A luggage carousel that had not been functioning for five years is currently under repair, and its subsequent operations will help tremendously in moving passenger cargo.

Airport terminal staff, not just those greeting and facilitating people movement at the check-in counters, and the pre-departure and arrival areas, but also those responsible for luggage, are being empowered to enhance passenger services.

GMR-Megawide Cebu Airport Corporation (GMCAC) – which is 60% owned by listed Filipino construction company Megawide Construction Corporation and 40% by Bangalore-based GMR Infrastructure Limited – signed in April last year a 25-year concession agreement to manage and upgrade Mactan airport.

FIRST CLASS. The recently installed new premier lounge at Mactan-Cebu International Airport.
The airport had a “soft opening” of a new premier lounge that resemble 5-star hotels.

Further improvements should be in place by 2018.

In addition, the Filipino-Indian consortium also transferred the taxi terminals allowing passengers to pick up their cabs right outside the arrival area.

CONVENIENCE. Passengers can now board a bus from the arrival area to SM Cebu for P25.
Buses are now available with a drop off point at SM Cebu for only Php.25 (US.25).

All these improvements, GMR Megawide said, were introduced at no cost to the passengers. “We want to make Cebu not only a destination but a gateway to both the Philippines and the rest of the world,” Harrison added.

He said the immediate goal is to make Mactan airport a resort airport. “Tourism starts at the airport. Tourists should feel that they are here at the moment they touch down,” the 48-year-old executive said at a dinner for a handful of reporters at the posh Plantation Bay resort.

Cebu first gained international prominence when it was promoted as an “Island in the Pacific” in the 1970s.

Back then, the bulk of tourists then were Japanese. Today, tourists are more multi-national with Koreans being the top arrivals in Cebu.

More Flights, OFWs

GMR-Megawide said it also plans to tap into the huge overseas Filipino worker (OFW) market. Although 34% of international passengers are OFWs, less than 5 % use Cebu as exit point. Harrison added that GMR-Megawide is investing in a 120-capacity dormitory for increased OFWs departing from Cebu.

SECOND STRATEGIC DESTINATION. Emirates will launch a daily Dubai-Cebu-Clark circular service on Wednesday, March 30, 2016. Image from Emirates
Earlier this year, Emirates Airlines announced its new daily CEB-CRK-DXB route.

The consortium is also trying to lure back Cathay Airways, which previously suspended Cebu flights.

“We have come up with a routes development plan and are sending teams to make pitches to the airlines that Cebu could be a viable and profitable alternative gateway,” he said, that the airport will soon open direct Philippine Airline flights to San Francisco, Osaka in Japan and Dubai.

New Terminal, New Runway

GMR-Megawide consortium outbid 6 others in cornering the management of MCIAA. The multi-billion peso project includes a second terminal building adjacent to the existing one.

With construction already under way, GMR-Megawide expects the Terminal 2 building to be completed in 30 months.

Harrison said that the Department of Transportation and Communications (DOTC) is already planning to build an additional runway to meet the growing passenger and air traffic in Cebu.

Harrison pointed out however that this is unlikely to be completed before 2022.

“I have no idea when the government will do it. But yes, we later will need another runway if we reach our targets,” he said.

Source: Edwin Espejo, Rappler.com


Mactan-Cebu International Airport Upgrades for APEC

AIRPORT passengers will continue to see more improvements at Mactan-Cebu International Airport (MCIA) this month, as its private operator promises more state-of-the-art amenities to enhance their airport experience.

The installation of these new features will be completed in time for Cebu’s hosting of the Asia Pacific Economic Cooperation (APEC) Summit in August.

GMR-Megawide Cebu Airport Inc. (GMCAC) chief executive advisor Andrew Harrison told reporters yesterday that the airport is completely ready for the APEC Summit.

“In terms of our readiness, the Apec National Organizing Committee is happy with the changes they are seeing at the airport. They did not ask for anything other than the APEC Lounge,” said Harrison.

A new feature recently installed is the common self-service check-in kiosk, which was added to reduce queuing at the check-in counters. The new system will initially cater to passengers of Cebu Pacific and Cathay Airlines starting today.

A flight information display will be installed next month to allow passengers to check the status of their flights. Passengers, according to Harrison, may also view the flight information using their smartphones through the airport’s website.

By August, GMCAC will install VeriPax, a device that verifies flight and boarding pass information to optimize passenger flow at the airport. The device can also read mobile boarding passes of passengers. They will also install a baggage reconciliation system to reduce offload time and mishandled bags through tracking.

To further address congestion, the private operator will convert the VIP Lounge into a gate lounge in a month’s time. Harrison said this will increase seating capacity to 20 percent.

Meanwhile, washroom refurbishment and expansion will be completed between August and October this year.

“In the coming months, passengers will have a completely different experience at the airport,” he said.

GMCAC has also built an airport medical center which has four beds and an ambulance. The new clinic operates 24 hours daily.

In the coming weeks, Harrison also disclosed that there will be new tenants at the airport. “We are looking at eight to nine new categories for retail,” he said.

As for the development of Terminal 2, Harrison said that the 10-month delay of the construction has been reduced to six months, after concerned parties reached an interim solution.

He reported that they have started the excavation works for certain areas early this week. “We are still hoping to reduce the delay to a more reasonable period,” said Harrison.

Terminal 2’s completion is slated for the summer of 2018. The airport’s expansion may require capital spending between P17 billion and P22 billion.

Terminal 2 is seen to increase the total capacity of MCIA from 4.5 million to 12.5 million passengers.

DOT 7 Director Rowena Montecillo welcomes the new development at the airport saying, that the upgrade is sure to encourage more tourists to come to Cebu.

“The DOT would like to congratulate GMCAC for the improvements in the arrival and departure areas of MCIA. Recognizing the capacity challenges for the current terminal, GMCAC found a way to create more space to give comfort and convenience to the travelers. (Today), our airport will introduce the kiosk where the passengers can do self check-in, another first in the country. We look forward to more innovations from GMCAC to improve the existing terminal before we finally have a new terminal,” said Montecillo.

Source: Katlene O. Cacho, http://www.sunstar.com.ph

Airport Operators in 7 Countries Vie for P17.5-B Mactan-Cebu Project


Manila, Philippines – Operators of international airports in the United States, France, Switzerland, Malaysia, Singapore, South Korea, and India will vie for the first airport project being auctioned off under the Aquino Administration’s public-private partnership (PPP) scheme.

Today’s opening of bids for the P17.5-billion Mactan-Cebu International Airport (MCIA) Development Project will serve as an “acid test” on the Philippine government’s PPP projects that the world will keep an eye on, according to the Department of Transportation and Communications (DOTC).

Operators of the Houston Airports System in the US, Aéroports de Lyon in France, Changi Airport Saudi Ltd. in Singapore, Incheon International Airport in South Korea, Malaysia Airports Berhad in Malaysia, Zurich Airport in Switzerland, and Indira Gandhi International Airport in India have teamed up with local and foreign entities in a bid to bag the transportation infrastructure project.

The international airports operators have joined the seven pre-qualified bidders, which include Metro Pacific Investments Corp. (MPIC)-JG Summit Holdings Inc. Airport Consortium; AAA Airport Partners; Filivest Land Inc.-Changi Airports International (CAI) Consortium; San Miguel Corp. (SMC) and Incheon Airport Consortium; First Philippine Airports Consortium; Premier Airport Group; and GMR Infrastructure Limited-Megawide Consortium.

“We know that the world is watching.  This is the acid test for our PPP program.  The higher the turnout, the more credibility it will mean for our projects,” said DOTC spokesperson Michael Arthur Sagcal.

The National Economic Development Authority (NEDA) Board earlier approved several changes in the original concession agreement to entice more competitive bids from the bidders. The changes include the lengthening of the concession period from 20 to 25 years, the transfer of operation and maintenance of aprons from the grantors to the concessionaire, including the right to derive income from their operations, and the flexibility of the implementation of capacity augmentation.

The government has also agreed to share in the concessionaire’s liability in paying the facility’s real property tax and to increase the period for prohibiting competing airports from 10 years or when the passenger traffic at MCIA reaches 15 million passengers per annum, whichever is later, to 25 years.

The P17.5-billion project involves the construction of a new world-class international passenger terminal building in MCIA, with a capacity of about 8 million passengers per year; renovation and expansion of the existing terminal; installation of all the required equipment; and the operation of both new and existing facilities.

When the new international terminal building is completed, the existing terminal, which currently caters to both domestic and international passengers, will be converted into an exclusively-domestic passenger terminal for the concession period.

Source: Kris Bayos, The Manila Bulletin

Bidding for P17.5-billion Mactan Airport Project Expected in Q4

Source: Lenie Lectura, Business Mirror


THE bidding process for the P17.5-billion rehabilitation and expansion of the Mactan-Cebu International Airport is expected to take off in the fourth quarter of the year.

Transportation Secretary Joseph Emilio Abaya, in a text message, said bidders are requesting for a time lag of 45 to 75 days before they submit their bid proposals as the concession agreement (CA) was issued only over the weekend.

“The CA has been issued but the bidders are requesting that they be given time to study the CA. The BAC [Bids and Awards Committee] has yet to decide though,” Abaya said.

Under the rules, once the CA is issued the bidders have at least 30 days to study it before they formally make a bid. Abaya said it is mandatory for the government to give at least 30 days after issuance of the final CA before the bidding date is set.

The submission and opening of bid proposals from the seven prequalified bidders were supposed to take place on August 28.

The prequalified bidders include AAA Airport Partners, a partnership between Ayala Corp. and Aboitiz Equity Ventures; Filinvest-CAI Consortium of the Gotianuns and Singapore’s Changi Airport; First Philippine Airports of the Lopez group and New Zealand’s Infratil Asia Ltd. airport operator; GMR Infrastructure and Megawide Consortium, which includes India’s Delhi Airport operator; MPIC-JGS Airport Consortium, composed of the Pangilinan and Gokongwei companies, as well as Aeroports de Lyon of France; SM-led Premier Airport Group, which includes Switzerland’s Zurich Airport operators; and San Miguel-Incheon Airport Consortium, led by the SMC conglomerate and the operator of South Korea’s Incheon Airport.

The airport project will modernize the country’s second-largest aviation hub and the gateway to the Visayas with the construction of a new world-class international passenger terminal building with 8-million annual passenger capacity.

It will also renovate the existing terminal building, which has been operating at over-capacity with 6.7 million passengers going through the 4.5-million passenger capacity structure in 2012.

Bidding for Mactan-Cebu International Airport Deferred





Unresolved commercial issues have prompted the government to defer the Aug. 28 bidding for its first airport public private partnership (PPP) deal—the Mactan-Cebu International Airport—as it seeks to avoid a repeat of the poor reception seen during the bidding for the Light Rail Transit Line-1 extension, government officials and Inquirer sources said on Tuesday.

The government is finalizing the key concession agreement to take into account recent one-on-one sessions with seven prequalified bidders and a draft could be ready this Friday, PPP Center executive director Cosette Canilao told the INQUIRER.

The P17.5-billion rehabilitation, expansion and operation project includes the construction of a new world-class international passenger terminal building that can handle eight million passengers a year, double the Mactan-Cebu airport’s current capacity.

Transportation Secretary Joseph Abaya said separately that the government would give the private sector at least 30 days to prepare once the concession agreement has been issued, which could place the bid openings around the end of September.

However, Canilao said some of the bidders had requested more time, from 45 days to 75 days. She noted that the DoTC, which is implementing the project, would decide on the final date.

“There were varied concerns and clarifications from different bidders on the technical and financial aspects,” Canilao said.

Among these, she noted, were minimum performance and specification standards as well as commercial issues like Duty Free operations, local government unit actions and real property taxes.

Three bidders interviewed by the INQUIRER, but on condition of anonymity as they were not authorized to discuss strategies with the media, said the delay was caused by the lack of clarity on several commercial issues.

They said the technical aspects have “mostly been answered.”

Other bidders sought clarification on the operations of the Duty Free store, a potentially significant revenue source, as well as restrictions on developing property within the airport complex.

Duty Free stores in the countries are operated by the Department of Tourism, based on Republic Act 9593.