Mactan-Cebu airport needs P17 billion, 20 years

CEBU CITY - It will take P17.5 billion, spread over 20 years, to build a new terminal and further improve Mactan airport, an official said.

Mactan Cebu International Airport Authority (MCIAA) General Manager Nigel Paul Villarete said the entire project, which is now being set for bidding by the Department of Transportation and Communication (DOTC), will take two phases.

Phase 1 will cost about P8.8 billion and after 10 years, Phase 2 shall be executed for an estimated cost of P8.6 billion.

The first phase includes the construction of a passenger terminal, renovation of the existing terminal, new apron, and related works. Phase 2 is the expansion of the two terminals and apron.

For both phases of the public-private partnership (PPP), a facility operator will also run and maintain both terminals.

Some of the biggest names in Philippine business are interested in bidding for the project, including a consortium formed by Aboitiz Equity Ventures and Ayala Corp., as well as Manuel Pangilinan’s Metro Pacific Investment Corp. and San Miguel Corp.

Last Friday, the Department of Transportation and Communication (DOTC) announced it had revised the bid criteria and will now allow airline companies to have a limited stake in the entities that will qualify to bid for the Mactan airport project.

Airline companies may own up to 33 percent of the shares in the Special Purpose Company that will be given the concession, but Transportation Secretary Joseph Emilio Abaya said no airline should be directly involved in airport operations, to prevent conflict of interest.

Villarete clarified that the winning bidder or concessionaire will control the landside operations (Terminal 1 and Terminal 2), while the MCIAA will retain control of the airside such as the airfield, runway, taxiways, and policy and regulatory functions.

Only the management of services is privatized under the contract, and the concessionaire is mandated to follow policy directions set by MCIAA.
There will be a reorganization of the MCIAA personnel in accordance with the law, Villarete confirmed.

But he also said that once MCIAA and the winning concessionaire sign the contract, all the personnel will be turned over to them, no longer as government personnel but as private staff.

“We are requiring the winning concessionaire to absorb (the existing airport) personnel for six months,” Villarete said.

After that, those who opt to stay with MCIAA may be subject to a reorganization that will be determined by the Department of Budget and Management, subject to Civil Service rules.

In all cases, Villarete said, all personnel movements shall be in accordance with laws and government guidelines.

“We will endeavor to secure the best and maximum benefits for everybody,” Villarete said.

In a previous interview, Villarete has said that if everything goes smoothly, the PPP project will be awarded to the winning concessionaire by the end of October this year.

Last December 21, the PPP Center in Manila met its 2012 target when the DOTC opened the bid for eight big projects, including Mactan-Cebu International Airport Terminal Building 2.

In a briefing, PPP Center Executive Director Cosette V. Canilao has said that they were pleased with the outcome and the game plan was to focus on structuring these projects.

Mactan airport was opened to regular international flights on December 18, 1990. (EOB/Sun.Star Cebu)