‘Despite protest, airport deals should continue’-A A +A
Thursday, August 29, 2013
THE Public-Private Partnership Center of the Department of Transportation and Communication (DOTC) should not be distracted by the case filed by a Mandaluyong City resident unless there is a Temporary Restraining Order (TRO) issued by the court.
Mactan Cebu International Airport Authority (MCIAA) General Manager Nigel Paul Villlarete made the statement to dispel public doubts that the privatization of Mactan airport operations will not push through because of the case.
Villarete clarified that the public bidding for Mactan airport operations privatization that was scheduled yesterday did not push through because a concession agreement must be finalized first by the pre-qualified bidders.
Once it is finalized, Villarete said the Pre-Bidding and Awards Committee (PBAC) chaired by DOTC Undersecretary Jose Perpetuo Lotilla will set the bidding within the 45- to 75-day period after the submission of the concession agreement.
“For example, the pre-qualified bidders will all submit their final draft concession agreement to PBAC by Friday (Aug. 30), the count on the period from 45 to 75 days will start on that day,” Villarete said.
“It is but prudent to provide them (pre-qualified bidders) enough time to submit a well and thoroughly prepared bid,” Villatete said.
Cebu Gov. Hilario Davide III, meanwhile, said suspension of the bidding process for the airport expansion will muddle the project’s timetable.
“I understang the bidding will be September man tingali or October. Now, with the suspension malangan na ang bidding,” he said.
Critics earlier lambasted the reported “jacking up” of the airport expansion project amount, from P5 billion to P17.5 billion.
Businessman Bobby Lim Joseph during the weekly 888 News Forum pointed out that the
Korean International Cooperation Agency (Koica), which was hired to conduct the feasibility study on the airport expansion and rehabilitation project, came up with only P5 billion as the expansion cost.
“Para nako no, it’s a huge project. It involves expanding the terminal. Posible ang runway maapil ana. Dala kaayo. It would require a huge budget,” Davide said.
In 2011 the Koica prepared a master plan for the Mactan airport that includes a new passenger terminal building.
In November 2011, Koica presented a US$180.7 million passenger terminal building, which comprised US$134.6 million for the first phase and US$ 46.1 million for the second phase. At P44.7 to a US dollar, the total estimated amount of the project was P8.08 billion.
Villarete, in the Aug. 6, 2013 Sun.Star Cebu report, reacted to Joseph’s statement, saying Koica’s October 2011 final report revealed that the Phase 1 of expansion project is P9.405 billion and Phase 2 is P10.1 billion.
He said the transaction adviser procured by DOTC and the PPP Center, top consulting firms like the Deloitte Touche Tohmatsu India Pvt Ltd. (India) and its consortium partner Puyat Jacinto and Santos Law (Philippines) scaled the amount down to P17.5 billion. It has a smaller unit cost than the Bacolod and Iloilo airport terminals.
Meanwhile, Villarete said the MCIAA is now requesting the Government Commission for GOCC (Government-Owned and Controlled Corp.) to replace businessmen Francis Monera and Roger Lim who resigned from the MCIAA Board.
When the MCIAA charter was implemented in 1991, the law provides that there must be four private sector representatives to the MCIAA board to be recommended by the
governor of Cebu. The governor himself is an automatic member of the MCIAA board.
Only Engr. Pericles Dakay and businesswoman Melanie Ng are now officially connected with the MCIAA board, after Monera and Lim resigned a few months ago.
Villarete explained that although the recommendation of the Cebu governor is still needed, the GCG (Government Commission on GOCC) is mandated to process the private sector representations based on the GOCC law that amend some provisions of the MCIAA charter.
Published in the Sun.Star Cebu newspaper on August 29, 2013.