Megawide, Indian firm submitted highest bid for MCIA project-A A +A
Friday, December 13, 2013
THE consortium of Megawide Construction Corp. and GMR Infrastructure Ltd. submitted the highest bid for the Mactan-Cebu International Airport (MCIA) expansion and upgrading project.
The Department of Transportation and Communications opened the financial bids of the seven bidders for the P17.5-billion project.
MCIA Authority General Manager Nigel Paul Villarete said the opening of the financial bids yesterday was a success.
Villarete said the Megawide-GMR consortium submitted the highest bid of P14.4 billion.
Megawide reported a net income of P71 million in 2009 and P335 million in 2010, according to a disclosure to the Philippine Stock Exchange. GMR is a leading construction firm in India.
Five of the seven qualified bidders offered bids above the P10-billion mark.
The project involves the construction of a new passenger terminal, operation and management of the new airport. It is the first project under the Public-Private Partnership (PPP) program of the Aquino administration.
“The results of the financial bids is a testimony to the government's conduct of the PPP in a thorough, transparent and accountable manner, as well as a demonstration of the very promising viability of the Mactan-Cebu International Airport,” said Villarete in a press statement.
He said that while the bid parameters guaranteed that the government can provide up to P4 billion in cash support as viability gap funding to any prospective bidder, none of the seven bidders asked for it.
Instead, they offered premium payments ranging from P4.7 billion to P14.4 billion, he added.
Villarete said the most important aspect in the process is “not the amount of the bid … but rather the service improvement that comes with” it.
Published in the Sun.Star Cebu newspaper on December 13, 2013.