DOTC, GMR-Megawide sign deal for Mactan airport project

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Tuesday, April 22, 2014


CEBU - The Department of Transportation and Communication (DOTC) and the GMR-Megawide consortium signed Tuesday a concession agreement for the privatization the Mactan Cebu International Airport (MCIA) passenger terminal.

During the signing in Manila, Undersecretary Jose Perpetuo Lotilla represented the Department of Transportation and Communications (DOTC), Chrinivas Bommidala for GMR Infrastructure Ltd. of India and Michael Cosiquien signed on behalf of Megawide Construction Corp.

The agreement signing came after the consortium complied with post-award requirements, including the payment of P14.4 billion to the DOTC.

The consortium of GMR-Megawide won the contract to upgrade the MCIA terminal. The contract allows the private corporation to operate and maintain the MCIA terminals for 25 years.

DOTC-GMR-Megawide
PACT. Undersecretary Jose Perpetuo Lotilla (sixth from right) represents the Department of Transportation and Communications in the signing of the concession agreement with the consortium of GMR, represented by chairman Srinivas Bommidala (fifth from left), and Megawide, represented by its chairman Michael Cosiquien (fifth from right), over the privatization of the Mactan Cebu International Airport. MCIA General Manager Nigel Paul Villarete (third from right) serves as one of the witnesses during the signing. (Contributed photo)


Louie Ferrer, Megawide vice president for corporate communications, told Sun.Star Cebu that the concession agreement provides that the consortium will take over the operation and maintenance of the MCIA terminal in October.

“We are now preparing all the designs to transform the airport into a world-class place and we are inviting independent consultants of DOTC to inspect our design and monitor the construction,” Ferrer said.

The GMR-Megawide consortium said the design of the new terminal will be based on the Cebuano culture.

“This is just the first step in our endeavor to transform the Mactan Cebu International Airport into a world-class airport destination. We will channel our efforts to making MCIA an efficient passenger-oriented and commercially sustainable airport that … will make a significant contribution to the economy of Cebu,” read a press statement from GMR-Megawide.

The MCIA modernization project will include the construction of 33 additional aircraft parking stands, 149 additional check-in counters and an adjoining airport village mall.

The consortium, in the statement, thanked the DOTC for “conducting a fair and transparent bid process.”

GMR-Megawide came out with the highest bid of P14.4 billion for the MCIA project, besting six other bidders. But the awarding of the project did not take place as scheduled last January after Filinvest Land Inc., the second highest bidder, accused GMR-Megawide of violating the conflict of interest rule.

While DOTC looked into the issues raised by Filinvest, the Senate conducted an inquiry in aid of legislation on the procedures used by the DOTC in evaluating the winning bidder of the airport project.

On April 4, the DOTC awarded the project to GMR-Megawide but Senator Sergio Osmeña III filed a petition before the Supreme Court seeking to stop the awarding of the project to the consortium. (Sun.Star Cebu)

Published in the Sun.Star Cebu newspaper on April 23, 2014.

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