‘DOTC failed to address conflict issues’

ONE of the losing bidders of the P17.5-billion Mactan Cebu International Airport (MCIA) development and management project claimed that the Department of Transportation and Communication (DOTC) failed to address the issues of conflict of interest raised against the winning bidder.

In a statement, Joseph Yap of the Filinvest Development Corp. and Changi Airport Inc. (CAI) consortium said they were disappointed that the DOTC pre-qualification, bids and awards committee (PBAC) dismissed the issues they have raised during the pre-qualification review of the MCIA project.

In a letter to the Department of Transportation and Communications (DOTC) dated Jan. 2, the Filinvest-Changi consortium questioned the participation of winning bidder GMR-Megawide Consortium and another bidder, First Philippine Airports Consortium.

Conflict of interest

The GMR-Megawide Consortium is composed of India’s GMR Infrastructure Ltd. and locally listed Megawide Construction Corp, while First Philippine Airports Consortium includes Malaysia Airports Holdings Berhad (MAHB).

GMR and Malaysia Airports are partners in an airport project outside the Philippines.

Filinvest-Changi consortium claims that GMR and MAHB have been partners in all of the Indian company’s airport affiliates, which constitutes a violation of conflict of interest as provided in Article 5.6 of the DOTC bidding rules.

The managing director of MAHB sits as a director in all four GMR airports, namely, Delhi International Airport Private Ltd, GMR Hyderabad International Airport Ltd., Istanbul Sabiha Gokcen International Airport Group and GMR Male International Airport in Maldives.

“We believe that the conflict of interest issue and the other matters raised are valid, relevant and substantive to the bidding process and rules,” Yap said.

“Our primary concern is raising these issues has always been to ensure adherence to the bidding process and rules in order to produce the right outcome for the Philippines. This helps guarantee that the Mactan Cebu International Airport will truly become a world-class airport,” he adds.


Sun.Star Cebu tried to get the comment of MCIA General Manager Nigel Paul Villarete but he has declined to take calls since Friday.

Just a day before the bidding last Friday, Sen.Serge Osmeña III had asked the Supreme Court to stop DOTC and MCIAA from issuing a notice of award and a concession agreement to GMR-Megawide.

Like the Filinvest-Changi consortium, Osmeña disagreed with DOTC’s decision to consider GMR-Megawide as a qualified bidder.


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