P14.4B upfront premium paid for airport project

CEBU, Philippines -  The GMR-Megawide Consortium yesterday paid P14.4 billion to the Mactan-Cebu International Airport Authority as upfront premium for the airport expansion project, which has been awarded to the consortium.

The Department of Transportation and Communications and the MCIAA signed the Concession Agreement with GMR-Megawide following receipt of the payment.

Jose Perpetuo Lotilla, DOTC’s Bids and Awards Committee  chairman and undersecretary for legal affairs, led government officials in signing the agreement.

“The 25-year Concession Agreement was signed following the consortium’s fulfillment of all post-award requirements, including payment to the Mactan-Cebu International Airport Authority of the P14.4-billion premium it offered as its financial bid,” DOTC said in a statement.

The consortium claimed it fulfilled its first major obligation ahead of schedule and reinforces its commitment towards the project.

“By making the upfront payment of P14.4 billion within the stipulated time we have clearly demonstrated our credentials and capabilities to take up this prestigious project. This is just the first step in our endeavor to transform the Mactan Cebu International Airport into a world class airport destination,” said Michael Cosiquien, chairman and chief executive officer of  Megawide Construction Corporation, and Srinivas Bommidala, chairman, Airports Sector of GMR Infrastructure, in a joint statement.

“We will channel our efforts to making MCIA an efficient passenger-oriented and commercially sustainable airport that will truly reflect the culture and heritage of Cebuanos and will make a significant contribution to the economy of Cebu. We wish to place on record our appreciation for DOTC on concluding a fair and transparent bid process, conducted in a highly professional manner,” the statement reads.

MCIAA is set to turn over airport operations and maintenance to GMR-Megawide in the next six months or by October this year.

The consortium is expected to begin construction of the new passenger terminal building by January 2015. Construction is scheduled to be completed in three years or by January 2018.

The new MCIA terminal will be for international flights and will be connected to the existing passenger terminal building, which will also be fully renovated by January 2019. Once renovated, the existing passenger terminal will cater exclusively to domestic passengers.

The signing of the agreement followed the expiration of  the 15-day period to file any motion for reconsideration contesting the award.

In the international bidding process, which culminated in December 2013, GMR-Megawide emerged as the highest bidder for the MCIA project after submitting a bid of  P14.4 billion. DOTC formally issued the Letter of Award to the Consortium on April 4, 2014.

The Consortium’s proposed design for the new terminal at MCIA is a modern expression of traditional Filipino architecture and imbibes the cultural ethos of Cebu without sacrificing efficiency.  (FREEMAN)