Megawide-GMR takes over NAIA rehab project after rival consortium drops out
MANILA, Philippines — Megawide Construction Corp. and its Indian partner, GMR, announced Friday they will now take over the rehabilitation of the aging Ninoy Aquino International Airport (NAIA), just days after talks between the government and the duo's rival "super consortium" collapsed amid concerns over the project's viability.
The tandem — which bagged contracts in the past to upgrade international airports in Cebu and Clark, Pampanga — received on July 15 the original proponent status (OPS) previously given to the six-member consortium, Megawide told the stock exchange.
Megawide made the announcement four minutes before the market closed. On Friday, shares in the listed builder fell 0.41% to cap the week at P7.24 apiece.
With the OPS, the two now have the right to match the offers given by other groups via a Swiss challenge, giving them an advantage against potential challengers.
Last week, the government ended talks with the NAIA super consortium and revoked the group's OPS. The consortium comprised of Aboitiz InfraCapital, AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Gotianun-owned Filinvest Development Corp. and Gokongwei-led JG Summit Holdings Inc.
The termination of negotiations came after authorities rejected the consortium's proposed revisions to their P102-billion plan meant to ensure the project will remain viable despite the "lasting" impact of the coronavirus pandemic.
The consortium said they had no choice but to drop their offer because they can only move forward with the rehabilitation project under the proposed tweaks to their plan. The band of six conglomerates had hoped to transform NAIA into a regional hub like Singapore’s Changi Airport, primarily by increasing its passenger capacity.
For his part, Finance Secretary Carlos Dominguez III last week said the government was "not worried" about the NAIA consortium's decision as there are two potential proponents — whom he refused to name at the time — that "are very willing to step into the shoes of the consortium."
"Apparently, these two other proponents are willing to get into an agreement with the government which are very similar to the terms of the agreement between the project proponents in the Clark Airport," the finance chief said. "We're not worried about it. We believe these other two proponents are willing to step up to the plate here."
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