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Wednesday, April 23, 2014

MEG: GMR-Megawide gets Mactan-Cebu airport concession from DOTC

The Department of Transportation and Communications (DOTC) signed the concession agreement for the Mactan-Cebu International Airport on Tuesday, paving the way for consortium GMR-Megawide to upgrade the second-busiest airport in the Philippines.

The 25-year concession was signed after the consortium fulfilled all post-award requirements that included paying the Mactan-Cebu International Airport Authority (MCIAA) the P 14.4-billion premium GMR-Megawide offered in its financial bid.

“Operations and maintenance (O&M) of the airport will be turned over by MCIAA to GMR-
Megawide within the next six (6) months, which means that the public can expect private sector
efficiency and more customer-oriented services at the airport beginning in October 2014,” the DOTC said in an e-mailed statement.

Part of the deal is for the concessionaire to start building a new passenger terminal building by January 2015 and to complete the project in three years or by January 2018. The new terminal – next to the present passenger terminal – will be dedicated to international flights.

Once the international terminal is complete, GMR-Megawide start the renovation works on the present terminal which is expected to be complete and to start serving domestic passengers in January 2019.

The contract was signed between the Philippine government and GMR-Megawide after a 15-day window for those with complaints against the winning concession to file a motion has lapsed. No bidder filed any motion, according to DOTC.

The department said it also hasn't received any injunction from the Supreme Court to keep the government and GMR-Megawide from signing the concession agreement and fulfilling its terms and conditions.

GMR-Megawide, a partnership between Megawide Construction Corp. and GMR of Bangalore, India, won the Mactan-Cebu International Airport expansion project last Dec. 12 by bidding P14.404 billion for the public-private partnership undertaking.

It bested other investors led by SM Group, Ayala Corp., San Miguel Corp., JG Summit Holdings Inc., and Metro Pacific Investments Corp.

- GMA News

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