Megawide-GMR consortium released its design for the Mactan-Cebu International Airport. Courtesy of Megawide-GMR Facebook page
MANILA, Philippines (UPDATE) - The Megawide-GMR consortium on Tuesday signed the concession agreement for the Mactan-Cebu International Airport project with the Department of Transportation and Communications (DOTC).
The winning consortium of Megawide and India's GMR will take over the country's second busiest airport starting October 2014.
The 25-year concession agreement was signed after Megawide-GMR fulfilled all the post-award requirements.
Megawide chairman and chief executive officer Machael Cosiquien said the consortium actually paid P16.1 billion to the Mactan Cebu International Airport Authority (MCIAA), which included the P14.4 billion premium payment and P1.7 billion value added tax (VAT).
He said the Megawide-GMR consortium contributed 30% of the payment, while BDO Unibank extended a loan to finance the 70%.
MCIAA will turn over the operations and maintenance of the airport to GMR-Megawide within the next six months or by October 2014.
Cosiquien said the company is spending P17.5 billion for the construction of the new passenger terminal building, which will start by January or February 2015.
The DOTC expects Megawide-GMR to complete it within three years or by January 2018.
The new terminal will be dedicated to international flights and will be connected to the existing terminal building.
The consortium had earlier unveiled its plans for the Mactan-Cebu airport terminal, saying it will be the world's first resort-airport.
The existing passenger terminal building will be renovated and completed by January 2019, when it will begin to serve as the domestic terminal.
Cosiquien said the joint venture is also mulling the possibility of developing another six-hectare property within the Mactan-Cebu airport into a mixed-use commercial area that would have a hotel and shopping mall.
He said they are also talking with several international lenders, including the World Bank (WB) and the Asian Development Bank (ADB), to finance the PPP project.
The DOTC said the project’s contract signing followed the expiration of the 15-day period to file any motion for reconsideration contesting the award, with no bidder having filed such a motion. The DOTC said it has not received any temporary restraining order (TRO) from the Supreme Court (SC), which would prevent the project from proceeding.
The Megawide-GMR group submitted the highest bid of P14.404 billion for the project last December, followed by the Filinvest-Changi consortium with P13.999 billion.
The awarding of the PPP project had been delayed for several months, as Filinvest had sought the disqualification of the Megawide-GMR consortium for the project.