Philippine Business News, Manila – The Megawide-GMR consortium has this week signed the concession agreement, for the Mactan-Cebu International Airport project with the Department of Transportation and Communications (DOTC).
The 25-year concession agreement was finalized after Megawide-GMR completed all the post-award requirements, including a payment of P16.1 billion to the Mactan-Cebu International Airport Authority (MCIAA), which included a P14.4 billion premium payment and P1.7 billion in taxes.
Megawide chairman and CEO Michael Cosiquien said that Megawide-GMR had funded 30% of the payment, while a loan from BDO Unibank made up the remaining 70%.
With Megawide-GMR emerging as the winning bidders for the project last December, MCIAA will turn over the operation and maintenance of the airport to the consortium within the next six months, or by October 2014.
Cosiquien said Megawide-GMR will invest P17.5 billion in a new passenger terminal building, construction of which will begin in early 2015, to be completed by January 2018. The existing terminal will remain, as a renovated domestic terminal from January 2019, with the new terminal dedicated to international flights.
The DOTC said the signing of the contract had followed the expiration of the 15-day deadline for any 3rd parties to file a motion for reconsideration, contesting the award. The DOTC said there had been no temporary restraining order issued from the Supreme Court, preventing the project from proceeding.
The Megawide-GMR consortium submitted the highest bid of P14.404 billion for the public-private partnership (PPP) project in December 2013, beating the Filinvest-Changi consortium’s bid of P13.999 billion, into second place.
The awarding of the PPP project had been held up for several months, as Filinvest had attempted to get the Megawide-GMR consortium disqualified from the process.