Gov’t turns over Cebu airport to Megawide-GMR consortium

MANILA, Philippines - The Department of Transportation and Communications (DOTC) turned over during the weekend the operation and maintenance of the Mactan-Cebu International Airport to the tandem of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Infrastructure to pave the way for the P17.5-billion expansion project.

Transportation Secretary Joseph Emilio Abaya said passengers using the country’s second-busiest gateway airport could expect better, more customer-oriented services soon as the GMR-Megawide consortium formally took over the airport last Nov. 1.

“This is a major step in our thrust to modernize our transportation facilities, and in delivering world-class services that the public deserves. As a major international destination for business travelers and tourists alike, we are excited to bring the Mactan-Cebu airport at par with the best in the world,” he said.

The GMR-Megawide consortium has lined up immediate enhancement programs over the next three months to shorten queuing time and maximize the use of airport space. It is set to equip the immigration section with passport readers and computers. The immigration area would be relocated to a larger space.

Basic airport facilities would also be modernized through interior design improvements. New seats for the waiting areas would be imported and an airconditioned room would also be constructed at the arrival area, while comfort rooms would be rehabilitated.

Airlines led by national flag carrier Philippine Airlines Inc. of taipan Lucio Tan and budget airline Cebu Air Inc. (Cebu Pacific) of business tycoon John Gokongwei are mounting additional international and domestic flights from Cebu.

Passenger volume at the country’s second busiest international gateway is expected to increase to 12.5 million by 2018 form the current level of 4.5 million.

“These developments give us a peek into the dynamic future that the DOTC is working on for Cebu. We believe that our airport modernization efforts will spur economic growth in the province and the region, especially through tourism and job creation,” Abaya added.

The Megawide-GMR Group submitted the highest bid of P14.404 billion for the project last Dec. 12. Other bidders include Filinvest – CAI Consortium (P13.999 billion), Premier Airport Group of SM Group of retail magnate Henry Sy (P12.5 billion, the Metro Pacific Investments Corp. – JG Summit Holdings Airport consortium led by MPIC and JG Summit Holdings (P11.23 billion); AAA Airport Partners led by the Ayala Group and Cebu-based Aboitiz Land (P11.088 billion); the San Miguel Corp.-Incheon Airport consortium (P9.05 billion); and the Lopez groups’ First Philippine Airports (P4.7 billion).

The Filinvest Group lodged a complaint before the DOTC questioning the eligibility of the Megawide – GMR Group to undertake the project. The protest was denied allowing the DOTC and the Mactan-Cebu International Airport Authority’s (MCIAA) to sign a 25-year Concession Agreement with GMR-Megawide.

The consortium has earmarked at least P20 billion to transform the country’s second largest international gateway into the world’s first resort-airport featuring 20 aircraft parking stands with aerobridges and 13 aircraft parking stands served by bus transfers. A new passenger terminal building would be constructed starting next year and would be completed in 2019.

It would also feature a dedicated international and domestic terminals connected by a link bridge for the convenience of passengers making connecting flights. It would have a total of 149 check-in counters for international and domestic flights for passenger convenience from the current number of 44.

Meanwhile, the MCIAA has raised the domestic passenger service charge or terminal fee to P220 per departing passenger from P200 and the international passenger service charge to P750 from P550.