Guv defends hike in budget for expansion of airport

CEBU, Philippines - Governor Hilario Davide III defends the blowing up of the budget of the proposed Mactan airport expansion project to P17.5 billion.

Davide said that the proposed Mactan Cebu International Airport (MCIA) expansion project requires a huge budget.

“For me, that’s a huge project, it would require a huge budget,” he said.

The Mactan Cebu International Airport Authority (MCIAA) has worked with the Korean International Cooperation Agency (Koica) to conduct the feasibility study on improving the airport’s facilities.

Koica has recommended that MCIAA construct additional boarding bridges and terminals at an estimated cost of P5 billion but the amount went up to P17.5 billion.

Davide said that he was already told by MCIA general manager Nigel Paul Villarete about the cost of the project.

Meanwhile, Davide said that the resetting of the deadline for submission of bids for the project could further delay its timetable.

“With this suspension karon, malangan ang bidding,” he said.

The deadline for submission of bids for the P17.5 billion project has been moved to a later date due to changes in the public-private partnership (PPP) project’s concession agreement.

Transportation Secretary Joseph Emilio Abaya said that the concession agreement will be finalized end of August and it is mandatory for the government to give at least 30 days after issuing final Concession Agreement (CA) before the bidding date.

Villarete said the bidding would still continue pursuant to Republic Act 7718 and its Revised Implementing Rules and Regulations (IRR).

Villarete said the Prequalification, Bids and Awards Committee (PBAC) already completed the second round meetings with the pre-qualified bidders.

The Department of Transportation and Communications is targeting to issue the final form of the CA by Friday, and subsequently, setting the bid submission date, which will be between 45 to 75 days from the date of CA issuance.

Villarete added that the bid submission date will be announced next week or earlier.

Several revisions in the PPP’s concession agreement were made following one-on-one meetings between the DOTC and pre-qualified bidders.

Issues resolved include who would shoulder the real property tax, among others.

MCIA project aims to modernize the country’s second-largest aviation hub through the construction of a new world-class international passenger terminal building with a capacity of eight million passengers.

It also involves the renovation of the existing terminal building, where 6.7 million passengers went through the 4.5-million passenger-capacity facility last year. — (FREEMAN)