At the Senate hearing, Davide says MCIA upgrade “overdue”

CEBU, Philippines - The expansion of the Mactan Cebu International Airport is “long overdue” and the project is “very important. ”

These were the sentiments raised by Governor Hilario Davide III to the Senate committee on public service during the hearing of the multi-billion peso project yesterday. Davide said he was speaking on behalf of the business community in Cebu.

“We expect tourist arrivals to increase so it is a very welcome idea most especially to Cebuanos and the Filipino people,” Davide said.

The remaining thing to do now, he said, is to award the project to the best bidder.

“If there’s already a winning bidder, why not award it?” Davide asked.

The Megawide-GMR Group submitted the highest bid of P14.404 billion, but the project has not been awarded to the group just yet owing to allegations by another bidder, Filinvest Group, of alleged conflict of interest.

Filinvest – CAI Consortium has posted the next highest bid of P13.999 billion.

During the Senate hearing, Oliver Tan, chief financial officer (CFO) of Megawide, belied any conflict of interest despite GMR and Malaysia Airports having partnered in several projects.

Senator Sergio “Serge” Osmeña III, vice chairperson of  the committee, himself expressed concern over the awarding of the project and over the 25-year management contract of the MCIA, questioning the financial standing and operating record of GMR.

He, clarified, however, that he has nothing against the company.

“Hindi naman kasalanan ito ng GMR. GMR has no fault in here. I don’t expect them to say anything, except that they will look pretty. Every bidder does that, believe me. DOTC who (sic) did not undertake or exercise the due diligence that we should require for projects such as this,” Osmeña said.

Responding to the issue on financial status, GMR Airports president Sidharath Kapur said the company has “an excellent financial standing as illustrated by the investment grade credit rating by international rating agencies.”

Kapur also said that reputed international banks have expressed interest in lending to the consortium for the project, adding, that GMR continues to make operational profits and is meeting all its financial obligations.

“Megawide’s net worth alone is four times the stipulated requirement for the MCIA bid,” Tan chipped in.

The GMR-Megawide consortium reiterated its commitment to engage with Cebuanos in developing a world class airport. The company said it has already initiated efforts in getting inputs from the local community in the airport’s development. 

“The design of an airport is about creating spaces which the passengers and community can enjoy. We have plans to collaborate with internationally-renowned Cebuano architects and designers to ensure that Cebuanos are proud of their airport,” said Andrew Harrison, Deputy CEO of GMR’s Delhi International Airport.

Megawide chief marketing officer Louie Ferrer also reiterated the consortium’s efforts in reaching out to both Cebuano stakeholders and the general public.

“Not only are we talking to local designers, we are also sharing the design to the public through social media. We can collaborate with them on the design and facilities they are looking for in their airport,” Ferrer said.

The consortium has already shared a walkthrough of its design on its Facebook page to get public feedback for further improvement. — (FREEMAN)