The Philippines Department of Transportation and Communications (DOTC) has awarded the PHP17.5bn ($390m) Mactan-Cebu International Airport Project to the GMR-Megawide Consortium.
The 25-year concession contract to develop the Mactan-Cebu International Airport was awarded after three months of extensive scrutiny of all six bidders, including SM Investments Corp and San Miguel Corp.
Other consortiums that competed include Metro Pacific Investments Corp and JG Summit Holdings Corp with partner Aeroports de Lyon; First Philippine Holdings Corp and Wellington International Airport Limited; and Ayala Corp , Aboitiz Equity Ventures and Houston Airport System.
The development of the new airport, which will be built under the government's Public-Private Partnership (PPP) programme, includes renovation of the existing passenger terminal building and the construction of a new terminal building to serve international flights.
Philippines DOTC spokesperson Michael Arthur Sagcal said: "Amidst all the noise drummed up in different forums the past few months, the Department of Transportation and Communication (DOTC) has allowed nothing but the law and the country's interests to matter in awarding the project.
"This project should have been done at least a decade ago, so there is no more time to waste. We have resolved all issues, we are ready to defend our decision and it is now time to push forward."
GMR-Megawide, which plans to build a terminal that can accommodate 25 million passengers annually, will have to complete post-award requirements in 20 days, including the submission of an irrevocable letter of credit in the amount of PHP180m ($4m).
Furthermore, the consortium will also have to pay the premium amount to the government through the Mactan Cebu International Airport Authority.
Philippines DOTC said in a statement: "Once the requirements are satisfied, the concession agreement will be signed by the parties, paving the way for the implementation of the project over the next three to four years."
Image: Philippines has awarded a $390m Cebu airport contract to the GMR-Megawide consortium. Photo courtesy of the Philippines Department of Transportation and Communications (DOTC).