Philippines’ Cebu Airport concession deal moves ahead

1 September 2013 (Last Updated September 1st, 2013 18:30)

The Philippines Department of Transportation and Communications (DOTC) has approved the concession deal for the first airport held in a public private partnership (PPP), paving way to start the bidding process for the PHP17.5bn ($393m) Mactan-Cebu Airport revamp project.

Cebu Airport

The Philippines Department of Transportation and Communications (DOTC) has approved the concession deal for the first airport held in a public private partnership (PPP), paving way to start the bidding process for the PHP17.5bn ($393m) Mactan-Cebu Airport revamp project.

According to Transportation Secretary Joseph Abaya, the bid submission was deferred from the previously scheduled bidding date on 28 August 2013 and it will now progress after 30 days following the launch of the concession agreement.

However, some of the potential bidders sought between 45 days and 75 days, according Philippine Daily Inquirer.

The concession agreement was delayed following unsettled commercial issues raised by the private sector, which included low performance and specification standards, operations at the duty free store, and the role of local government entities and real property taxes.

"The overall airport project involves building a new international passenger terminal facility with an annual passenger capacity of eight million."

The overall airport project involves building a new international passenger terminal facility with an annual passenger capacity of eight million, which is double the airport's existing capacity.

The project also involves modernising the current terminal facility, which has been operating beyond capacity by handling 6.7 million passengers as against the original capacity of 4.5 million passengers in 2012.

Philippines firms including Ayala and Aboitiz Equity Ventures (AEV) have already signed MoU to form a 50-50 joint venture to bid for the Mactan-Cebu International Airport (MCIA) Passenger Terminal project.

Prequalified bidders for the project include Filinvest, a CAI Consortium along with Changi Airport, First Philippine Airports in conjunction with New Zealand's Infratil Asia, which is led by Lopez.

Other bidders also include GMR Infrastructure and Megawide Consortium, MPIC-JGS Airport Consortium, SM-led Premier Airport Group together with Switzerland's Zurich Airport operators and San Miguel-Incheon Airport Consortium.


Image: Mactan Airport's latest project would double its capacity to eight million passengers per year.