Megawide-led consortium bags Mactan airport expansion contract

MANILA, Philippines – The consortium of Filipino-owned Megawide Construction Corp and Bangalore-based GMR Airports was finally awarded the contract for the expansion of the Mactan Cebu International Airport.

Department of Transportation and Communications (DOTC) spokesperson Michael Arthur Sagcal said on Friday, April 4, that the public private partnership (PPP) project has been awarded to the consortium after a disqualification case filed against them was settled.

The Megawide-GMR tandem submitted the highest bid of P14.404 billion for the project December 12 last year, followed by the Filinvest-CAI Consortium, which submitted P13.999 billion as bid. (READ: Megawide-led consortium submits highest bid for Mactan airport)

The project, which will modernize the country’s second largest aviation hub by constructing a new international passenger terminal building and by expanding its existing passenger terminal, will cost P17.5 billion. It will be shouldered entirely by the winning bidder.

Filinvest, however, asked DOTC in a letter dated Jan 2, 2014 to disqualify the top bidder for alleged conflict of interest involving GMR Infrastructure of India, First Philippine Airports Consortium, and the Malaysia Airports Holdings Berhad (MAHB). (READ: Filinvest wants top Cebu airport bidder disqualified)

Even Senator Sergio “Serge” Osmeña III supported the disqualification by revealing in February GMR’s ties with Frankfurt Airport Services Worldwide (Fraport), the operator partner and majority beneficial owner of Piatco (Philippine International Air Terminals Company Incorporated), the consortium in the NAIA 3 debacle. (READ: Cebu airport winning bidder another Piatco?)

The Megawide-GMR tandem has repeatedly denied the alleged conflict of interest.

The two companies first tied up in 2013 to create a joint venture company for the PPP project. (READ: Megawide, Indian firm tie up for Cebu airport bid) – Rappler.com