Cebu airport project for auction on Nov 28

The project's terms were approved by the NEDA board on November 21

FOR AUCTION. The bidding for the airport deal has been set after the NEDA board has approved its project terms.Photo courtesy of the PPP Center.

MANILA, Philippines – The Transportation department will push through with the November 28 auction of the P17.5-billion contract to expand and operate the Mactan-Cebu International Airport (MCIA) after it received go signal from the National Economic and Development Authority (NEDA) board.

The airport project was one of 7 infrastructure projects approved by the NEDA board on Thursday, November 21. The board is chaired by President Benigno Aquino III.

The project had to be approved by the highest socioeconomic planning body before it could be bid out because its terms were revised twice.

“With these developments, bidding for the MCIA PPP project can push through on 28 November 2013,” the Department of Transportation and Communications (DOTC) said in a statement.

The MCIA is the first airport project the DOTC will bid out under the Public-Private Partnership (PPP) program, the centerpiece of the Aquino administration’s development goals. Launched in 2010, the PPP program aims to create vital infrastructure that will help sustain the country’s economic growth.

The auction of the airport project was originally set on November 15. It was deferred after the NEDA board meeting scheduled on November 11 was cancelled to give way to ongoing relief and rehabilitation efforts in Visayas.

Other projects OKd

Aside from the MCIA, other projects under the DOTC that were approved by the NEDA board are as follows:

  • LRT Line 1 South Extension Project. The P64.9-billion project involves extending existing LRT Line 1 by 11.7 kilometers to Bacoor, Cavite.
  • MRT 7 Project. The P62.7-billion project involves construction of a 22.8-kilometer rail system from North Avenue station in Quezon City to San Jose del Monte, Bulacan.
  • LRT Line 1 North Extension Project-Common Station. The P1.4-billion project involves the construction of a common station for LRT 1, MRT 3 and MRT 7.
  • Mactan-Cebu International Airport New Passenger Terminal Project. The P17.5-billion project involves construction of new passenger terminal at the Cebu airport, renovation of existing terminal, operation and maintenance of both the new and the existing passenger terminals.
  • Integrated Transportation System. The P7.7-billion project includes the development of two mass transportation terminals: the SLEX Terminal at FTI Taguig and the Coastal Road Terminal along Manila Cavite Expressway






The DOTC, however, noted that proposed changes in the project terms of the LRT Line 1 South Extension project need to be effected before the project could be re-auctioned.

The August bidding for the railway project was declared a failure after the lone bidder failed to comply with requirements. The 3 other prequalified bidders withdrew their participation, raising concerns on the commercial viability of the project.

The DOTC then revised the project terms addressing the issues raised, but the terms needed the approval of the NEDA board.

In the meantime, the NEDA board also approved the acquisition of an 82-meter vessel for the Philippine Coast Guard, and minor changes in the scope of the Puerto Princesa Airport Development project, the DOTC said.

For the Puerto Princesa airport project, the board approved the construction of a larger passenger terminal building and an expanded apron to accommodate more aircraft.

The Integrated Transport System, on the other hand, will be bid out under the PPP scheme, the DOTC said. –