Megawide still has chance in NAIA rehab despite OPS revocation, says Tugade
MANILA, Philippines — Transportation Secretary Arthur Tugade said Megawide Construction Corp. and GMR Infrastructure would still have a chance to rehabilitate the Ninoy Aquino International Airport (NAIA).
During a Senate public services hearing, Tugade said Megawide could still appeal the revocation of its original proponent status (OPS) for the NAIA rehabilitation.
“Kung may motion of reconsideration na isusumite yung Megawide, i-sumite yan bago yung next board meeting (ng Manila International Airport Authority) para nang sa ganon ma-take up po ‘yan,” the transport chief said.
Megawide-GMR was the consortium behind the Mactan-Cebu International Airport modernization that has won multiple international awards. In September, the two companies delivered the Clark International Airport complex to the Department of Transportation (DOTr) under budget and on time.
The government granted Megawide-GMR the OPS for the renovation of NAIA Terminal 1 in July after the consortium gave an unsolicited P109-billion proposal for the modernization of the country’s primary international airport.
Being granted the OPS means that Megawide-GMR could negotiate with the government as the private sector partner for the NAIA rehabilitation project.
But after a MIAA board meeting last Dec. 4, the OPS of Megawide was revoked. The decision was ratified in another board meeting on Dec. 15.
MIAA General Manager Ed Monreal told the Senate committee that the revocation of Megawide’s OPS came after a letter from the National Economic and Development Authority (NEDA) was sent to Tugade, citing findings from its Investment Coordination Committee (ICC) that the firm’s equity position is “insufficient to finance the equity requirement for the proposed project.”
“[Megawide’s] equity position of P18 billion based on its 2019 audited financial statement is insufficient to finance the P32.9 billion for the project,” Monreal said, reading NEDA’s letter.
But Megawide Chief Business Development Officer Jaime Feliciano said that the firm has “complied with the requirements by the NEDA ICC.”
