More investors eye Cebu airport project

Business group leaders and tourism stakeholders in Cebu see the addition of two Asian company bidders to the Mactan Cebu International Airport expansion project as a sign of investors’ looking at Cebu as an important investment destination.

South Korean company Samsung C&T Corp. and Malaysia Airports Holdings Berhad (MAHB) recently inquired about the requirements for the bidding of the P17.5 billion project.

Nigel Paul Villarete, Mactan Cebu International Airport general manager, said in a statement that they’re excited by the high response level of investors because it showed the viability of the project.

He attributed the high number of interested bidders to the keen interest of the private sector in the Private-Public Partnership program of the government.

He said that there were still more companies who would like to participate in the bidding but had yet to publicly declare their interests.

more bidders

“There are actually more, but those which cited in the newspapers are the ones who raised queries on the published ITPB (Instructions to Prospective Bidders). The magnitude of the problem would probably necessitate the formation of consortiums in order to pool their resources and respective expertise. On the part of DOTC (Department Transportation and Communications) and MCIAA (Mactan Cebu International Airport Authority), we expect the winning concessionaire to be the one who will give the best value for money for the government,” Villarete said.

Jay Aldeguer, Island’s Group president, agreed with Villarete.

Aldeguer said that was a good indication of Cebu’s appeal to local and foreign investors.

” This also ensures us that the Cebu airport, which is critical for Cebu’s growth in the next decade or so, will be run with the highest standards,” said Aldeguer.

The more bidders the more choices DOTC would have for the project and the more likely for best results of the project, said Philip N. Tan, Mandaue Chamber of Commerce and Industry president.

relaxed rules

He said he was also in favor of the DOTC’s relaxing the requirements of bidding allowing companies that own interests in airline companies like San Miguel Corp., which owns 49 percent of the Philippine Airlines and JG Summit, which operates Cebu Pacific Air, a chance to join the bidding.

These companies, however, will just own only up to 33 percent of the companies that will bid for the project and will not be involved in the operations of the airport.

Cebu Chamber of Commerce and Industry president Prudencio Gesta said this would result to better bidding competition.

“And I think there’s nothing wrong with including the companies which own airline companies since their participation will surely improve the quality of bids and will make it more transparent. The more qualified bidders, the better will be the result. What is important is for the DOTC to clearly define the terms and conditions of the PPP in case anyone of them will win the bid to ensure to have a fair playing field with other competitors airline companies when these are operational,” said Gesta.

Gordon Alan Joseph, Cebu Business Club President said he was more apprehensive about relaxing the requirements but he was excited that there were many companies interested in the project.

bidders’ dates

Villarete said that there would be a prequalification conference on February 13 at the Edsa Shangri-la Hotel in Mandaluyong City to determine which companies would qualify.

This will be followed by the submission of qualification documents by the companies on February 27.

As of yesterday, Filinvest Development Corp., Macro Asia Corp., Metro Pacific Investments Corp. (MPIC), Ayala Corp. and Aboitiz Equity Ventures Inc. partnership and Prime Power Holdings Corp. have also expressed their interest to bid.