MCIA explains P17.5B project cost
The P17.5-billion expansion project of the Mactan Cebu International Airport (MCIA) will not just cover the construction of a terminal building but will also include the construction of airport support facilities.
MCIA General Manager Nigel Paul Villarete said the P17.5 billion, which some tourism stakeholders regard as bloated, covers a 20-year, two-phase period.
“They are correct with the P5 billion cost to build the terminal. Based on the KOICA (Korean International Cooperation Agency) study, the cost was only P4.5 billion which is what we also used in our project cost,” he said.
In the 888 News Forum yesterday Robert Lim Joseph, official of the National Association of Independent Travel Agencies (NAITAS), said the public needed to know the details of the project.
“Based on studies made by KOICA, we require P5 billion to expand. All of a sudden, it has ballooned to P17.5 billion just for the terminal. We want to find out why,” he said.
Joseph’s first cousin Gordon Alan Joseph, the president of Cebu Business Club, clarified that the amount doesn’t only cover the terminal.
Villarete said the MCIA tapped consulting firms Deloitte Touche Tohmatsu India Pvt Ltd. (India) and its consortium partner Puyat Jacinto and Santos Law (Philippines) to do the cost estimates of the terminal expansion project. He said their estimates showed that the phase one of the project will cost P8.873 billion while the second phase will cost P8.647 billion for a total of P17.5 billion.
Villarete said the winning bidder will spend for the construction of a new terminal, support facilities, removal and relocation of existing facilities, aprons, parkings and curbside.
After a decade, Villarete said the winning bidder will have to upgrade the new terminal and spend P7.5 billion, depending on the foot traffic growth in the airport.
Major gateway
“With Cebu being a major gateway, we expect foot traffic to grow even faster when the new terminal is in place. The project should comply with ICAO (International Civil Aviation Organization) standards,” Villarete said.
Transportation and Communications Secretary Joseph Abaya said they finally released the concession agreement for the project last Saturday and would be followed by the bidding.
The prequalified bidders for the project include MPIC-JGS Consortium; Ayala Corp. and Aboitiz Equity Ventures partnership – AAA Airport Partners, Gotinanun-led Filinvest Development Corp.; San Miguel Corp.; Lopez-led First Philippine Holdings; Henry Sy’s Premier Airport Group, and Megawide Construction Corp. As of last year, MCIA logged 6.7 million passenger traffic which is nearly more than half of the airport’s capacity of five million passengers a year. “We have been running on overcapacity and this expansion project will help us ease that and improve the efficiency of the airport to support the industries that will depend on the airport like tourism,” Villarete said. With Correspondent Jose Santino S. Bunachita
