Government scored for revoking OPS granted to Megawide



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While the government continues to evade inquiries about its subsequent plan after filing the unsolicited proposal for the redevelopment of the Ninoy Aquino International Airport (Naia), a group of policy experts and a group of travelers criticized the state for its alleged lack of will to rehabilitate the air center. .

Infrawatch Philippines coordinator Terry Ridon said the revocation of original proponent status (OPS) granted to Megawide Construction Corp. and partner GMR Infrastructure Ltd. dealt a blow to investor and public confidence, which could Tarnishing the “Build, Build, Build” (BBB) ​​program of the Duterte administration.

“There is no other way to describe it: By unjustly canceling the private proponent PAHO for the second time, the Department of Transportation is pushing the Naia rehabilitation project beyond President Duterte’s term. Public trust in Duterte’s public-private partnership decreases [PPP] projects, since the transportation department gave absolutely no reason to cancel the OPS, ”he said.

For Primo Morillo, the coordinator of the passenger network The Passenger Forum (TPF), the decision of the Manila International Airport Authority (Miaa) to revoke the OPS of Megawide and GMR shows the government’s unwillingness to work with the private sector for infrastructure development. .

“It’s as if the government doesn’t need help to rehabilitate the country’s main international gateway. It is the government that does not appreciate the perfect timing while airline passenger volume is at its lowest in years. It seems that we don’t have to prepare once we recover from the current crisis that we are in now, ”he said.

Without citing any reason, Miaa’s board “resolved” Tuesday night to revoke the OPS from the Filipino-Indian partners based on two separate “meetings” on December 4 and 15.

To recall, Megawide submitted a revised proposal for Naia redevelopment, after the first proponent, the Naia Consortium, withdrew from the project. The revised proposal included the comments and demands of the government regarding aspects such as material adverse government actions and tariffs.

While the government was reviewing the contract, the Investment Coordination Committee (ICC) of the National Authority for Economic Development and Development (Neda) tried to clarify the group’s financial capacity to finance the multi-million dollar project. This has led various groups and individuals to question the unsolicited proposal, raising other issues such as the employment of current Naia staff.

Megawide responded to this by submitting a proof of financial capacity, highlighting its partnership with Indian infrastructure company GMR, which was also its partner in the development of the Mactan-Cebu International Airport (MCIA).

“The public expectation was that the DOTr and the private proponent would jointly resolve the issues raised by the Neda-ICC, in particular the concerns about the proponents’ debt-to-equity ratio, as the rehabilitation project is a joint venture of the sectors public and private. The way the transportation department reached a unilateral decision that overturned PAHO clearly shows bad faith and total incompetence in carrying out PPP projects, ”said Ridon.

Explanation

Megawide and GMR jointly said Tuesday that they will immediately file a motion to reconsider their proposal, stressing that “there are no justifiable reasons to deny the Filipino people a transformed Naia.”

“What will happen now with the president’s promise that he will ensure that Naia is rehabilitated? Will the private proponent also explain if they were able to present all the necessary requirements for this to proceed? Morillo asked.

He also demanded an explanation of how PAHO was revoked.

“Many things require explanation right now. But one thing is clear, Naia needs to be rehabilitated and we should not wait until the normal volume of passengers returns, ”said Morillo.

Government officials remained silent on the matter, declining to respond to questions from the media about the nature of the revocation and how the government will move forward with the rehabilitation of the dilapidated air center.

Megawide has proposed to implement the project between 5 and 7 years in three phases:

* The first phase includes the immediate improvement of the airside and landside segments of Naia through improvements to the existing terminal and optimization of existing runways;

* The second phase includes the construction of a new passenger terminal building and improvements to the apron and taxiway to give access to the new terminal. The group will also relocate the cargo terminal and fuel farm to accommodate the new terminal building; and

* The last phase will see the group building a rail passenger transport system that will allow passengers to move from one terminal to another via an air rail system.

Ridon said the government needs to fix this fight immediately, as the Philippine flying public deserves to have a better main international gateway.

“Unless the transportation department reconsiders, we can all say goodbye to a better Naia. Congestion and poor service are here to stay until the end of the president’s term. This will diminish the president’s legacy, especially since this has been one of his priority projects, ”he said.

Image credits: CNN Philippines
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