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Metro Manila (CNN Philippines, December 21) – Megawide Construction Corporation filed a formal appeal on Monday to restore its preferred status in the plan to rehabilitate the Ninoy Aquino International Airport.
Megawide’s Director of Branding and Corporate Affairs, Manuel Louie Ferrer, confirmed the filing of the motion for reconsideration with the Manila International Airport Authority and the Department of Transportation on Monday morning, a week after the regulator voted to strip Megawide and its Indian partner GMR Infrastructure of their original proponent status for the ₱ 109 billion project.
The rehabilitation of NAIA is an initiative that has been long overdue as the government struggles to find a private partner who will accept its terms to repair, upgrade and maintain the largest and busiest entrance in the country.
During a Senate hearing last week, DOTr Secretary Arthur Tugade said the MIAA board voted to remove Megawide’s first DIB status for the airport rehabilitation based on a Nov. 19 letter from the National Economic and Development Authority that questioned the financial position of the listed company.
In November, the Secretary of Socioeconomic Planning, Karl Kendrick Chua, and the Secretary of Finance, Carlos Domínguez III, returned the Megawide-GMR plan to the DOTr, as the group appeared to lack funds to sustain the project, and said that the Megawide capital of $ 18 billion at the end of 2019 nearly half of the $ 32.6 billion needed to support NAIA’s rehabilitation plan. Company officials argued during the Senate hearing that there was a difference in the interpretation of the 30% stake requirement.
READ: NEDA boss denies role in stripping Megawide from NAIA’s rehabilitation project
Megawide said it only needs to cover 60% or ₱ 19.58 billion, while the remaining 40% will be financed by its foreign partner GMR.
“It was our interpretation coming from our experience at Mactan, as well as from our past experiences of qualifying offers, such as the regional airport offer, etc., which also passed through the NEDA ICC (Investment Coordination Committee),” he said Ferrer told CNN Philippines when asked about the points raised in the company’s appeal letter.
“But to expedite approval, we met their requirement and submitted additional documents the day after they sent the letter to DOTr,” he added.
If Megawide regains its OPS, it would still have to go through NEDA Board approval and a Swiss challenge, where other companies are invited to submit more competitive proposals. If accepted, Megawide’s proposal will grant them the right to operate NAIA for 25 years.
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Two other companies have submitted their own offers regarding NAIA. San Miguel Corporation said it wants to operate and maintain NAIA for only 10 years, but will not undertake the redesigns planned by Megawide-GMR.
The conglomerate is also building the $ 740 billion New Manila International Airport in Bulacan.
Philippine Airport Ground Support Solutions, Inc., which currently offers airport ground handling services, also submitted its own NAIA proposal.
Megawide was previously upgraded and currently operates the Mactan Cebu International Airport, as well as the Clark International Airport in Pampanga. Tugade said last week that there is still time for Megawide-GMR to request a reconsideration.
TIMELINE: The NAIA rehabilitation project
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