DOTC gives bidders more time to inspect Mactan-Cebu airport

The Department of Transportation and Communications (DOTC) has given interested bidders more time to visually inspect the Mactan-Cebu International Airport by postponing the submission of qualification documents for the controversial P17 billion new passenger terminal project. In a bulletin, DOTC undersecretary and chairman of the Pre-qualification Bids and Awards Committee (PBAC) Jose Perpetuo Lotilla said the schedule of the pre-qualification conference has been moved to Feb. 13 instead of Jan. 28 while the submission and opening of qualification documents has been postponed to Feb. 27 from Feb. 18. Lotilla explained that the opportunity to inspect the airport will enable the prospective bidders to familiarize themselves with the site conditions in relation to the Mactan-Cebu International Airport project. The official issued Supplemental Bid Bulletin No. 01-2013 laying down the guidelines for site visits. Prospective bidders are required to submit a written request and coordinate with the Office of the General Manager. Based on a PPP Center briefing paper, the Mactan-Cebu airport project involves the construction of a world-class passenger terminal building with a capacity of eight million passengers a year as well as the operation and maintenance of the old and new facilities. The current terminal building has a handling capacity of 4.5 million passengers annually on two wings: the domestic wing and the international wing. The passenger traffic for year 2011 was around 6.2 million passengers. The deterioration in the level of convenience and lack of ability to handle more passengers may hinder further development and growth of the Cebu airport. Transportation secretary Joseph Emilio Abaya last Jan. 15 reiterated that the agency was sticking to its earlier decision barring owners of airlines to bid for Mactan-Cebu International Airport project to avoid sheer conflict of interest. According to terms of reference issued by the DOTC last month, "an individual, partnership, corporation, or any other juridical entity, and if the prospective bidder is a consortium, any consortium member or such consortium members’ affiliates for the duration of the bidding process cannot be an entity providing air transport services in the Philippines, be they domestic or international." Also, the bidders cannot have any interest, direct or indirect, in such an entity; or cannot be owned by such entity. The guidelines prevent diversified conglomerate San Miguel Corp. (SMC) that bought a 49 percent stake in national flag carrier Philippines Airlines (PAL) for $500 million last year as well as JG Summit Holdings that owns Cebu Air Inc. (Cebu Pacific) from joining the public bidding. PAL president and chief operating officer Ramon S. Ang and JG Summit president and chief operating officer Lance Y. Gokongwei said they were appealing the ban. This leaves conglomerate Ayala Corp. that has tied up with publicly-held Aboitiz Equity Ventures Inc. as the major bidders for the project. — DVM, GMA News