SC upholds award of Mactan Cebu airport project to GMR-Megawide consortium

The Supreme Court (SC) has dismissed for lack of merit the consolidated petitions for certiorari and injunction to restrain the Department of Transportation and Communications (DOTC) from awarding the Mactan-Cebu International Airport (MCIA) Project to GMR Infrastructure Limited (GMR) and Megawide Construction Corp. (MCC).

In a 39-page decision, the high court's Third Division, unanimously dismissed for lack of merit the petition in "GR No. 211737 (Osmeña III v. Sec. Abaya, et al.)" and denied for lack of sufficient legal and factual bases the petition in "GR No. 214756 (Business for Progress Movement (PBM) v. DOTC, GMR-Megawide Cebu Airport Corporation)".

The high court found no patent error or arbitrariness in the DOTC's decision to award the contract to the GMR-Megawide Consortium.

The decision was promulgated on Jan. 13 and released on Friday. Associate Justice Martin S. Villarama, Jr., who retired last Jan. 16, was the ponente or the author of the decision.

The Mactan Cebu International Airport Project was opened for bidding in 2012.

On April 3, 2014, the Pre-qualification, Bids and Awards Committee (PBAC) issued a resolution recommending GMR-Megawide Consortium as the winning bidder.

On the same day, Sen. Sergio Osmeña III immediately sought an injunction from the SC.

On April 4, 2014, the DOTC and Mactan-Cebu International Airport Authority (MCIAA) issued the Notice of Award to GMR-Megawide Consortium.

On April 7, 2014, Osmeña filed a supplemental petition reiterating his prayer for injunctive reliefs and for the SC to further restrain the implementation of the Notice of Award and render judgment declaring the same as null and void.

GMR and MCC submitted and complied with the post-award requirements, including payment of the P14.4 billion bid amount to MCIAA.

On April 22, 2014, the Concession Agreement was executed between DOTC and MCIAA, and GMR-Megawide Consortium.

On Oct. 31, 2014, another petition for injunction was filed, this time by BPM.

The DOTC turned over to GMR-Megawide Consortium the operation and maintenance of the MCIA on Nov. 1, 2014.

The high court gave weight to PBAC's interpretation of the Conflict of Interest provision requiring direct involvement or participation in the deliberations and decision-making related to the bidding for the MCIA Project, saying it was fair, reasonable and practical.

"The issues regarding GMR's Male Airport case and MCC's financial capability have been fully ventilated during the post-qualification stage. Both GMR and MCC and the second highest bidder, Filinvest Development Corporation (FDC), argued their respective positions which were duly considered, including a detailed evaluation of their technical and financial qualification documents," the SC noted.

It found that the PBAC's own inquiry did not yield any concrete evidence of GMR's unsatisfactory performance, as defined in the Instructions to Prospective Bidders (ITPB), and MCC's poor financial health does not necessarily indicate preference for one bidder over the others, especially as the bidding in this case was conducted with transparency.

The SC stressed that the sworn certifications submitted by GMR and MCC "set out the required certification on facts which indicate compliance with the rules on Conflict of Interest."

"Contrary to the claims of Osmeña, representatives from GMR have satisfactorily answered the issue raised on their financial capability for the MCIA Project during the Senate hearing," the SC said.

"There being no violation of any law, regulation or the bidding rules, nor any arbitrariness or unfairness committed by public respondents, the presumption of regularity of the bidding for the MCIA Project must stand," the decision read. — APG, GMA News