The Supreme Court of Philippines has upheld the decision of the Department of Transportation and Communications (DoTC) to award the Mactan-Cebu International Airport project to GMR Infrastructure Ltd (GMR) and Megawide Construction Corporation (MCC) consortium.

Citing lack of merit, the decision endorsed by the Chief Justice of Philippines, has denied the April 2014 petition by Senator to stop the awarding of the contract. It also denied a separate petition by the Business for Progress Movement, for lack of legal and factual bases.

The Philippines apex court’s decision, which was announced by the Supreme Court Public Information Office, clears any overhang that existed on the GMR-led consortium and paves the way for the expeditious implementation of the modernisation and expansion project for Cebu airport.

“There being no violation of any law, regulation or bidding rules, nor any arbitrariness or unfairness committed by the public respondents, the presumption of regularity of the bidding for the MCIA Project must stand,” the decision reads.

Commenting on the development, a GMR Infrastructure spokesperson said, “We welcome the Supreme Court judgment. It clears any confusion or misconception about the process of airport modernisation. This decision reinforces our position as a credible and financially strong airport operator. The decision will also boost the confidence of foreign investors in the PPP programme of the government of the Philippines and comes at an opportune time when five regional airports are being bid out, in which GMR is also participating.”

The GMR Infra-led consortium won the contract to expand and modernise Mactan-Cebu airport on BOT basis for 25 years. The airport concession operates on a clear dual till with aero tariffs fixed under the concession and the airport entity having no cross-subsidy from other revenues. GMR has brought in operational best practices, which have significantly enhanced the passenger experience and improved the airport performance, resulting in double-digit traffic growth. Financially, the airport has reported a healthy EBITDA of 66 per cent for the calendar year 2015 and figured in the ranking of the top airports for the first time in its history.

The order also provides a boost to the GMR-Megawide consortium, who are in the race to bid for five regional airports in Philippines.

GMR Group owns and operates India’s Delhi Airport, which is ranked the World’s No.1 airport in the passenger category, as well as Hyderabad airport, which has been consistently ranked among the world’s top three airports in its category over the last seven years. The group had constructed Delhi airport’s Terminal 3 in a record time of 37 months, and Istanbul’s Sabiha Gokcen airport in 18 months, which is a world record.

GMR Megawide Cebu Airport Corporation is a Filipino company formed by the consortium of GMR group and Megawide Construction Corp of the Philippines under public private partnership with the Department of Transportation and Communication. GMCAC won the 25-year concession to rehabilitate and manage terminal operations at the Mactan Cebu International Airport (MCIA), including the construction of a second, bigger terminal, T2. The company took over management of the MCIA passenger terminal and related areas on November 1, 2014.

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