December 02, 2013

Government to bid out Mactan PPP project today

After suffering delays, the auction for the P17.5b Mactan-Cebu International Airport expansion and modernization contract under the Public-Private Partnership program will push through today. Those that have expressed interest to bid are the MPIC-JGS Airport consortium led by Metro Pacific Investments Corp and JG Summit Holdings; the San Miguel-Incheon consortium; Premier Airport Group of the SM group; First Philippine Airports led by the Lopez Family; GMR-Megawide; the Filinvest CAI of the Filinvest Group; and the AAA Airport Partners of the Ayala and Aboitiz Groups. If successful, the results will be known in 20 days and the contract should be awarded in 35 days.

Our Take: We believe that a speedy announcement of the bid results should provide a big boost to investor sentiment as this would suggest government’s greater resolve to address policy issues pertaining to the PPP and hasten the implementation of the projects. Recall that government has made key improvements to the terms of the projects to make them more attractive to bidders. – WealthSec