March 14, 2014

Government set to award international airport PPP contract

The Philippine Star today quoted Transportation and Communications official as saying the government is set to award the P17.5b Mactan-Cebu International Airport expansion project to the winning bidder.

A consortium composed of Megawide Construction Corp. and Bangalore-based GMR Airports last December submitted the highest bid of P14.404b for the project under the Public Private Partnership Program of the government. However, the award has been delayed by a protest lodged by the second highest bidder Filinvest - CAI Consortium which cited an alleged conflict of interest involving GMR.

Our take: The PPP program has earlier gained momentum when government decisively addressed the major concerns on the terms of some key PPP projects. However, protests by losing bidders have delayed the awarding of some contracts. Thus, a speedy resolution of these protests will bode well for market sentiment. – WealthSec