Seven groups interested in airport PPP

SEVEN GROUPS yesterday formally expressed their interest in an airport public-private partnership (PPP) project, the first to be offered by the Aquino administration under its flagship infrastructure program.

Prequalification documents for a contract to expand and operate the Mactan-Cebu International Airport were submitted to the Trade department, which identified the prospective bidders as:

• The MPIC-JG Consortium led by MPIC-JGS Airport Holdings Inc. -- a joint venture between Metro Pacific Investments Corp. and JG Summit Holdings, Inc. French airport operator Aeroports De Lyon was named as its operation and maintenance (O&M) partner.

• AAA Airport Partners, which is led by the Ayala-Aboitiz joint venture A2 Airport Partners with Texas-based ADC & HAS Airport Worldwide, Inc. Its O&M partner is Houston Airport System.

• Filinvest-CAI Consortium, led by Filinvest Development Corp. with Changi Airports Mena Pte. Ltd. The group appointed Changi Airport Saudi Ltd. as its O&M partner.

• San Miguel-Incheon Airport Consortium, led by Incheon International Airport Corp. with San Miguel Corp.’s Optimal Infrastructure Development, Inc., Mactan Capitana Holdings, Inc. and Skylake Incuvest & Co. Incheon will also act as the O&M partner.

• First Philippine Airports, led by First Philippine Holdings, Inc. with Infratil Asia, Ltd. Its O&M partners are Wellington International Airport Ltd., NZ Airports Ltd., and Infratil Ltd.

• Premier Airport Group composed of SM Investments Corp., Citadel Holdings, Inc., Zurich Airport International AG and Prospector Investments Holdings, Inc. Switzerland-based Flughafen Zurich AG is the O&M partner.

• GMR Infrastructure and Megawide Consortium, led by Megawide Construction Corp. together with India-based GMR Infrastructure Ltd. The consortium tapped Delhi International Airport (P) Ltd. and GMR Hyderabad International Airport Ltd. as its O&M partners.

Their submissions will be examined over the next 20 days, Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla told reporters.

“We will announce the prequalified firms on May 17,” added Mr. Lotilla, who is also the chairman of the bidding committee.

The P17.5-billion Mactan-Cebu International Airport project covers the construction of a new terminal, rehabilitation of the existing facility and a 20-year O&M contract.

The legal, financial and technical qualifications set by the government include a minimum net worth of P2 billion and airport O&M experience. Airline-ralated firms were also restricted from owning more than 33% of the participating consortium.

Based on the project timetable, prequalified firms should submit their bids on Aug. 2. The technical proposal will be immediately evaluated, while the financial offer will be will be opened on Aug. 23. A notice of award will be issued on Sept. 17, to be followed by an Oct. 4 contract signing.

Officials said they were satisfied with the number of prospective bidders.

“[S]even is actually an excellent number,” Mr. Lotilla said. “It is already an indicator that there is a wide representation of participants.”

Cosette V. Canilao, executive director of the PPP Center, said: “We are happy with the turnout. That only validates the procedures adopted by the DoTC (Department of Transportation and Communications).”

She dismissed concerns that foreign investor interest in the PPP program was weak, explaining that the limited participation in the P15.86-billion Ninoy Aquino International Airport Expressway auction earlier this month was due to specialized interests.

San Miguel and Manila North Tollways Corp., which operate toll roads to which the NAIA expressway will link, were the only bidders for the project. San Miguel, which offered an P11 billion upfront payment on top of the project cost, has been named the winner.

The Mactan-Cebu airport deal is the first airport project to be offered under the PPP program launched in late 2010. The government has so far rolled out 10 projects but to date only three have been auctioned off.

Previously awarded were the P1.96-billion Daang Hari-Southern Luzon Expressway link, which went to Ayala Corp. in December 2011, and the P16.42-billion School Infrastructure Project Phase I that was bagged last year by the BF Corp.-Riverbanks Development Corp. and the Citicore Investments Holdings, Inc.-Megawide consortiums. -- Cliff Harvey C. Venzon

source:  Businessworld, April 22, 2013