Gov’t sweetens terms of PPP project

Bidding for Cebu airport expansion set on Nov. 15


The Department of Transportation and Communications has set the bid submission for its first airport public private-partnership deal—the Mactan-Cebu International Airport—on Nov. 15 with revised terms to include a longer concession period and a lighter tax burden for bidders.

The DOTC earlier said the bid submissions would be held in October, after it postponed the original Aug. 28 auction as the concession agreement needed to be fine-tuned.

Such revisions, which resulted from lengthy discussions with the seven pre-qualified bidders, would still need to be approved by the National Economic and Development Authority (Neda) Board, the DOTC said in a bid bulletin issued Friday.

There were five revisions in all starting with lengthening the concession period from 20 years to 25 years and “transferring the liability for the payment of certain real property taxes to the government.”

Also covered was the “transfer of operations and maintenance of the aprons from grantors to the concessionaire,” including revenue rights and allowing flexibility in the implementation of augmentation capacity.

The DOTC also increased the duration of the period for prohibiting competing airports to 20 years or when passenger traffic at Mactan-Cebu hits 20 million passengers, whichever is later. It was previously set at 10 years or 15 million passengers.

The Mactan Cebu airport served 6.77 million passengers last year, which was already above its 4.5 million passenger capacity.

The P17.5-billion PPP deal is aimed at tapping private sector support to operate and rehabilitate the airport while expanding the facility through a new terminal that can handle eight million passengers a year.

“We have been working hard to find the balance between government and private sector interests. This gives sufficient time for the bidders to finalize their proposals,” a DOTC spokesman said in a separate statement. “Based on the active participation of all seven   pre-qualified groups in the one-on-one meetings, the transport agency anticipates that the bid proposals will be more competitive, resulting in better bid offers to the government.”

Earlier pre-qualified groups were MPIC-JGS Consortium, a venture between businessman Manuel Pangilinan’s Metro Pacific Investments and Gokongwei-led JG Summit Holdings; AAA Airport Partners, a venture between Ayala Corp. and Aboitiz Equity Ventures; Gotinanun-led Filinvest Development  Corp.; San Miguel Corp.; Lopez-led First Philippine Holdings; Henry Sy’s Premier Airport Group, and Megawide Construction Corp.

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  • yew_tan

    Dapat huwag na lang pansinin ng mga private investor yang PPP na yan. Walang mangyayari diyan. Hayaan mo na lang mag-study ng mag-study ang gobierno niyan.

  • yew_tan

    Saka na lang siguro may mauumpisahan na project kong mapatimbog si PNoy sa puwesto. Impeach PNoy for incompetence.

  • Pangasugan

    “The DOTC also increased the duration of the period for prohibiting competing airports to 20 years or when passenger traffic at Mactan-Cebu hits 20 million passengers, whichever is later. It was previously set at 10 years or 15 million passengers.”

    THIS CLAUSE SHOULD BE STUDIED PROPERLY. This means that no airport can be built in Cebu until 2033 and not until Mactan reaches 15 million passengers per year? This is highky disadvantageous to the people of Cebu and the government.

    • yew_tan

      Study na naman. Kailan pa kaya matapos ang kaka-study?

      • Pangasugan

        You can finish it in a day – if you do not give the task to a committee.

  • joboni96

    talo na naman pilipino
    sa mga collaborator sa gobyerno

    intsik switik na naman kita
    gamit naka depositong pera ng pilipino

  • M C

    So why didn’t they think of those “sweeteners” in the early part of Senyor Simyon’s term when they have all the chances to complete those projects in four years? Is it naivette, ignorance or stupidity? It was as if the whole four years have all been a learning curve all along or waiting time that an investor may “come across” and the whole country was the guinea pig. By saying that those “sweeteners” would still need a NEDA approval is like saying that they need someone to blame if there was no infra completed during Senyor Simyon’s watch. I am sure it will take NEDA another year to study those “sweeteners”. Pity the country for Senyor Simyon’s lack of political will.

  • graveh

    as if naman sweeten sweeten my foot!! puro kayo release. mga magnanakaw. kadiri simeon eeeeeeeeeewwwwwwwwww

  • Aisa Pangdan

    PPP – Puro Powerpoint Presentation.

    Di nagkakasundo sa kickbacks, patong, lagay, kabig….tuwid na daan is just a slogan. Pag nawala na si Pnoy sa puwesto – sigurado lalabas ang mga baho ng mga kontratang ito.

  • unokritiko

    Thats how sweetly you transfer government money to a private individual and of course part of it goes to the pocket of official of govt{DOTC}.
    So PPP projects are projects of government that is hiding the corrupt practices of government from public view. Specially and always if there is delay of projects due to some modification then it is full of corruption .

  • kismaytami

    LOL! Sa sobrang sweet nga ng mga PPP deals eh hindi matapus-tapos yung pinaka-unang engagement, ang tagal ng romansahan ng Ayala group at gobyerno.

  • wawa2172

    DOTC should be sure of its PPP sweeteners at baka mag karoon naman nang PPP Scam in the future starring PNoy admin. The DOTC should clear it with COA na kakampi ngayon nang admin para safe sila kahit may kahayupang mangyari. The agency could cite that COA approval and clearing of the deal so its above board. Tiyak na like the PDAF scam the PPP will have its own version of how commissions from projects will change hands from private partners to government officials task to approved the project, then funding releases and implementation. Tiyak dito yayaman ang mga anak at apo nang mga cabinet secretaries or cohorts nito at damay pa si presidente. Very selective ang pag file nang kaso at puro opposition lang. Sabi nang COA at DOJ may susunod pa. I don’t think so, si Corona lang ang na impeach dahil sa maling declaration nang SALN. No one was impeach sa SC kahit yung plagiarist whose still sitting at the SC. So Enrile, Jiggoy at Revilla mag workout at mag tour all over the world na kayo kasama ang pamilya para masarap ang bonding dahil bilang na ang araw nyo sa parharap sa korte.

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