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Megawide-GMR denies hiked terminal fees will fund Mactan airport rehab

/ 12:55 PM November 07, 2014
The consortium of Megawide Construction Corp. and India’s GMR Infrastructure Ltd. is the frontrunner for a P17.5-billion deal to operate and expand Mactan Cebu International Airport, the country’s second-busiest air facility. INQUIRER.net FILE PHOTO

The consortium of Megawide Construction Corp. and India’s GMR Infrastructure Ltd. is the frontrunner for a P17.5-billion deal to operate and expand Mactan Cebu International Airport, the country’s second-busiest air facility. INQUIRER.net FILE PHOTO

MANILA, Philippines—The consortium of Megawide Construction Corp. and the Indian company GMR vehemently denied accusations that it would increase airport terminal fees at the Mactan Cebu Airport to bankroll the rehabilitation and upgrading of the airport terminal.

GMR-Megawide Cebu Airport Corp. (GMCAC) responded to accusations made by the Business for Progress Movement (BPM) that the former had no financial capacity to accomplish the project and would cause the public “grave and irreparable injury” once it assumed operation of the airport. BPM claimed that the consortium would have to increase the passenger service charge (PSC) and other service fees at the airport just to cover expansion and operating costs.

Oliver Tan, GMCAC director, said in a statement on Friday: “The accusation that GMCAC is increasing terminal fees to fund expansion and cover operating cost is absolutely not true and malicious. GMCAC is investing additional P16 billion on top of the P16 billion it spent for the premium or concession rights to fund the construction of Terminal 2.”

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“The increase in terminal fee or PSC was part of the concession agreement made by MCIAA (Mactan Cebu International Airport Authority) and the DOTC (Department of Transportation and Communication (DOTC) to all bidders of the project. It is not a special arrangement or privilege afforded to GMCAC,” said Louie Ferrer, president of GMCAC.

Terminal operations of the Mactan-Cebu Airport were officially handed over to GMCAC last November 1.

GMCAC said it was keen on strengthening Cebu’s position as the country’s most popular tourist destination and had been been “making improvements from Day 1 of the hand-over to make the Mactan-Cebu Airport the friendliest gateway.

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TAGS: airport terminal, DoTC, GMR Infrastructure Ltd., Mactan-Cebu airport, Megawide Construction Corp., TYerminal Fee
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