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Group says it has funds for airport rehab

business / Headlines
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Group says it has funds for airport rehab

/ 06:10 AM November 08, 2014

The consortium of Megawide Construction Corp. and Indian firm GMR vehemently denied accusations that it would increase airport terminal fees at the Mactan Cebu Airport project 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) claiming 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.

A group of businessmen asked the Supreme Court on Monday to stop a private consortium from undertaking the multibillion-peso expansion and rehabilitation project for the Mactan-Cebu International Airport (MCIA) that the Department of Transportation and Communications awarded last April. FILE PHOTO

 Mactan-Cebu International Airport (MCIA). FILE PHOTO

BPM claimed that the consortium had to increase the passenger service charge (PSC) and other service fees at the airport just to cover expansion and operating costs.

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

“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) 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 Nov. 1.

GMCAC said it was keen on strengthening Cebu’s position as the country’s most popular destination and had been “making improvements from day 1 of the handover to make the Mactan-Cebu Airport the friendliest gateway.” Doris C. Dumlao

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TAGS: Airport rehabilitation, Business, GMCAC, gmr, GMR-Megawide Cebu Airport Corp., Mactan-Cebu airport, Megawide Construction Corp.
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