Bid terms for Cebu airport deal relaxed

The Department of Transportation and Communications (DOTC) has revised and, in some cases, relaxed certain requirements for bidders of the P17.5-billion Mactan-Cebu International Airport, the bidding of which was pushed back by at least one month following issues raised by the private sector.

Among the revisions was the reduction of the so-called cash support required by the bidders, which was originally set at P4.145 billion but was slashed to P3.998 billion, a bid bulletin outlining “amendments to the instructions to bidders” showed on Thursday.

Moreover, the DOTC said the grant of cash support and other benefits by the DOTC and Mactan-Cebu International Airport Authority would be made “without prejudice” to applications for income tax holidays and other investment incentives.

The original TOR also required a so-called construction performance security amounting to P350 million in the form of an irrevocable letter of credit. In the revised version, the amount was cut to P180 million.

The DOTC added that the concession agreement provided a “minimum area” to be built by the winning bidder for the new terminal. Bidders will, thus, be allowed to propose their plan for the terminal area based on their own studies and the so-called attendant aspects like peak hour passenger traffic.

The DOTC added a provision where bidders were required to submit their conceptual design that “captures the aesthetics and spirit of traditional architecture in the Philippines.”  This will be considered during the detailed evaluation process to determine whether the technical proposal is complete, DOTC said.

The revised requirements were released following the issuance of the draft concession agreement to the seven prequalified groups on Aug. 1.

The original bidding deadline was set for Aug. 28 but the DOTC deferred this because it was still refining the concession agreement.