GMR-Megawide submits $3B bid for NAIA rehab

The consortium of Megawide Construction and India’s GMR Infrastructure Ltd hopes to replicate the development it has done to Mactan-Cebu International Airport as it proposes a US$3-billion (16.3 billion) rehabilitation plan for Ninoy Aquino International Airport (NAIA).

“As an experienced private operator, we have a deep understanding of the problem experienced by NAIA and we would like offer our take on the solution,” Louie Ferrer, one of the consortium’s authorized representatives, was quoted as saying in statement from Megawide disclosed to the stock exchange yesterday.

“Our team has transformed Delhi International Airport, previously one of the world’s worst airports, into one that is consistently named among top five best airports of the world. We have also transformed Mactan-Cebu International Airport, one of the Philippines’ previously overlooked airports, into the 2016 Best Regional Airport in Asia Pacific. We hope to contribute our knowledge from these projects to the development of our country’s main gateway,” he said.

The proposal is aligned with the government strategy to develop a sustainable multi-airport system in the Philippines, as GMR-Megawide eyes to maximize the airside and terminal capacities of a highly constrained NAIA.

“It is vital to immediately decongest NAIA and maximize its potential in order to sustainably support the air traffic needs of the greater capital region,” he explained. “A solution is urgently needed, which we in the private sector are willing to support and provide.”

GMR-Megawide cited its experience in modernizing Mactan-Cebu Airport in its proposal to decongest and rehabilitate NAIA.

The consortium eyes to raise the annual passenger capacity of NAIA to 72 million during the 18-year concession period.

GMR-Megawide's proposal is separate from the one submitted in February by a "super consortium" composed of the country's 7 largest conglomerates, which is also valued at P350 billion.

Its proposal is anchored on resolving what they perceive as the main issue faced by NAIA: capacity. “NAIA’s most critical constraint is the limited airfield capacity, which limits its capability to accommodate more flights. It also has a reduced ability to control delays related to aircraft movement, thereby worsening terminal congestion,” said Ferrer.

The first phase will improve airside capacity and terminal improvements in the first 2 years, introducing "world class" performance measures in the third and fourth years and building future capacity in the fifth and sixth years.

GMR-Megawide said it would also construct full-length taxiways for the primary and secondary runways, additional rapidexit taxiways for the primary runway and an extension of the secondary runway among others.

The consortium took over operations at MCIA in November 1, 2014. Since then MCIA has won a number of international awards, most notably the Asia Pacific Regional Airport of the Year from the CAPA Center for Aviation in 2016.

GMR-Megawide has a 25-year concession to manage and expand the Mactan aiport.

The consortium company began a three-year new terminal construction project in June 2015. The new terminal is designed to boost the airport’s capacity to 12.5 million passengers when it opens by June 2018.

It was April 2014 when GMR-Megawide bagged the P17.5-billion concession to rehabilitate and manage MCIA for 25 years.

"Given the steady 6 percent to 7 percent per annum economic growth in the Philippines, options besides Manila are needed. As the second largest city Cebu offers a sizeable local market. With its position in the middle of the country Cebu also has the geography to emerge as a large hub linking secondary cities throughout the Philippines, as well as international destinations within the region and afar," CAPA had said in a report.

CAPA also noted Mactan-Cebu is well positioned for long-term growth given its upcoming new terminal.

"The new terminal will enable Cebu to build as a hub for transit traffic, and to benefit further from infrastructure constraints at Manila, which are prompting Philippine carriers to base additional aircraft at secondary cities," it noted.

Cebu has emerged to be the major air hub — outside of Manila — from which travelers can hop to other major destinations in Visayas and Mindanao.