Connect with us

Hi, what are you looking for?

Economy

Megawide appeals status revocation by MIAA

By Arjay L. Balinbin, Senior Reporter

MEGAWIDE Construction Corp. and its foreign partner GMR Infrastructure Ltd. asked the Manila International Airport Authority (MIAA) board to reconsider its decision to revoke its original proponent status for the P109-billion rehabilitation of the country’s main gateway.

“Yes, this morning (we submitted the letter) to MIAA and the Department of Transportation,” Megawide Corporate Communications Officer Anna Karenina M. Salgado told BusinessWorld in a Viber message on Monday.

In a Dec. 21 letter addressed to MIAA chairman and members of the board of directors, the consortium’s representative and Megawide Director Manuel Louie B. Ferrer said they had submitted additional documents such as its 2019 audited financial statements, joint and solidary agreement executed by the consortium members, latest company profile of GMR, and a revised computation of the tandem’s financial qualifications to prove its capability to undertake the project.

Mr. Ferrer said the decision by the MIAA board to revoke its original proponent status for the Ninoy Aquino International Airport (NAIA) rehabilitation project on Dec. 4 “naturally was based on an incomplete set of facts or documents.”

“As a result, the decision should be reconsidered in light of new and material information addressing the very issue raised prompting MIAA’s decision,” he added.

Mr. Ferrer said the consortium would finance the project through a combination of 70% debt worth P76.1 billion and 30% equity amounting to P32.6 billion.

“We respectfully point out as well that since the government had negotiated with the earlier proponents — otherwise known as the ‘super consortium’ — for two years, it would be in keeping with good practice and fair play for us to be also afforded a reasonable period within which to negotiate with the government and submit all the necessary documents to show our capabilities,” Mr. Ferrer said.

The so-called “super consortium’’ was composed of Aboitiz InfraCapital, Inc; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; and JG Summit Holdings, Inc. The group obtained its original proponent status in September 2018, but this was revoked in July.

Transportation Secretary Arthur P. Tugade said at a Senate hearing last week Megawide-GMR was not yet totally out of the picture.

MIAA General Manager Eddie V. Monreal said at the same hearing that once the agency receives the formal appeal letter from the tandem, the board will make its final decision.

Mr. Monreal also disclosed that two more companies, such as Philippine Airport Ground Support Solutions, Inc. and San Miguel Corp. (SMC), are interested in the rehabilitation of the NAIA.

San Miguel President and Chief Operating Officer Ramon S. Ang said his company’s proposal is only to operate and maintain the main gateway.

“Our proposal is brought on only by the need to have it running effectively and safely for the Filipino people, until our Bulacan airport project is up,” he said last week.

Mr. Ang said the government would benefit more from the sale or development of the NAIA property, potentially earning as much as P2 trillion from the sale of the 646-hectare complex.

Terry L. Ridon, convenor of infrastructure-oriented think tank Infrawatch PH, said in an e-mailed statement on Monday that MIAA should reject proposals to operate and manage the NAIA.

“Aside from not bringing anything new to the table, it will not transform NAIA into a world-class airport all Filipinos can pride themselves in. More importantly, any O&M proposal will only duplicate the already good work the agency has been undertaking in operating the airport, despite no government funding and reliant only on internally generated income,” he said.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Finding a property to settle in after years of being in the pandemic may leave home seekers and smart investors wary of whether their...

Economy

  Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their...

Economy

As part of its development agenda for Pakil in Laguna, Ahunan Power Inc. (Ahunan) launched a corporate social responsibility (CSR) program dubbed “Tayo Na...

Economy

By Kyle Aristophere T. Atienza and Revin Mikhael D. Ochave, Reporters AN INVESTIGATION is underway over the “illegal” sugar importation order that was aimed...

Economy

By Diego Gabriel C. Robles THE PHILIPPINES now aims to become a high-income economy by 2045 at the latest, Socioeconomic Planning Secretary Arsenio M....

Economy

THE SY SIBLINGS remained the richest in the Philippines, despite a $4-billion drop in their net worth in 2022, according to Forbes Asia. The...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.