Megawide told to address issues on NAIA rehab plan

Megawide, a listed engineering company and airport operator, announced last month that it received the original proponent status for the development of the NAIA after government negotiations with a super consortium of conglomerates bogged down.

MANILA, Philippines — Several concerns and issues have to be addressed first before the unsolicited proposal of the group of Megawide Construction Corp. and India’s GMR to rehabilitate the Ninoy Aquino International Airport (NAIA) can push through, according to the Department of Transportation (DOTr).

“There was a deliberation yesterday and the National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC) technical board noted a number of pending compliance with certain requirements of the Build-Operate-Transfer Law. So we have conveyed that to the proponent and we asked them to comply,” Transportation Undersecretary for planning Ruben Reinoso said.

“Basically, these are the issues on financial capacity and joint and solidary liability agreement of the consortium. So those are basically the outstanding issues,” Reinoso said.

Megawide, a listed engineering company and airport operator, announced last month that it received the original proponent status (OPS) for the development of the NAIA after government negotiations with a super consortium of conglomerates bogged down.

Megawide and GMR of India in 2018 submitted a $3-billion unsolicited proposal to upgrade and rehabilitate the NAIA.

The government, however, awarded the OPS to a consortium of seven conglomerate composed of Aboitiz InfraCapital Inc, AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., Metro Pacific Investments Corp., and JG Summit Holdings Inc.

The OPS now gives Megawide the advantage once a Swiss Challenge is undertaken for the project.

Manila International Airport Authority assistant general manager Elenita Fernando said a definite schedule as to when the Swiss Challenge would take place could not be determined at the moment as negotiations are still taking place.

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Article and Photo originally posted by Phil Star Global last August 21, 2020 12:00am and written by Richmond Mercurio.