 "GMR, Hyderabad International Airport")
The Supreme Court of Philippines has upheld the decision of the Department of Transportation and Communications (DoTC) to award the Mactan-Cebu International Airport project to the GMR Infrastructure Limited (GMR) and Megawide Construction Corporation (MCC) consortium.
The decision – endorsed by Chief Justice of Philippines – has denied the April 2014 petition by a senator to stop the awarding of the contract citing a lack of merit. It also denied a separate petition by the Business for Progress Movement for lack of legal and factual bases.
The court’s decision clears any overhang that existed and paves the way for expeditious implementation of the modernisation and expansion project for Cebu airport, the company said in a press release on Tuesday.
“There being no violation of any law, regulation or the bidding rules, nor any arbitrariness or unfairness committed by public respondents, the presumption of regularity of the bidding for the MCIA Project must stand," the release quoted the court order. Commenting on the development, GMR Infrastructure spokesperson said, “We welcome the Supreme Court judgment. It clears any confusion or misconception about the process of airport modernisation. This decision reinforces our position as a credible and financially strong airport operator.
The decision will also boost the confidence of foreign investors in the PPP (public-private partnership) programme of the government of Philippines and comes at an opportune time when the five regional airports are being bid out, in which GMR is also participating.”
The consortium won the contract for expansion and modernisation of the airport on build–operate–transfer (BOT) basis for 25 years. The airport concession operates on a clear dual till with aero tariffs fixed under the concession with the airport entity having no cross subsidy from other revenues.
The company said it has brought in operational best practices, which have significantly enhanced passenger experience and improved airport performance resulting in double digit traffic growth. Financially, the airport has reported a healthy earnings before interest, tax, depreciation and amortisation (Ebitda) of 66 per cent for calendar year 2015 and figured in the top airports ranking for the first time in its history.
The order also provides a boost to the consortium, which is in the race to bid for the five regional airports in Philippines.
The GMR Group owns and operates India’s Delhi Airport, presently ranked the World’s No. 1 airport in its passenger category, as well as the Hyderabad airport, which has consistently been ranked among World’s top three airports in its category over the past seven years.
GMR Megawide Cebu Airport Corporation (GMCAC) won the 25-year concession to rehabilitate and manage terminal operations at the Mactan Cebu International Airport (MCIA), including the construction of a second, bigger terminal, T2. The company took over management of the MCIA passenger terminal and other areas on November 1, 2014.
The decision – endorsed by Chief Justice of Philippines – has denied the April 2014 petition by a senator to stop the awarding of the contract citing a lack of merit. It also denied a separate petition by the Business for Progress Movement for lack of legal and factual bases.
The court’s decision clears any overhang that existed and paves the way for expeditious implementation of the modernisation and expansion project for Cebu airport, the company said in a press release on Tuesday.
“There being no violation of any law, regulation or the bidding rules, nor any arbitrariness or unfairness committed by public respondents, the presumption of regularity of the bidding for the MCIA Project must stand," the release quoted the court order. Commenting on the development, GMR Infrastructure spokesperson said, “We welcome the Supreme Court judgment. It clears any confusion or misconception about the process of airport modernisation. This decision reinforces our position as a credible and financially strong airport operator.
The decision will also boost the confidence of foreign investors in the PPP (public-private partnership) programme of the government of Philippines and comes at an opportune time when the five regional airports are being bid out, in which GMR is also participating.”
The consortium won the contract for expansion and modernisation of the airport on build–operate–transfer (BOT) basis for 25 years. The airport concession operates on a clear dual till with aero tariffs fixed under the concession with the airport entity having no cross subsidy from other revenues.
The company said it has brought in operational best practices, which have significantly enhanced passenger experience and improved airport performance resulting in double digit traffic growth. Financially, the airport has reported a healthy earnings before interest, tax, depreciation and amortisation (Ebitda) of 66 per cent for calendar year 2015 and figured in the top airports ranking for the first time in its history.
The order also provides a boost to the consortium, which is in the race to bid for the five regional airports in Philippines.
The GMR Group owns and operates India’s Delhi Airport, presently ranked the World’s No. 1 airport in its passenger category, as well as the Hyderabad airport, which has consistently been ranked among World’s top three airports in its category over the past seven years.
GMR Megawide Cebu Airport Corporation (GMCAC) won the 25-year concession to rehabilitate and manage terminal operations at the Mactan Cebu International Airport (MCIA), including the construction of a second, bigger terminal, T2. The company took over management of the MCIA passenger terminal and other areas on November 1, 2014.
