The Department of Transportation (DOTr)said it may reconsider the proposal of Megawide Construction Corp.- GMR Infrastructure to rehabilitate the Ninoy Aquino International Airport (NAIA) just days after the Manila International Airport Authority (MIAA) revoked its original proponent status (OPS).
This comes as MIAA yesterday revealed that San Miguel Corp. and the Philippine Airport Ground Support Solution Inc. have earlier submitted their own proposals to rehabilitate NAIA.
But Ed Monreal, MIAA general manager, said the government has not started discussions with either.
SMC MIAA said the revocation of the OPS was due to Megawide-GMR’s failure to meet the equity financial requirements to fund the 25-year concession.
But at a Senate hearing yesterday, DOTr Secretary Arthur Tugade said the agency it will discuss the possible lifting of the revocation of Megawide’s OPS at the next MIAA board meeting before the end of the year.
The DOTr will consider the motion of reconsideration to be filed by Megawide-GMR in the decision.
“We will discuss the decision made on December 15 recognizing the procedural rights of the undertaking being done by Megawide,” Tugade told the hearing.
Megawide-GMR had said it complied with all requirements on its unsolicited proposal.
At the hearing, Megawide chairman Edgar Saavedra said the company has enough equity to fund the P108.75-billion project which will be financed by 70 percent debt and 30 percent equity.
The 30-percent equity which is equivalent to P32.63 billion will be funded 60 percent by Megawide and 40 percent by GMR, at P19.58 billion and P13 billion, respectively.
Megawide recently raised P1.58 billion to increase its equity and meet the government’s equity requirement. At the end of 2019, it had P18 billion in equity.
Megawide and GMR first submitted a proposal for the rehabilitation of NAIA in 2018. Five months ago, after nearly two years of failed discussions with several of the Philippines’ largest conglomerates, Megawide was asked by the DOTr to consider resubmitting a proposal for the rehabilitation of NAIA.