21 August 2020
Megawide Construction Corp. and partner GMR Infrastructure Ltd. of India hit a wall Wednesday when National Economic and Development Authority Investment Coordination Committee(NEDA-ICC technical Board) flagged down consortium's propose US$3 billion dollars investment for the rehabilitation, operation and development of Ninoy Aquino International Airport (NAIA) for 18 years.
NEDA noted a problem on the proposed financing plan as it does not show how Megawide consortium could adequately meet the Construction cost as well as the operating and maintenance costs requirements of the project.
Megawide said the funds will be provided by their partners GMR, but their proposal does not speak of joint liability.
“There are issues on financial capacity and the joint and several liability agreement of the consortium,” Transportation Undersecretary for Planning & Project Development Ruben S. Reinoso said.
“There appears to be a liquidity shortfall,” the Transport official said.
Reinoso disclosed he is meeting again with the proponent next week to discuss the outstanding issues raised by the NEDA-ICC and if this was complied already before it can continue talks on swiss challenge.
The Philippine Competition Commission (PCC) earlier approved the Aéroports de Paris SA’s (AdP) acquisition of a 49 percent-stake in GMR Airports Limited (GMR) valued at US$ 1.4 billion for its investment in the Philippines and Asia Pacific.
The transaction involve a 24.99% indirect stake purchase in GMR, plus another 24.01% direct acquisition of the firm.
Groupe ADP completed payment to GMR Airports of €532 million in July 2020. Part of this fund is expected to be earmarked for Manila airport offer.
What's the likelihood of this project being dropped, just like the the NAIA Consortium?
ReplyDeleteThere is no dropping because it is NOT AWARDED yet. They are still in the process of convincing the government that they can do it, with style.
DeleteHey I read the news of President Duterte pushing through the Sangley Airport project. He did not heed the call of the US to boycott Chinese companies involved in the South China Sea invasion as he said the project is important to the people and China will be one of the great economic ally.
ReplyDeleteI hope this project will be move forward and replace the Paliparan Pandaigdig ng Pilipinas. The Sangley will be the 新菲律賓國際機場 (New Philippine International Airport)
The President is correct. The Philippines long ceased to become a commonwealth of the US.
DeleteWhy don't we just leave NAIA alone. Continue the bandage measures that we have been implementing for years -_- . And close it down in at least 5 years as we focus our energy on Clark/NMIA/Sangley instead.
ReplyDeleteClearly to pave the way for Bulacan to thrive, then Sangley after.
ReplyDelete