SC asked to stop Mactan airport expansion

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MANILA, Philippines—A business group on Monday asked the Supreme Court to stop the rehabilitation and expansion of the Mactan Cebu International Airport (MCIA) by the GMR-Megawide Cebu Airport Corporation, the consortium that won the multi-billion contract
In an 11-page petition for injunction, the group Business for Progress Movement through its president, Medardo Deacosta Jr., urged the high court to stop GMR-Megawide from proceeding with the expansion and rehabilitation of the airport as well as turn-over of its operation.
The group said GMR, the Bangalore, India-based partner of Megawide “has no financial capacity to undertake the rehabilitation and expansion of the (MCIA).”
It pointed that the company even had to resort to implementing an increase in the public service charge/terminal fees to fund the rehabilitation and expansion of the airport.
It added that GMR even resorted to selling of its assets to pay its corporate debt.
It also that GMR’s revenues were badly affected when the government of the Republic of Maldives canceled the company’s $500 million contract to upgrade the Male Ibrahim Nasir International Airport.
The government of Maldives awarded the contract to GMR in 2012 but unilaterally terminated the agreement in 2012.
“The above-mentioned circumstances put in serious doubt the financial capability of GMR-Megawide to start the rehabilitation and expansion of the MCIA. Since it has no financial capability to commence the rehabilitation of the MCIA, the DOTC and GMR-Megawide then come up with the scheme of imposing an increased rate of terminal fees to cover the expansion project and operating costs,” the petition signed by the group’s president, Medardo Deacosta Jr.
The government, through the Department of Transportation and Communication (DOTC) concession agreement with GMR-Megawide, was supposed to be for the construction of the new MCIA passenger terminal beginning January 2015 up to January 2018.
Under the 25-year concession agreement, GMR-Megawide shall also develop and expand the present passenger terminal, which is expected to be completed by 2019.
The Mactan Cebu International Airport Authority (MCIAA) is proposing the increase in terminal fees for domestic passengers from the present P200 to P300 and from P550 to P750 for international travelers.
Of the amount to be shelled out by domestic travelers, at least P181 would go to consortium with the MCIA getting P76.40.
For the proposed international terminal fee, P353 would go to the consortium and P143.80 to the MCIA.


Source: INQUIRER


Now imperial manila just don't want us to get ahead of them.

[Graffitivoir]

It pointed that the company even had to resort to implementing an increase in the public service charge/terminal fees to fund the rehabilitation and expansion of the airport.

Maorag dili pud ni maayo,
bantay lang usa ta ining mga tawhana, kaila ra ba gyud ko ini nila,
puwerte kayo sa istorya unya wala diay ika-suporta, dili ra ba sab ni sila kamao maikog o mamakak.
Ang problema ana kay kung nahuman na ang cashabotan, lutoon na ta sa atong kaugalingong mantika ini.

[bleedingboi]

Kinsa ila gusto i-puli nga contractor? Hilmarc?

Nutheads from Manila, please mind your own business. Stop neglecting your own dirty backyard.

[egoy90]

kinsa na pod kahay nagpaluyo nga politiko aning mga nagreklamo nga bussiness group ai.

[slakker]

klaro na kaayo samot ka sourgrapes...

[C'thulhu]

Well, ning mahal na bya ang terminal fee... Domestic is 300, International 750 na... Mas mahal pa ts sa Manila...

Ang naka parat ani, since gi palit mani ang terminal, nganu ari man sa pasahero i hapak kung kulang ang income sa MCIAA? Paki explain nga...

[agbesanez]

I think dili ni maayo nga move sa governo da.... ato lang ni bantayan....