Filipino SC upholds award of Cebu airport project to GMR

Filipino SC upholds award of Cebu airport project to GMR
Highlights

In significant development, the Supreme Court (SC) of Philippines has upheld the decision of the Department of Transportation and Communications (DoTC) to award the Mactan-Cebu International Airport project to the consortium of GMR Infrastructure Limited (GMR) and Megawide Construction Corporation (MCC).

Hyderabad: In significant development, the Supreme Court (SC) of Philippines has upheld the decision of the Department of Transportation and Communications (DoTC) to award the Mactan-Cebu International Airport project to the consortium of GMR Infrastructure Limited (GMR) and Megawide Construction Corporation (MCC).

Citing lack of merit, the decision endorsed by Chief Justice of Philippines, has denied the April 2014 petition by Senator to stop the awarding of the contract. It also denied the separate petition filed by the Business for Progress Movement for lack of legal and factual bases.

The Philippines apex court’s decision, which was announced by the Supreme Court Public Information Office, cleared any hurdles that existed on GMR-led consortium and paved the way for expeditious implementation of the modernisation and expansion project for Cebu airport.

“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 apex court said in its judgment. A GMR Infrastructure spokesperson welcomed judgment, saying it cleared any confusion or misconception about the process of airport modernization.

“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 program 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 spokesperson added.

GMR Infra-led consortium won the contract to expand and modernize Mactan-Cebu airport on BOT basis for 25 years. GMR has brought in operational best practices, which have significantly enhanced passenger experience and improved airport performance resulting in double digit traffic growth.

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