GMR to file technical bid for Philippines airport project

 

GMR Infrastructure, along with its partner Megawide Construction Corp, is all set to file technical bid for developing 17.5 billion peso ($425 million) Mactan-Cebu International Airport project in the Philippines, a senior company official has said.

GMR Infrastructure has three months to submit the bid documents as it was shortlisted in the pre-qualification bid.

"We will have to file technical bid first and later the financial bid for the project. We have three months time to submit the documents", the official told PTI.

All the seven groups who submitted the bid for the airport project were pre-qualified, according to reports in the Philippines media.

The financial bids will be opened on August 17 and a notice of award will be sent to the winner on September 17.

According to the bid document, the Mactan-Cebu airport project involves construction of a passenger terminal building with a capacity of eight million passengers per year. It also envisages renovation and expansion of the old facilities, installation of required equipment and operation of both the old and new facilities.

The successful bidder will be awarded a 20-year concession contract to operate, while the project will be developed in two phases at an estimated cost of 17.5 billion peso (the currency of Philippines).

MCIA is the second largest airport in the Philippines after Manila International Airport and had handled more than 6.2 million domestic and international passengers in 2011.

The airport is also a major gateway for various tourist destinations in central and southern provinces of Philippines.

The Philippines government is of the view that MCIA needs to expand the airport, especially since passenger traffic has grown by an unprecedented rate of 13 per cent for the last 10 years.
 
The Department of Tourism of Philippines anticipates 10 million tourists to visit the country by 2016.

GMR Infrastructure operates two airports in India -- Delhi International Airport and Hyderabad International Airport -- and Istanbul Sabiha Gokcen International Airport (ISGIA) at Istanbul in Turkey.

Last year, GMR, which has presence in roads, power and airports sectors, had to make an unceremonious exit from Male International Airport after that government cancelled its concession agreement.

Currently, the matter is pending before an arbitration panel.

GMR Infra shares are quoted at Rs 23.15 apiece, up 1.31 per cent on BSE during afternoon trade.