Megawide loses original proponent status for NAIA-1 rehab

The Manila International Airport Authority (MIAA) has revoked the original proponent status (OPS) of Megawide Construction Corp. and its Bangalore-based consortium partner GMR Infrastructure Ltd. for the rehabilitation of Ninoy Aquino International Airport (NAIA).

In a letter addressed to Manuel Ferrer, authorized representative of Megawide-GMR consortium, the MIAA said the airport authority’s board “resolved for the revocation of the OPS earlier granted to Megawide Construction Corporation for its unsolicited proposal for the NAIA Comprehensive Capacity Enhancement project.”

The MIAA Board board came up with the decision after a board of directors meeting held on December 4, 2020 and a subsequent meeting on December 15, 2020.

While the letter did not provide reason for the OPS revocation, reports have been circulating later this year that the consortium supposedly failed to meet financial capability requirements to take on the project.

Megawide, along with its partner GMR Infrastructure Ltd., was granted the original proponent status (OPS) for the NAIA rehabilitation in July, after talks with the NAIA Consortium -- made up of several of the country's largest conglomerates -- collapsed.

The $3-billion unsolicited proposal of the Megawide consortium was submitted in March 2018, but was set aside in favor of the NAIA Consortium whose proposal was received by the government first.

Its updated proposal is pegged at P109 billion under a 25-year concession period, with the construction to be done in three phases -- the improvement of airside congestion and terminals and the connection via bus rapid transit; the construction of a new terminal and additional taxi lanes; and the construction of an elevated railway.

An OPS gives the proponent the right to match potential competing offers for an unsolicited proposal through a Swiss Challenge.

The company earlier said is optimistic that the Swiss Challenge for the project could be completed by March 2021.

Motion for reconsideration

In a separate, statement, Megawide confirmed that the MIAA announced the revocation of the partnership of Megawide and GMR Infrastructure’s original proponent status regarding its P109 billion proposal to rehabilitate and transform NAIA.

“At a time of deep economic crisis, the Filipino people today received a devastating blow against progress,” Megawide said.

“A critical step towards the Philippines’ national economic recovery was delayed further by vested and corrupt interests who have spent millions in trying to bring down the only capable and qualified player,” it said.

“Megawide-GMR will immediately file a motion for reconsideration for its proposal.”

The company also maintained that it has complied with all requirements and interpretations of the government for its unsolicited proposal.

“There are no justifiable grounds to deny the Filipino people a transformed NAIA,” Megawide stressed. -NB, GMA News