Transfer of PAF facilities to cost more than P800M

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Thursday, January 9, 2014

MACTAN Cebu International Airport Authority (MCIAA) will conduct a pre-bid conference on Jan. 15 for the P801.4-million relocation of facilities of the Philippine Air Force (PAF), which will be affected by the construction of a new passenger terminal.

MCIAA General Manager Nigel Paul Villarete said there are about 17 PAF facilities that need to be relocated.

The PAF facilities include hangars that are located inside the Mactan-Benito Ebuen Air Base, adjacent to the Mactan airport. These have to be rebuilt somewhere in the air base with the start of the airport expansion.


But the relocation of the PAF facilities will have a separate contract from that of the P17.5-billion MCIA expansion project.

Under its charter, the MCIAA also owns the 250-hectare Mactan-Benito Ebuen Air Base, occupied by PAF.

But then President Fidel Ramos issued an executive order retaining 150 hectares for military use. The remaining 100 hectares in the air base were developed by the Aboitiz Land into Mactan Economic Zone (MEZ) 2, which started operations in 1996.

Since the PAF military hospital was affected by the MEZ 2 development, MCIAA relocated the hospital at the cost of P60 million.


So far, the Department of Transportation and Communication has yet to announce the winner in the bidding for the airport expansion project.

Of the seven bidders, the consortium of Megawide-GMR Infrastructure submitted the highest bid of P14.4 billion.

Cebu Gov. Hilario Davide III said he is in favor of privatizing the Mactan airport because that would improve its services. He stressed that the MCIAA will retain supervision over the operations of the airport even if the terminals will be managed and operated by a private company.

The Public-Private Partnership Center website states that the MCIAA will continue to operate and maintain the airside facilities of the Mactan airport even if the terminal is privatized.


Davide noted that many efficient and well-maintained international airports abroad are run by private companies.

He said airport terminal fees are bound to increase.

“That is what you pay for convenience, efficiency, for the services you get from these operators. You pay for good service,” Davide said, adding that it is only natural for investors to get return on their investment.

Under the terms of the MCIA expansion and privatization project, the winning bidder will construct a new passenger terminal, and renovate and expand the existing terminal. It will also operate both terminals during the concession period of 20 years.

Published in the Sun.Star Cebu newspaper on January 09, 2014.

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