MPIC seeks new partner for airports PPP

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) is looking for a new foreign partner for the regional airports public-private partnership (PPP) deal as its French partner pulled out of the consortium after the government decided to unbundle the project.

 “Our foreign partner has notified us that they’re pulling out of the airports because the unbundling resulted in the individual airport being too small. If they win just one of the smaller airports, it would place them in a difficult situation because they would not be able to get the returns they need and at the same time (it would be) difficult to operate. Rather than take that risk, they decided to withdraw,” MPIC president and CEO Jose Ma. Lim said in a briefing.

The regional airports project covers the financing, design, construction, operation and maintenance of the Bacolod-Silay, Davao, Iloilo, Laguindingan and the New Bohol (Panglao) airports.

When it was rolled out under the Aquino administration, it was offered in two bundles, with Bundle 1 composed of the Iloilo Airport and Bacolod-Silay Airport, and Bundle 2 covering the Davao Airport, New Bohol (Panglao) Airport and the Laguindingan Airport.

The current administration has decided to unbundle the five airports to expedite completion of PPP selection and award.

The Philippine Airports Consortium composed of MPIC and foreign partner Aeroports de Paris, is among the groups pre-qualified by the previous administration to bid for the regional airports project.

Other pre-qualified groups to bid for the project are Maya Consortium, GMR-Megawide Consortium, San Miguel Holdings Corp.-Incheon International Airport Corp. Consortium, and Filinvest-JATCO-Sojitz Consortium.

With Aeroports de Paris out of the consortium, Lim said MPIC has started to approach other foreign firms.

While MPIC is looking at all the five regional airports, he said the infrastructure conglomerate may not bid for all five.

 “We would look at all of them. But of course, some are larger than others. Davao being by far the most attractive. Then, next would be Iloilo,” he said.

He also said MPIC intends to have a single partner for the airports it would bid for, should it decide to pursue participation in the bidding process.