P14B Megawide premium may fund airport projects

An official representing the Mactan Cebu International Airport Authority (MCIAA) made a call for support to retain in Cebu the P14.4 billion premium given by GMR Megawide Consortium to the Department of Transportation and Communication (DOTC).

Retaining the fund in Cebu has been an issue after representatives from both the private and public sectors encouraged the MCIAA board to tap the P14.4 billion fund instead of increasing the airport’s terminal fees during yesterday’s second public hearing of the proposed increase.

“We got a lot of commitments already for support, and we are urging more people to help us rally for this. The board needs more support,” said MCIAA legal counsel Glen Napuli.

Cebu City Councilor Noel Archival, who attended the hearing at the Waterfront Airport Hotel and Casino Mactan, said the MCIAA board should fight to retain the fund in Cebu and use it to implement the airport projects instead of increasing the terminal fee.

Lawyer Jose Bernas, who represented Sen. Sergio Osmeña III, said the MCIAA  should review its authority over the P14.4 billion fund.

Nigel Paul Villarete, MCIAA general manager, said that the fund is deposited under the MCIAA account in the Land Bank of the Philippines in Lapu-Lapu City.

But this money cannot be used until GMR Megawide Cebu Airport Corp. (GMCAC) starts construction of the Terminal 2, which is scheduled in January, said Napuli.

“Of the amount, we also need to retain at least P250,000,” said Napuli.

However, that is only if the DOTC will approve that the money remains in Cebu as what local stakeholders would like to happen.

The MCIAA board wants to have at least 75 percent of the amount to remain for more investments in the airport not covered by the GMCAC.

BACKING

Alice Queblatin, Tourism Congress vice president for travel and tour sector in the Visayas, said they will submit their position paper to support the MCIAA board on their call to retain the fund.

“Also we would like to emphasize that tourists don’t really mind paying a hundred or two hundred pesos as long as they see the value for their money. It’s understandable that people are questioning the increase now because they have not seen the improvements yet. But start showing them improvements and start walking your talk, and I’m sure they would be willing to pay,” said Queblatin.

She also asked the MCIAA to do the rate increase in two tranches – P250 or a P50 increase for domestic travelers, and P650, a P100 increase for international travelers.

overdue

Villarete again reiterated the increase is overdue and provided for by law.

With the proposed increase of P100 for domestic travelers and P200 for international travelers, the MCIAA earns around P300 million, which Villarete said they will first use for the taxiway overlay that will cost P325 million and the runway overlay that cost P255 million.

Other projects have also been identified as priority for implementation within the next five years like upgrading of various lighting or backup system, purchase of a trauma van, and SITC of LED taxiway centerline lighting system.

Villarete said during the  hearing that the increase is needed because after the GMCAC takes over the operations of the airport terminal, the Mactan airport’s authority’s revenue stream will go down from P1.5 billion a year to P500 million a year which will only be enough to cover salaries of employees under the MCIAA.

Villarete encouraged everyone who wants to give suggestions and feedback to submit their position papers before October 10.

“The board meeting is set on October 10 and the board will base the final decision on the position papers, output of the hearings and the focus group discussions,” he said.

Napuli said that they will then publish the decision for implementation 15 days later.

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