Megawide-GMR denies conflict of interest charge

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Megawide-GMR denied the allegations about the issue of conflict of interest raised by Filinvest-Changi Airports consortium for the P17.5-billion Mactan-Cebu International Airport (MCIA) project.

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The company refuted the allegations describing it as yet another attempt by the losing bidder to exert undue influence and undermine the due process being followed by the Prequa-lification Bids and Awards Committee (PBAC), by seeking the disqualification of the Mega–wide-GMR consortium.

The Filinvest-CAI group earlier made allegations about the GMR groups’ capability to undertake the big-ticket project, which the company had satisfactorily answered before the PBAC.

Megawide-GMR submitted the best offer of P14.4 billion among all seven bidders for the MCIA project.

In a statement, GMR Group said that, “The Filinvest-CAI partnership has made it a practice to raise one irrelevant and unfounded issue after another in a desperate attempt to win the PPP [public-private sector partnership] project in the pre-award verification stage.”

“We are convinced the allegations of conflict of interest are mischievous in nature and are clearly aimed at unduly influencing the outcome of the bidding process and pre-empting the post-qualification process currently being conducted by the Department of Transportation and Communications [DOTC]. We strongly believe that the actions of Filinvest-CAI are a clear violation of Section 11.c of the Instructions to Bidders,” it said in a press statement.

No decision yet
The DOTC said on Friday that the agency is still on the process of reviewing the issue of conflict of interest for the MCIA project and has no decision yet.

“Still ongoing, wala pang [there is still no]final decision,” said Michael Arthur Sagcal, spokesperson of DOTC, in a text message to The Manila Times.

The MCIA is the Philippines’ biggest PPP project to date.

In a letter dated January 2, 2014, Filinvest Development Corp. (FDC) raised the conflict of interest violation allegedly committed by GMR-Megawide Consortium—composed of GMR Infrastructure Ltd. (GMR) and Megawide Construction Corp.—and the First Philippine Airports Consortium, which includes Malaysia Airports Holdings Berhad (MAHB).

Megawide-GMR of India offered the highest bid for the MCIA project, while First Philippine Airports Consortium-MAHB offered one of the lowest bids.

In a statement, president and chief executive officer of FDC, Josephine Gotianun Yap, said that, “One of the conflict of interest provisions prohibits a board member or partner of a bidder, consortium member or its affiliates from being directly involved in any capacity in the MCIA bid process for another bidder, consortium member or its affiliates.”

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