A GROUP of traders on Monday urged the Supreme Court to stop the rehabilitation and expansion of the Mactan Cebu International Airport (MCIA) by GMR-Megawide Cebu Airport Corp., which won the P14.4 billion deal.
In an 11-page petition for certiorari, Business for Progress Movement also requested the High Court to halt the turnover of the operations and maintenance MCIA to GMR-Megawide.
The group, represented by President Medardo Deacosta Jr., argued that the project should not push through because GMR Megawide “has no financial capacity to undertake the rehabilitation and expansion of the [MCIA]”.
GMR Megawide is a consortium of local firm Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd.
The group said that great and irreparable injury would result once the project is awarded to the corporation.
“There appears a clear and present danger that the instant petition… will be rendered nugatory and ineffectual, and that the highest interest of justice will not be served if [the]act complained of —that is, the immediate turnover of the operations of MCIA to [GMR-Megawide] would not be enjoined,” the document read.
The group questioned the financial capacity of the corporation to push through with the project.
“Since [GMR-Megawide] has no financial capacity to start the rehabilitation of MCIA, both [DOTC and GMR-Megawide] had come up with the scheme of imposing an increased rate of terminal fees to cover the operating costs and expansion of the project,” it averred.
“Petitioner also learned that . . . [GMR Infrastructure] had to raise funds through asset sale, equity issue and to divest a few road and power plants in order to pay its corporate debts,” it added.
On April 22, the Department of Transportation and Communication (DOTC) inked a concession deal with GMR-Megawide for the construction of the new MCIA passenger terminal beginning January 2015 up to January 2018. The consortium’s bid for the project was P14.40 billion.
Under the 25-year deal, GMR-Megawide will also develop and expand the present passenger terminal, which is expected to be completed by 2019.