OSMEÑA QUESTIONS PPP ANNOUNCEMENT

Senator Serge Osmeña today chided Public Private Partnership (PPP) program Executive Director Cosette Canilao for preempting the Department of Transportation and Communication (DOTC) in relation to the awarding of the 25-year expansion and management of the Mactan Cebu International Airport (MCIA) project.

Osmeña, Vice Chairman of the Senate Committee on Public Services looking into the questionable bidding process undertaken by the DOTC for the MCIA venture, questioned the announcement made by Canilao that the GMR-Megawide consortium was the winning bidder.

"It is highly irregular that Ms Canilao has taken it upon herself to speak with authority that the DOTC is set to award the project to GMR-Megawide before the end of the month, even prior to the PBAC's submission of its findings and recommendations to the MCIAA Board," Osmeña said.

He pointed out that the final approving authority for the airport expansion project is the MCIAA board, which will decide based on the recommendations made by the DOTC- Prequalification Bids and Awards Committee (PBAC).

"The PBAC is only a recommendatory body and the PPP is, in fact, not even a voting member!" Osmena added.

In the recent Senate hearing, DOTC representatives said that the PBAC was still in the process of studying the conflict of interest issue raised by Filinvest-Changi to determine if GMR-Megawide should be disqualified or not, in accordance with the bid rules.

Filinvest raised the conflict of interest violation as it disclosed that the director and partner of GMR's airport affiliates is also the managing director of another bidder. Bidding rules clearly prohibit directors and partners of a consortium member, as well as its affiliates, from being actively involved in the bid of another consortium.

"This and many other points about GMR's questionable financial standing and operating record and its tie-up with Fraport still have to be resolved. And here's the PPP Executive Director jumping the gun on those authorized to speak about the awarding of the bid!" Osmeña said.