Flawed from the startl! MIAA slams door on Saavedra’s appeal to save Megawide’s NAIA rehab proposal

Bilyonaryo Edgar Saavedra has lost his bid to regain Megawide Construction’s original proponent status in its P109 billion proposal to rehabilitate the country’s busiest airport.

The Manila International Airport Authority (MIAA) board voted on 14 January 2021 to deny the motion for reconsideration filed by Saavedra to reinstate Megawide’s OPS for the Ninoy Aquino International Airport (NAIA) modernization which it revoked a month earlier.

The nine-member MIAA board punched holes on Saavedra’s justification to restore Megawide’s OPS granted in July 2020.

Based on the resolution obtained by BILYONARYO, MIAA cited three reasons why Saavedra’s Megawide did not deserve to get back its OPS:

* The board cannot recognize the documents submitted by the Megawide consortium (specifically its partnership with an Indian conglomerate sealed last December) because it would raise legal issues under the Build-Operate-Transfer (BOT) Law since these were “belatedly submitted.”

* Megawide’s motion for reconsideration could no longer remedy the financial deficiency of Megawide and its lack of documentation as noted by the Investment Coordinating Committee of the National Economic and Development Authority (ICC-NEDA).

* Megawaide’s motion for reconsideration “averred reasons which should have been been addressed at the very beginning upn submission of the consortium’s original proposal.”

MIAA revoked Megawide’s OPS after Finance Secretary Sonny Dominguez, head of the ICC-NEDA, questioned the firm’s financial capacity to bankroll the project – it only has P18 billion in equity as of December 2019 or way below the P32.3 billion required for the NAIA project.

In his November 19 letter, Dominguez also trashed Saavedra’s offer to raise more cash through the issuance of preferred and treasury shares to make up for its lack of capital.

“(These) are not guaranteed to materialize…the financial capability of Megawide is mostly hinged on uncertain sources. More importantly, the requirement under the BOT (Build Operate Transfer) Law and its IRR (implementing rules and regulations) is to establish the financial capacity at the time of submission of the proposal,” said Dominguez in a letter exclusively reported by BILYONARYO.

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