Development of Mactan-

Cebu International Airport

PPP Delegation
presentation
15th August 2015
Joint Venture Partners
Government & Private Sector
Partnership
Megawide is one of the leading construction
firms in the Philippines

• Publicly listed at the Philippine

Stock Exchange since 2011
• Employs the most advanced
construction systems and
technologies today
 Megawide Projects

SHANG SALCEDO
PLACE
BENCH TOWER

JAZZ RESIDENCES PHASE 1

Partnered with Government for Education PPP

PPP FOR SCHOOL

INFRASTRUCTURE PROJECT
PHASES 1 & 2

REGIONs I, II, III, IV-A and

CAR

9,586 CLASSROOMS
 Undertaking PPP with the Department of Health

MODERNIZATION OF THE
PHILIPPINE ORTHOPEDIC CENTER
MANILA
 GMR Group – An Indian Infrastructure Leader

• India’s premier infrastructure player • 3 Airports

• Founded in 1978 by G.M. Rao • 9 Highways Projects
• Entered infrastructure space in 1994 • 11 Power Projects
• Listed on BSE/ NSE in 2006 • 3 Coal Blocks
• 2 Power Transmission Projects

Airports Energy Highways SEZs

Operating Assets: Operating Assets: Operating Assets: Assets Under Development:

• Delhi International Airport: India's
busiest
• Hyderabad International Airport:
India's first greenfield
• Mactan-Cebu International Airport
Asset Under Construction:
• Real estate portfolio of the airports
• 7 assets with 1136 MW capacity
• Coal mines in India and Indonesia
• 2 Transmission projects and power
trading
Assets Under Construction:
• 5 projects with 7,298 MW capacity
• 8 Operating highways – 701 kms • Krishnagiri SEZ (Tamil Nadu)
• Kakinada SEZ (Andhra Pradesh)
Assets Under Construction:
• 1 Highways 29 kms

Value Creation Process Enriched by the Experience of a Diverse Infrastructure Portfolio

Bidding
Strong competitive bids
for projects
Different style and
motive of bidding
Approvals & Competence Building Funding Project Execution Operations & Growth
Clearances
Bankable documents & Nurturing & developing Ability to raise equity & Able to deliver projects Operating & managing
obtaining clearances successful partnerships finance in time, cost & quality assets for sustainable
standards growth & profits
Excellent co-ordination Effective stakeholder Relationships with all
with government management major banks Local & on-ground Streamline operations to
agencies for clearances understanding meet global practices
In-house expertise and standards
Hyderabad International Airport
Delhi International Airport
Delhi International Airport T3 Positioning

1 Dubai T3 – 1,500,000 m²

2 Beijing T3 – 986,000 m²

3 Hong Kong T2 – 570,000 m²

4 Bangkok Suvarnabhumi – 563,000 m²

5 Mexico City T2 – 548,000 m²

6 Delhi T3 – 502,000 m²

7 Madrid T4 – 470,000 m²
Sabiha Gokcen New Terminal Landside View
Male’ International Airport, Maldives

13
PPP Economic Value
PPP as an Advocacy
 Philippines PPP Framework

 Cornerstone of the Governments economic development programme.

 Partnership between Government and Private Sector to deliver economic assets and
growth.

 Risk partnership which minimizes Government costs yet maximizes returns for
Investors through a regulated and well defined framework.

 Public sector benefits through faster project development and implementation.

 Atlanta Hartsfield Airport

Economic Contribution
• Terminal area of 5.7m square feet.
• 146 domestic & 28 International Gates.
• 5 Runways.
• 92m passengers annually.
• Labour payroll (direct & indirect est $3.1b) .
• Direct and indirect economic impact $6.2b.
• Total regional economic impact is $23.4b.

21
Our Mission & Our
Journey in
The PPP Context
 Consortium emerged as the highest winning bidder for
the Mactan-Cebu International Airport Project

Mactan Cebu Airport PPP project is for

development and management of the airport for
25 years… …and the GMR – Megawide consortium emerged
the highest financial bidder in a closely
contested bid process.
• Construction and operation of Passenger terminals
(existing & new)
Bidder PHP millions US$ millions1
• Construction and operation of aprons (existing and new)
GMR-Megawide 14,404.57 326
• All landside facilities including car park
Filinvest - Changi 13,999.99 317
• Ground Handling, Into Plane, In flight Catering

• Development and Operation of commercial assets SM - Zurich 12,500.09 283

• Providing security excluding anti-sabotage, anti-hijacking MPIC - JG Summit 11,230.00 254

and law & order

• Aircraft parking bays allocation AAA 11,088.89 251

San Miguel -
• Utilities for the areas under concessionaire 9,050.00 205
Incheon

First Philippine 4,700.00 106

United Airport, Burbank 1931
Same Objective, Different View
Same View, Different Objective
Amsterdam Schiphol Airport
Dubai International Airport

Dubai Duty Free Wins “Best Airport Travel Retailer of the Year” and “Best New Shop
Opening” at DFNI Global Awards for Travel-Retail Excellence
Las Vegas McCarran Airport
Cebu’s Positioning….
Airport Revenue Streams

Lets not forget that an airport is a business…

Aeronautical

Airline Revenues

66.7% Non-Aeronautical

Retail Revenues

Innovation
29.9%
Marketing,
Advertising

3.4%
 Airport Customer Base

But it’s a business that serves the needs of the economy & public…..

Airlines Concessionaires Passengers

Airport Product = User Experience

Being the gateway for tourists and travellers, we are an
integrated part of the tourism ecosystem…

Airlines

Local Resort’s &

Government Hotel’s

Tourism Ecosystem

Airport
Tour Operators
Operator

Department of
Tourism

Our specific role in the tourism ecosystem is driven by the specific context
of tourism & business development.
 Strategic Initiatives

 Develop Mactan-Cebu International Airport as a Hub serving the Visayas and

Philippines such that Mactan-Cebu International Airport becomes the international
Gateway to the Southern Philippines.

 Develop direct international traffic with existing international airlines and airlines
serving Manila.

 Work with Local Government to develop surrounding facilities to meet the traffic
forecast and growth of passengers and cargo.

 Bed capacity and facilities

 Tourism destinations
 Domestic connectivity (air, road & sea)
 Surface access capacity within Mactan & Cebu (roads)
 In-town facilities for passenger convenience (check-in)
Islands in the middle of nowhere…

39
 The initial capital expenditure for the project is
spread over 2 phases.

Phase 1 (4 years)

Renovation and Renovation and

Aprons in Construction of
expansion of expansion of
front of T2 T2
T1 T1

12 months from 18 months from 36 months from 48 months from

Construction start Date Construction start Date Construction start Date Construction start Date

• Washrooms (CR’s) • Construction of • Design to ensure • Renovation &

• Lighting & Ceilings
• New Seats
• Common Gates
• Tourist Arrival Counters
• Retail and F&B
• Signage
• Central Screening
• User Requirements
Aprons in front of T2 Service Level C for expansion to ensure
designed to serve at International Traffic for Service Level C for
least 90% of the 10th Year of Contract Domestic Traffic for
annual international • Total area planned of 10th Year of Contract
flights through contact • New floor area
43,398 sqm
stands planned of ~7,800 sqm
• 6 contact gates
to reach total of
46,362 sqm
• 6 contact gates

This investment plan will be complimented by the efforts of the Govt.

to ensure adequate capacity for airside facilities (including runways)
45 45
The capital expenditure for the project is spread
over 2 phases.

Phase 2 onwards

Capacity
Augmentation

As per pax growth

• As and when required

to meet service
standards in line with
traffic growth

This investment plan will be complimented by the efforts of the Govt.

to ensure adequate capacity for airside facilities (including runways)

46 46
 Terminal 1
Improvements
(Phase 1)
Departure Level Upgrades
Arrival Level Upgrades
Meeters & Greeters Area
New Domestic Initial X-ray
New Domestic Security Check
New Domestic Departures
 Terminal 1
Improvements
(Phase 2)
 Terminal 1 Works (Phase 2)
• Installation of ARINC CUPPS Systems (June 2015)
• Check-In Computers / Printers
• FIDS & Check-In Displays
• Level 3 In-Line Screening (June 2016)
• International Departures reconfiguration (November 2015)
• Washroom refurbishment & expansion (August – November 2015)
• New Terminal seats (Domestic) (September 2015)
• Extension of 3 Domestic Arrival belts (November 2015)

• Replacement of all baggage conveying lines (February 2016)

vMUSE – agent assisted common use system (CUPPS)

 On vMUSE main screen, click on

your airline button to access login
page and application

© 2015 Rockwell Collins. | 56

All rights reserved.

56
vMUSE – agent assisted common use system (CUPPS)

© 2015 Rockwell Collins. | 57

All rights reserved.

57
Previous Check-In Flight Information
New Check-In Flight Information
SelfServ – Common Use Self Service Check-in System
(CUSS)
• CX, KE, 5J, PR

© 2015 Rockwell Collins. | 60

All rights reserved.
Self Service Kiosks
VeriPAX – Boarding pass validation with automated gate

• Validate BP at security check point

• Perform flight check
• Perform terminal check

© 2015 Rockwell Collins. | 62

All rights reserved.
 BagScan – Baggage Reconciliation System

• Reduce mishandled bag through tracking

• Reduce offload time
• Ensures baggage is accompanied by its
pax
• Ensures bags are loaded onto correct flight
and container/ hold

© 2015 Rockwell Collins. | 63

All rights reserved.
 AirVue – Flight Information Display System

© 2015 Rockwell Collins. | 64

All rights reserved.
INT Departure level Modifications
Overall International Departures Renovation Plan
International Departures Multi-Retail Unit Plan
International Departures Multi-Retail View 1
New Central Security Zone
New Departures Immigration Zone
Retail Seating
CBTL Café View
Plaza Premium International Lounge Layout
Plaza Premium International Lounge Interior
Design Inspiration Bar Area
Design Inspiration Dining Area
Design Inspiration Live Cooking Area
Toilet Modification @ Departure
Toilet Conversion Toilet Block Toilet Block
to Female Toilet Expansion Expansion

Toilet Block Toilet Block Toilet Block Toilet Block

Expansion Expansion Expansion Expansion
Toilet Modification Plan Arrival

Toilet Block Toilet Block

Toilet Block
Expansion Expansion
Expansion
Boarding Gate View
Ladies Washroom
Gents Washroom
New Terminal Seating September 2015
 Terminal 2
Design
Considerations
Airport Retail Concepts – 1970’s

85
Terminal Design Considerations

86
Hong Kong Airport

87
San Francisco Airport

88
Paris CDG

90
 Courchevel

Runway altitude at the French Savoy ski resort of Courchevel

ranges from 1941m to 2006m. Slope reaches 18.5% at the
steepest part of the 535 meters long runway.

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93
94
 Terminal 2
Development
 Terminal 1 & 2 Layout Plan
New
Traffic
Light
From City

Exit to City

From City

ELEV. 0m to T2 ABOITIZ U-FREIGHT

to T2 Departures to T2
Exit to City
New Four Lane Bi-directional Roadway
ELEV.
0m
ELEV. 0m return from Departure Curb ELEV. 11m
to Taxi Hold to T1
Exit. 0m NEW
FASTPAK
WATERFRONT
HOTEL
Bus Staging
Taxi Hold

Integrated commercial
development with adequate car
parking facility Exit @ 11m
Private Car Passenger Pick-up ELEV. 11m
ELEV.
7m Existing Departure Curb
over T1 Approach Road

ELEV.
ELEV.
9m
Arrival Curb
9m Modify new Parking to Taxi Hold LUFTHANSA
TERMINAL
TERMINAL1 1 (AIRCRAFT MAINTENANCE
Taxi Pick-up HANGAR)
Controlled
TERMINAL 22 COMPOUND
FUTURE Parking TERMINAL FUTURE
Private Car
PAL
DEVELOPMENT Check-in and DEVELOPMENT Air Traffic Security
Pick-up Retail and
Baggage Claim Control Holdroom
Expansion Area Expansion
Access Regional Bus and Courtesy
Gate to VVIP Loading Buses
Airside Drop-off Dock

GSE

Holdroom
Expansion
TWY FOXTROT

TWY DELTA
GSE

TWY BRAVO 2

GATE ALLOCATION - MAXIMUM DEVELOPMENT

Terminal 1 & 2 Overview
T2 Departures

100
T2 Arrivals

101
T2 Ground Floor

102
Check-In View
Departures Drop-Off View
Landside Pier View
Baggage Reclaim View
Departure Lounge Retail View
Boarding Gate View
 This is a PPP Success Story…

 Without the PPP initiative these developments could not have occurred in this way.

 The Government has been relieved of the investment responsibility of the airport.

 The Government earned significantly through the bid process.

 The Government demonstrated its commitment to transparent, inclusive privatization.

 Private sector participation in tourism development and growth.

 Skill development of employees & private sector employee benefits.

 Banking participation with innovative funding models that help reinforce positive
perceptions about investment opportunities in the Philippines.
 This is a PPP Success Story…

 Capacity development of the airport in line with traffic forecasts.

 Commercial development of the airport which will have enhanced value at handback.

 Trade and business participation of the local and international communities.

 Employment generation – direct & indirect.

 Contribution to the overall economic growth of the Philippines in line with

Governments vision.
Questions