Megawide to raise debt and equity to finance Mactan Cebu airport PPP project
The Philippine contractor Megawide Construction Corporation is raising funds for the development of the P17.50-billion (US$400 million) Mactan-Cebu International Airport terminal project.
According to Megawide chief information officer Louie Ferrer, the firm plans to raise P15 billion (US$344.2 million) within the year through a combination of debt and equity.
Megawide is still in discussions with banks on how to arrange the deal. The listed company has signaled it will tap the equity market after increasing its authorized capital stock to P5 billion from P2 billion for the creation of preferred shares.
So far, Megawide has bagged 4 out of the 7 awarded projects of the Aquino administration's PPP scheme.
On 22 April 2014 the Philippine Department of Transportation and Communications (DOTC) and the consortium formed by India's GMR Infrastructure and Megawide Construction Corporation signed the project contract. The team offered the lowest bid for the US$400 million airport terminal tender by offering a concession premium to the Government of 14.4 billion peso (US$328.2 million).
The project included the construction of a new passenger terminal with an annual capacity of 8 million, the rehabilitation of the old terminal, and the operation of the whole airport facility for 25 years. Megawide and GMR aim to build an airport terminal that can accommodate 25 million passengers a year, more than three times the government requirement. Construction of the airport is expected to start on January 2015.
In late July DOTC launched a request for expressions of interest (RFEOI) for the procurement of an independent consultant for the project. The contract has an approved budget of P115.1 million (US$26.5 million).