GMR - Megawide consortium wins Mactan Cebu PPP airport project

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GMR - Megawide consortium wins Mactan Cebu PPP airport project

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India's GMR Infrastructure and Philippine contractor Megawide Construction Corporation are the likely winners of Mactan-Cebu International Airport terminal project in the Philippines.

Seven groups submitted bids for the project. Finally the consortium led by GMR Infrastructure and Megawide Construction Corporation submitted the lowest bid for the US$400 million airport terminal tender by offering a 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.

Oliver Tan, chief finance officer at Megawide, told reporters that Megawide and GMR aim to build an airport terminal that can accommodate 25 million passengers a year, more than three times the government requirement.

Cosette Canilao, executive director of the Public-Private Partnership Center, said:

In the technical proposals, the passenger traffic forecasts were reflected and Megawide gave one of the higher passenger traffic forecasts.GMR is actually an experienced airport operator. It is listed in India and is the operator of the Delhi, Turkey and Maldives airport. They've never lost in any PPP bids for airports.

Megawide, with a market cap of US$428 million, has won three out of five contracts, two school building projects, and the upgrade of the National Orthopedic Center, valued at around 26 billion pesos (US$588 million).

Other bids submitted for the project were close to the winning bid. See below the list of bids:

  • Filinvest-CAI Consortium: Filinvest Development Corp. and Changi Airports Mena Pte. Ltd., with Changi Airport Saudi Ltd. as the O&M partner; (P13.99 billion)
  • Premier Airport Group: led by SM Investments Corp., with Switzerland-based Flughafen Zurich AG as O&M partner; (P12.5 billion)
  • MPIC-JG Summit Consortium: Metro Pacific Investments Corp. and JG Summit Holdings, Inc., with France's Aeroports De Lyon as operation and maintenance (O&M) partner; (P11.23 billion)
  • AAA Airport Partners: Ayala and Aboitiz groups, with Texas-based Houston Airport System as O&M partner; (P11.08 billion)
  • First Philippine Airports: led by First Philippine Holdings, Inc., with Wellington International Airport Ltd., NZ Airports Ltd., and Infratil Ltd. as O&M partners; (P4.7 billion)

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