Bits and Snippets of the Philippines

Basic Reading of Global Filipinos

GMR-Megawide Consortium Bids to Manage 5 Airports in Philippines

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The Philippine government in December 2012 initiated an international competitive bidding process for the management and development of the Mactan Cebu International Airport or MCIA. In December 2013, GMR Infrastructure in partnership with Megawide Construction Corporation of Philippines emerged as the highest bidder after offering a bid premium of 14.4 billion Philippine Pesos (approximately US$ 320 million). The consortium, called GMR Megawide Consortium (GMCAC), has taken full operational control for the renovation and modernization of MCIA in November 2014.

Now, GMCAC is in a race with five other companies to acquire operations of five other airports in the country worth 108.19 billion Pesos or US$ 2.4 billion under the Public-Private Partnership (PPP) model.

As defined by www.ppp.gov.ph, PPP is a contractual agreement between the Philippine Government and a private firm targeted towards financing, designing, implementing and operating infrastructure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation between the parties – minimizing cost while realizing project developmental objectives. Thus, the project is to be structured in such a way that the private sector gets a reasonable rate of return on its investment.

These PPP projects include the development, operations and maintenance of the five regional airports. The airports involved are located in the following cities:

  • Bacolod-Silay
  • Iloilo
  • Davao
  • Laguindingan
  • New Bohol (Panglao)

GMR was founded by G.M Rao of India and has since then evolved as a major player in the global infrastructure sector, particularly in high growth areas such as airports, energy, transportation and urban infrastructure. GMR operates two airports in India and one in Cebu, 15 power generation assets, 6 operations highways, a foray of property development and construction, promotion of sports teams, and various corporate social responsibility (CSR) projects in education, health and hygiene, and community development.

Megawide Construction Corporation is a publicly-listed construction firm in the Philippines and is recognized for its use of advanced construction methods and technology. The company’s brand of engineering excellence has turned it into the country’s leading construction firm. Its vision, innovation and commitment of a group of young, dynamic and highly trained engineers. Megawide projects include residential, office and commercial, hotels and casinos, PPP and social infrastructures, mixed use and industrial infrastructures. Michael Cosiquien is Megawide’s Chairman and CEO while Edgar Saavedra is its President and COO.

Sources: moneycontrol.com | gmrgroup.in | megawide.com.ph | ppp.gov.ph

Title photo from commons.wikimedia.org.

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