GMR group wins $700 million airport project

Megawide is a Philippines based construction company. GMR Infrastructure, in a filing with BSE, said it intends to develop Mactan-Cebu Airport as a region hub in Philippines, creating passenger and cargo traffic besides jobs for local community.

"We firmly believe that GMR-Megawide consortium has right credentials and capabilities to undertake this prestigious project and deliver an airport that Cebuanos and Filipinos will be proud of," GM Rao, chairman GMR Group said in the statement.

In the bidding conducted in November last year, the GMR-Megawide Consortium proposed to undertake the project, which entails renovating the existing passenger terminal building (PTB), building a new one to service international flights, and operating the airport.

It would involve upfront payment premium of 14.4 billion Peso (over USD 320 million).

GMR-Megawide will now have 20 days to complete the post-award requirements, such as the submission of an irrevocable letter of credit in the amount of 180 Million Peso and the payment of the premium amount to government through the Mactan Cebu International Airport Authority (MCIAA).

Once the requirements are satisfied, the concession agreement will be signed by the parties, paving the way for the implementation of the project over the next 3-4 years.