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Philippines awards $491m Cebu airport deal to GMR-Megawide group

Published on Apr 5, 2014 1:54 PM
 

MANILA (REUTERS) - The Philippines said on Saturday it had awarded the US$390 million (S$491 million) deal to renovate, expand and operate the Mactan-Cebu international airport to India's GMR Infrastructure Ltd and local partner Megawide Construction Corp.

GMR and Megawide submitted the best bid for the biggest infrastructure deal offered to investors so far under the government's Public-Private Partnership (PPP) programme, the Department of Transportation and Communications (DOTC) said.

It took the DOTC more than three months to award the project after one of the six other bidders, Philippine conglomerate Filinvest Development Corp, raised a conflict-of-interest issue against the GMR-Megawide group.

The group offered a premium of 14.4 billion pesos (S$403 million) at a tender in December to win the 25-year concession, which entails renovating the passenger terminal building, building a new one to service international flights and operating the airport, the nation's second-biggest gateway.

 
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