GMR files papers for Filipino airport bid

GMR consortium is competing with 6 other groups, including that of Singapore's Changi Airport International and Switzerland's Zurich Airport International

GMR Infrastructure is learnt to have filed qualification documents for a formal bid to develop 17.5-billion peso ($425 million) Mactan-Cebu International Airport project in the Philippines.

The documents have been filed by GMR in a consortium with local Megawide Construction.

The consortium is competing with six other groups, including that of Singapore's Changi Airport International and Switzerland's Zurich Airport International, for qualification.

Results of eligible firms for putting final bids are expected in the next 15-20 days. A GMR spokesperson declined to comment on the matter.

An e-mail to Megawide Construction remained unanswered.

Meanwhile, Philippines' Department of Transportation and Communications was quoted in the local media as saying that 7 firms/consortia, including GMR, have submitted the documents. Early this month, Megawide had said it has tied up with GMR to bid for the project. Megawide, a leading local construction company, was one of the 11 firms that bought bid documents for the Mactan-Cebu International Airport (MCIA) project, which has the second largest traffic in the Philippines.

The Mactan-Cebu airport project involves construction of a passenger terminal building with a capacity of eight million passengers per year. It also envisages renovation and expansion of the old facilities, installation of required equipments and operation of both, old and new facilities. The successful bidder will be awarded a 20-year concession contract to operate, while the project will be developed in two phases at an estimated cost of 17.5 billion peso (the currency of Philippines).

MCIA is the second largest airport in the Philippines after Manila International Airport and had handled more than 6.2 million domestic and international passengers in 2011. The airport is also a major gateway for various tourist destinations in central and southern provinces of Philippines. GMR Infrastructure operates two airports in India -- Delhi International Airport and Hyderabad International Airport and Istanbul Sabiha Gokcen International Airport (ISGIA) at Istanbul, Turkey.

Last year, GMR, which has presence in roads, power and airports sectors, had to make an unceremonious exit from Male International Airport after the local government cancelled its concession agreement. Currently, the matter is pending before an arbitration panel. GMR Infra scrip fell 0.45 per cent to close at ~22.30 apiece on the BSE today.