GMR in race for 5 airports in Philippines worth $2.4-bn

GMR-Megawide is in a race to acquire operations of five airports worth $2.4 billion in Philippines under public-private partnership (PPP) model.

As many as six companies, including GMR-Megawide, have evinced interest in the airport projects, according to a statement issued by the Philippines government. GMR-Megawide currently runs the Mactan Cebu International Airport in that country.

“These PPP projects involve development, operations and maintenance of the five regional airports,” the statement said.

The private partner would provide necessary improvements to the airport to enhance safety, security and access.

Besides, it would have to bring in efficiency in passenger and cargo movement, operations as well as actively market the airports in order to develop direct international passenger traffic. The other prospective bidders for the projects are Metro-Pacific-JG Summit Consortium, Aboitiz Equity Ventures, Miguel Corp, Philippine Skylanders Inc and Union Equities.

These airports involve an estimated total cost of Php 108.19 billion ($2.40 billion), the statement said.

The five regional airports in Philippines currently being offered under PPP mode are Bacolod-Silay, Iloilo (Bundle 1), Davao, Laguindingan, and New Bohol (Panglao) (Bundle 2), the statement added.

MCIA was the first airport in Philippines to be privatised under the administration's ambitious PPP programme aimed at modernising key infrastructure assets.

In the international competitive bidding process, GMR-Megawide Consortium had emerged as the highest bidder after offering a bid premium of 14.4 billion Philippine Pesos (approximately $305 million) for the airport.

The formal award of the project in April, 2014 was followed by a six-month transition period to complete project formalities leading to the transfer of operations to GMR-Megawide on November 1.