GMR-Megawide racing with six others to acquire 5 airports worth USD 2.4 billion

GMR-Megawide is in race with six companies to acquire operations of five airports worth USD 2.4 billion in Philippines under PPP model, according to a statement issued by the Philippines government.

"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 passenger safety, security, access and 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 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.

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

Mactan Cebu International Airport (MICA), currently run by GMR-Megawide, 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 USD 305 million) for the airport.

The other prospective bidders who bid for the five airport projects are Metro-Pacific-JG Summit Consortium, Aboitiz Equity Ventures, Miguel Corp, Philippine Skylanders Inc and Union Equities.

(Image credits: Indiatimes)