GMR-Megawide consortium secures Philippines airport contract

A consortium of Indian infrastructure major GMR Group and Megawide has secured the Mactan-Cebu International Airport rehabilitation, expansion and operation project in the Philippines.

The Department of Transportation and Communications (DOTC) of the Philippines has formally announced the award of the project to the GMR-Megawide consortium.

Bangalore-based GMR Group said the project has a concession period of 25 years.

Megawide Construction Corp is one of Philippine's leading construction firms listed on the Philippine Stock Exchange since 2011.

''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 $320 million),'' the company said in a statement.

GMR-Megawide consortium plans to develop the Mactan-Cebu International Airport into a regional hub in the Philippines.

According to GMR, the airport expansion project will create passenger and cargo traffic growth, create local jobs, boost tourism traffic and generate multiplier effects on the region's economy.

''Winning of the Cebu airport is a recognition of GMR's emergence as a leading airport developer in the world with proven capabilities in airport modernisation and operations. It also gives us a foothold in an exciting and rapidly growing economy,'' GMR spokesperson said.

GMR Infrastructure, which has interests in airports, energy, highways and urban infrastructure sectors, operates India's busiest airport, the Indira Gandhi International Airport in New Delhi.

GMR has also developed and commissioned the greenfield international airport in Hyderabad

It is also part of a consortium that has upgraded and operates the Istanbul Sabiha Gökçen International Airport.

GMR Group recently sold a 40-per cent stake in Istanbul Sabiha Gokçen International Airport to Malaysia Airport Holdings for €225 million.

The GMR group had to abandon plans to develop an airport in Male after it got embroiled in a legal tussle with the Maldivian government.