GMR-Megawide set to remit P14B for Mactan airport

Rappler.com

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GMR-Megawide set to remit P14B for Mactan airport
The amount, Megawide said, will be transmitted before April 25

 

MANILA, Philippines – Filipino-owned Megawide Construction Corporation and Bangalore-based GMR Airports Ltd will be paying government P14.4 billion ($325 million) within the week as “premium payment” to begin work on the expansion of the Mactan-Cebu International Airport.

All in all, the project, which will modernize the country’s second-largest aviation hub, is estimated to cost P17.5 billion ($395 million).

Megawide chief marketing officer Louie Ferrer said the amount, which represents the bid made by the consortium in December 2013, will be paid before April 25.

The Department of Transportation and Communications (DOTC) earlier said GMR-Megawide had 20 days to complete necessary requirements before signing the contract for the expansion of the airport.

The P14.4-billion payment is one of those requirements. The other is an irrevocable letter of credit in the amount of P180 million.

The project is the biggest airport Public-Private Partnership under the Aquino administration.

It aims to modernize the Cebu airport with the construction of a new international passenger terminal building with an annual capacity of 8 million passengers and expansion of the existing terminal building. The existing building has been accommodating 6.7 million passengers since 2012, way over its design capacity of 4.5 million.

The airport will also feature retail and entertainment components such a mall, restaurants and airline lounges. – Rappler.com

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