P23.3B deal secured for Mactan airport expansion
P23.3B deal secured for Mactan airport expansion
THE private company that now manages the Mactan airport terminal celebrated yesterday the closure of a P23.3-billion financing agreement with the Asian Development Bank (ADB) and a consortium of Philippine banks.
Manuel Louie Ferrer, president of the GMR-Megawide Cebu Airport Corp. (GMCAC), said the agreement ensures sol- id funding for the rehabilitation and expansion of the Mactan-Cebu International Airport, the country’s second busiest gateway, which now serves close to
eight million passengers a year.
GMCAC signed in December 2014 an Omnibus Loan and Security Agreement (OLSA) with a consortium composed of BDO Unibank, Bank of the Philippine Islands (BPI), Development Bank of the Philippines (DBP), Land Bank of the Philippines, Metropolitan Bank and Trust Company (MBTC) and the Philippine National Bank (PNB).
The OLSA was amended in January 2015 with the ADB’s approval of a US$75million loan for the airport project. The ADB is the big- gest social development funder in Asia.
GMCAC is represented by Ferrer and Chief Executive Adviser Andrew Acquaah-Harrison in the agreements.
World-class
ADB President Takehiko Nakao said last night that the bank was happy to contribute to “this great achievement through the PPP (public-private partnership).” He commended GMR and Megawide for their good track records and said he looked forward to the Mactan airport becoming “a world-class place.”
Nakao and the presidents or key officers of the banks participating in the consortium attended the event.
So did Department of Transportation and Communication Undersecretary Rene Limcaaoco, PPP Center Executive Director Cosette Canilao, Mactan-Cebu International Airport Authority (MCIAA) General Manager Nigel Paul Villarete, GMCAC Corporate Affairs Chief Estee Marie Plunket and local government executives.
GMCAC was formed after the consortium of GMR Infrastructure Ltd. of India and Megawide Construction Corp. won the concession for the renovation and expansion of Mactan airport for 25 years. Apart from upgrading the existing terminal, the corporation will build a second terminal building.
GMCAC has paid the Government a premium of more than P14 billion after being awarded the deal in early 2014. At that time, the estimated cost of building a new terminal was P17.5 billion.