Megawide eyes joint venture for P12.83-B Deped project

MEGAWIDE Construction and its controlling shareholders are setting up a joint venture firm to build classrooms for the Department of Education under a P12.83-billion 10-year publicprivate partnership (PPP) infrastructure project.

Megawide yesterday reported to the Philippine Stock Exchange that its board had approved the creation of a joint venture company with its parent firm Citicore Holdings Investment Inc. to be named Citicore-Megawide Consortium Inc. Citicore will control 90 percent of the venture while Megawide will own the remaining 10 percent.

The venture will effectively spread any balance sheet risks arising from this PPP project among the shareholders.

The joint venture will undertake

construction, maintenance and leasing of school buildings under a build-leasetransfer agreement with DepEd.

“The venture is seen to contribute to the objective of the government to accelerate the increase in the number of classrooms in public schools and cut its current shortage of around 66,800 classroom units nationwide,” Megawide said.

Last August, the Megawide-Citicore consortium won the DepEd’s school infrastructure PPP packages (A and B) for Region III and Region IV-A, respectively, with lease payments worth P523 million and P760 million per annum each year for the next 10 years.

The group has committed to build 7,144 classrooms.