18 December 2013
India’s GMR Infrastructure has placed the highest bid to develop the Mactan-Cebu International Airport in the Philippines, a tender worth $400m.
The bid was based in partnership with Philippines construction firm Megawide Construction Corp and beat six rivals, including the country’s biggest conglomerates.
GMR offered $325m for a 25-year concession to operate central Philippines’ second biggest airport, Mactan-Cebu International Airport and build one of its terminals.
Megawide and GMR aim to build an airport terminal that can accommodate 25 million passengers a year, more than three times the government requirement, Oliver Tan, chief finance officer at Megawide, told reporters.
Mactan-Cebu International Airport will benefit from a new terminal as part of the development (Wikimedia Commons)
The group’s bid reflects its "expectations in terms of the internal rate of return" of the project, Mr Tan said, adding GMR would take a 40% stake in the joint venture.
But he added the plan would depend on developments in the tourism industry and the security situation in the country.
Other bidders were the consortium of Metro Pacific Investments Corp and JG Summit Holdings Corp with partner Aeroports de Lyon; First Philippine Holdings Corp and Wellington International Airport Limited; and Ayala Corp, Aboitiz Equity Ventures Inc and Houston Airport System.
The winning bidder is expected to be announced in early January.