GMR-Megawide ties up funds for Philippines airport project.

GMR-Megawide Cebu Airport Corporation (GMCAC), a 40:60 joint venture between GMR Infrastructure Ltd. and Manila-based Megawide Construction Corporation, has tied up funds for its Mactan Cebu International Airport, located in Cebu, the Philippines.

The loan will fund 70 per cent of its total project cost of 33 billion Philippine pesos (around $750 million). Philippines-based BDO Capital & Investment Corporation acted as the lead arranger to the transaction and the loan is being provided by a consortium of six banks.

The total equity contribution of GMR to GMCAC will be around $90 million, out of which GMR has already invested $48 million and the balance will be paid over four years.

As part of the master plan, GMCAC will build a brand new terminal within three years to cater to the growing traffic.

At the same time, the immediate priority will be to upgrade the existing terminal and enhance operating systems and processes to improve service quality and efficiency.

GMCAC will be responsible for construction, development, renovation, expansion and operation of the airport for a period of 25 years as provided in the concession agreement. Mactan Cebu is the first airport in Philippines to be privatised under the administration's ambitious public-private partnership programme, aimed at modernising key infrastructure assets.


HBL