Posted on March 06, 2013 10:13:19 PM [ BusinessWorld Online ]
BUILDER Megawide Construction Corp. plans to team up with Indian airport developer GMR Infrastructure Ltd. in the bidding for the Mactan-Cebu International Airport (MCIA) development and rehabilitation public-private partnership (PPP) plan should the local company bag the project contract, Megawide said in a disclosure yesterday.
“In line with our disclosures on Megawide’s plan to engage in infrastructure projects dated June 15, 2011 and July 4, 2011, Megawide, together with GMR Infrastructure Ltd., a leading infrastructure and airport developer from India, will participate in the bidding for the MCIA project,” the disclosure read.
GMR Infrastructure is the infrastructure holding company of GMR Group based in Bangalore, India.
Together with Megawide, it was one of 11 firms that bought bid documents for the MCIA project.
However, Megawide will only push through with its partnership with GMR Infrastructure when it is awarded the airport project contract.
“Megawide signed an understanding with GMR to form a joint venture once the project is awarded,” the same disclosure showed.
When asked to elaborate on the company’s disclosure, Megawide Vice-President for Marketing and Chief Information Officer Louie B. Ferrer said in a text message: “We will only form the joint venture once we (Megawide) get the project. Now it’s just an MoU (memorandum of understanding).”
The P17.5-billion MCIA project, which involves the construction of a new passenger terminal building and the operation and maintenance of the old and new facilities, is one of the government’s PPP projects to be implemented by the Department of Transportation and Communications.
The project is currently for submission to the National Economic and Development Authority, according to the state-run PPP Center’s Web site.
Pre-qualification of bidders for the project has been set for March 22 while the auction is scheduled for Aug. 2.
Nine other firms purchased bid documents for the project including: Metro Pacific Investments Corp. (MPIC); JG Summit Holdings, Inc.; First Philippine Holdings Corp.; SM Investments Corp.; San Miguel Corp.; Aboitiz Land, Inc.; Filinvest Development Corp.; MacroAsia Corp.; and Prime Power Holdings Corp.
Two other partnerships have already been formed for the bidding: the joint venture between AboitizLand and Ayala, as well as the one between MPIC of Manuel V. Pangilinan and Gokongwei-led JG Summit.
Megawide was incorporated in 2004, and is primarily engaged in site development, earthworks, structural and civil works, masonry works, architectural finishes, electrical works, plumbing and sanitary works, fire protection works, and mechanical works.
It holds an AAA construction license issued by the Philippine Contractors Accreditation Board, making the firm eligible to participate in big-ticket private infrastructure projects, according to the company’s Web site.
In October last year, Megawide -- in partnership with Citicore Holdings Investment, Inc. -- won one of the two contracts for the PPP for the School Infrastructure Project (PSIP) being implemented by the Education department.
The PSIP is the second PPP project to be successfully rolled out by the government after the $46.6-million Daang Hari-South Luzon Expressway Link Road Project which Ayala Corp. will undertake under a build-transfer-operate scheme.
The other winning bidder for the PSIP contract was BF Corp.-Riverbanks Development Corp. consortium, which will be building in the Ilocos region.
The P16.42-billion PSIP involves the construction in 10 years of around 9,300 one- and two-storey public school classrooms -- including furniture and fixtures -- in various sites in regions I (Ilocos Region), III, and IV-A via build-lease-transfer method, the PPP Center said.
Megawide boosted its nine-month net profit as of September last year by 77.36% to P633.50 million from P357.18 million in year-ago levels due to higher contract revenues booked in the period.
“The increase in contract revenues and its corresponding costs is mainly due to the following new projects: Linear, Studio City and Studio Zen of Filinvest Land, Inc. and Jazz Phase 2 and Grass Tower 2 of SM Development Corp.,” Megawide said in its end-September 2012 financial report to corporate regulators.
The company’s contract revenues climbed by 23.57% to P5.61 billion versus P4.54 billion in the same period in 2011, while its contract costs rose by 20.88% to P4.69 billion from P3.88 billion in 2011, the same report showed.
Megawide shares were traded at P17.96 each yesterday, unchanged from last Tuesday’s close. -- Franz Jonathan G. de la Fuente