By Neil Jerome C. Morales (The Philippine Star) | Updated June 17, 2013 - 12:00am
MANILA, Philippines - Building contractor Megawide Construction Corp. is bringing its partnership with an Indian airport operator to more Philippine public-private partnership (PPP) projects.
PPP projects, to which Megawide is actively participating in, will diversify the income stream of the residential condominium builder, an official said.
“GMR Group participates in PPP projects all over the world but Philippines is booming so they are really interested,” Louie Ferrer, vice-president for marketing and corporate information officer of Megawide, said in an interview.
“Because of GMR, we have more confidence (to bid),” Ferrer said.
The GMR Infrastructure Ltd.-Megawide consortium is one of the seven groups pre-qualified to bid for the P17.5-billion financing, design, construction, operation and maintenance contract of the Mactan-Cebu International Airport.
Ferrer said Megawide is maintaining its partnership with GMR for other airport PPP projects in the country.
“We are interested because our partner is GMR,” Ferrer said, adding that the Bangalore-based company manages one of the best airports in the world.
Other airport PPP projects that have yet to be rolled out are the privatization of the $28-million Laguindingan airport in Misamis Oriental; construction of the $120-million airport in Panglao, Bohol; the $97-million rehabilitation of the airport in Puerto Princesa, Palawan; and the development of a new $71-million airport in Daraga, Albay.
Ferrer said GMR is bringing its operational efficiency in the Mactan project, which is comparable in size to GMR Hyderabad International Airport.
GMR is a global infrastructure firm with projects in airports, energy, highways and urban infrastructure.
GMR-led Hyderabad and Delhi airports ranked amongst the world’s top airports. It is the company behind the Rajiv Gandhi International Airport in India and the Istanbul Sabiha Gokcen International Airport in Turkey.
Despite its participation in PPP projects, Megawide will still be busy in its core construction business.
Megawide is bidding to rehabilitate the 68-year old Philippine Orthopedic Center in Quezon City. It won two school infrastructure projects involving the construction of a total of 7,144 classrooms in Central and Southern Luzon.
“We retain the buildings. Aside from SM, we have new clients like Rockwell and Shangri-La,” Ferrer said.
Megawide, the major contractor of residential builder SM Development Corp. (SMDC), is building new towers like Rockwell’s Business Center, Shangri-La Salcedo in Makati and Filinvest residential condominium in Cebu.
Ferrer said SM now accounts for 30 percent of the company’s revenues, given new clients. In the past few years, the bulk of Megawide’s income came from SMDC’s projects.
Last month, the construction firm raised P2.37 billion after principal shareholder Citicore Holdings Investments Inc. sold shares to local and foreign institutional investors.
In the first quarter, profits of Megawide jumped more than 20 percent to P322.68 million from P264.76 million a year ago on the back of higher contract revenues.