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.
________________________________________________________
