Megawide-GMR group taps ADB funds for Cebu airport project

MANILA, Philippines - The tandem of Filipino-owned Megawide Construction Corp. and Bangalore-based GMR Group has tapped the Asian Development Bank (ADB) for a P3.33-billion ($75-million) loan bringing to P23.33 billion the total debt raised by the consortium to fund the Mactan Cebu international airport expansion project.

GMR-Megawide Cebu Airport Corp. president Manuel Louie Ferrer said the company has signed a new agreement last Jan. 26 amending its existing Omnibus Loan and Security Agreement (OSLA) to include the multilateral lending agency in funding the P17.5-billion public private partnership (PPP) project.

Ferrer said GMAC is honored for the immense trust and support placed by ADB for the important PPP project.

“The fact that we were able to get the support of a global institution like ADB along with the Filipino lenders reflects our commitment to meeting global standards. We are excited towards uplifting the existing terminal infrastructure and build a world class terminal, which all Filipinos will be proud of,” Ferrer said.

According to Ferrer, ADB’s participation in the financing of the development of the MCIA signifies the extreme importance of the country’s first PPP project to the total development and progress of the country.

“Improvement of MCIA’s infrastructures is necessary to further stimulate the domestic industry and enhance socioeconomic opportunities. Hence both the grantors and concessionaires must ensure prompt completion of the project,” he said.

In a separate statement, ADB said it has approved the P3.33 billion ($75 million) loan for the expansion and renovation of Mactan Cebu Airport to boost passenger traffic, support inclusive growth, and mark the first large-scale PPP project awarded by the government.

Christine Genalin Uy, Investment Specialist in ADB’s Private Sector Operations Department, said the project would “increase tourism, and support industry and agricultural activity, thus creating employment opportunities in the province of Cebu and its neighboring provinces.”

“ADB’s involvement demonstrates its commitment to assist the government in developing critical infrastructure, the lack of which has been hampering new investments in the country,” she said.