Megawide puts brakes on unsolicited proposals

MANILA, Philippines — Tycoon Edgar Saavedra’s Megawide Construction Corp. is putting the brakes on unsolicited proposals for now, as the listed infrastructure conglomerate intends to focus on solicited projects that are part of the government’s infrastructure flagship program.

“As much as possible, we will wait for the government to release the PPP project list. We’ll just wait for it,” Saavedra said.

For projects that the government will bid out, Saavedra said Megawide remains interested on land transport related projects as well as school buildings.

According to the Public-Private Partnership Center, there are around 45 PPPs that are part of the government’s 185 infrastructure flagship projects.

Around 20 solicited projects are expected to be submitted to the National Economic and Development Authority Investment Coordination Committee for approval this year, while 15 solicited projects are for approval next year.

Saavedra said Megawide’s unsolicited proposal for the EDSA bus rapid transit (BRT) will now go on a solicited route wherein an open bidding for the project will be undertaken.

“The PPP Center and Department of Transportation have decided that it will be done through a solicited route. So we’ll just wait for it. It’s okay for us to join,” he said.

The project involves the redevelopment of the EDSA Carousel line, which assumes a transition period to a full-fledged BRT system.

It includes the finance, design, development, supply, installation, operation and maintenance of stations and staging area, bus supply, BRT equipment and intelligent transport systems.

Meanwhile, Saavedra said Megawide is currently doing the planning for the proposed Cavite BRT system which will connect a significant portion of Cavite with Metro Manila through the company’s Paranaque Integrated Transport Exchange.

He said the project would likely start next year.

For this year, Megawide intends to raise up to P5 billion from a bond issuance in the third quarter, to be listed possibly on July 8.

Saavedra said proceeds would be used to refinance existing debt obligations, partially fund Megawide’s capital expenditures and support projects of real estate arm PH1 World Developers Inc.

Megawide expects its capital expenditures to reach P2.5 billion to P3 billion this year.

Of the budget, P1 billion is intended to be used by Megawide for the expansion of transit-centric developments while the remaining balance will be utilized by PH1 for its pipeline projects, and by Cebu2World Development Inc. for the ongoing development of the Carbon Market.