MVP, Gokongwei to jointly bid for Cebu airport-A A +A
Tuesday, February 26, 2013
MANUEL V. Pangilinan's Metro Pacific Investment Corp. (MPIC) and John Gokongwei's JG Summit Holdings Inc. have formalized their partnership to jointly pursue and bid for the P17.5-billion Mactan Cebu International Airport (MCIA) Passenger Terminal Project.
The two firms inked their memorandum of agreement for the development of the country's second major commercial gateway on February 22.
MPIC will be the majority stockholder of the joint venture called MPIC-JGS Airport Consortium Inc., followed by JG Summit with 33 percent stake, and an airport operator partner with 10 percent.
The consortium will bid for the rehabilitation and expansion of the airport and will also be exploring other airport projects that may be rolled out by the government in the future, according to their disclosures at the Philippine Stock Exchange (PSE) on Monday.
MPIC and JG Summit are two of the largest conglomerates in the Philippines with a combined market capitalization of over P398 billion.
"The strong ties of the Gokongwei family in Cebu, through its ancestral roots and economic contribution in various real estate developments and retail businesses account for a deep sense of commitment to further improve Cebu’s business links to the rest of the world,” said Pangilinan, MPIC chairman.
He said the integration of the two companies' management expertise, corporate governance adherence and solid track record in developing large-scale infrastructure projects will strengthen the capabilities of the airport in responding to the needs of both passenger and airline customers.
Gokongwei, JGS president and chief operating officer, also lauded their partnership with MPIC, which also operates the state-of-the-art North Luzon Expressway (NLEX).
"We hope to grow the airport into a real efficient and commercially viable hub for both leisure and business travelers flocking to the faster-growing southern part of the country,” he said.
Set to bid as well is the P10-billion joint venture of Ayala Corp. and Aboitiz Equity Ventures Inc., Filinvest Development Corp., and Prime Power Holdings Corp., among others.
The 20-year concession contract is expected to be awarded by project leader Department of Transportation and Communications before the end of the year. (SDR/Sunnex)