PPP: Megawide-GMR taps ADB for Mactan Airport project financing

The consortium of Megawide Construction Corp. and 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 (MCIA) expansion project.

According to GMR-Megawide Cebu Airport Corp. president Manuel Louie Ferrer, the company has signed a new agreement last January 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.

“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,” he said.

He said his group was honored for the immense trust and support of the ADB for the project. He added that the participation of the ADB in its financing signifies the extreme importance of the MCIA project to the inclusive development of the country. 

“Improvement of MCIA’s infrastructure 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.

A separate statement from the ADB said it had approved the P3.33 billion ($75 million) loan for the MCIA expansion and renovation to boost passenger traffic and support inclusive growth. 

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

The involvement of the ADB in the project demonstrates its commitment to assist the government in developing critical infrastructure, the lack of which has been hampering new investments in the country.