Bangalore, 31st October, 2014:
GMR-Megawide Cebu Airport Corporation (GMCAC) a joint venture between GMR Group and Megawide Construction Corporation has taken full operational control of the Mactan Cebu International Airport (MCIA) in Cebu, Philippines.
This marks a key milestone for GMCAC in its journey to transform MCIA into a world class airport. This is also an important landmark for Philippines as the MCIA is the country’s first airport to be privatized under the administration’s ambitious PPP programme aimed at modernizing key infrastructure assets.
In the international competitive bidding process GMR-Megawide Consortium had emerged as the highest bidder after offering a bid premium of 14.4 billion Philippine Pesos. The formal award of the project in April was followed by a six-month transition period to complete project formalities leading to the transfer of operations to GMCAC.
As part of the overall master plan, GMCAC will build a brand new terminal building within three years to cater to the growing traffic. At the same time, the immediate priority will be to upgrade the existing terminal and enhance operating systems and processes to improve service quality and efficiency. Alongside, GMCAC will lay adequate emphasis on corporate social responsibility and work towards socio-economic development in the surrounding region.
Commenting on this occasion, Mr. G.M. Rao, Chairman, GMR Infrastructure Ltd said: “The takeover of operations of Mactan Cebu International Airport marks the beginning of a new chapter for GMR Group’s airports business. We have proven credentials in airport operations and modernization and we are confident that we will undertake this prestigious project in a timely manner and deliver an airport that Cebuanos and Filipinos will be proud of.”
Mr. Rao further added: “GMR has proven track record for the standards and quality of infrastructure, services and customer deliverables at key airports such as New Delhi, Hyderabad and Istanbul Sabiha Gocken. We have the requisite experience across the entire spectrum of airport development and operations. We believe that our strategic plan for MCIA will result in the delivery of an efficient, passenger-oriented and commercially sustainable airport. We believe in inclusive growth and through Foundation we will also contribute towards the social and economic development of the Cebu province”.
GMR-Megawide Consortium plans to develop the Mactan-Cebu International Airport into a regional hub in the Philippines, creating passenger and cargo traffic growth, jobs for local community, giving a boost to the tourism traffic and creating multiplier economic benefits for the region.
Airports operated by GMR have been consistently rated amongst the best run airports in the world as per Airport Service Quality surveys conducted by Airports Council International. GMR has demonstrated its capability and expertise by transforming the Delhi airport. When GMR took over the airport in 2006 it was ranked 101st amongst 150 airports around the world. Today the Delhi airport is the 5th best airport overall amongst 285 airports in the world. Similarly the Hyderabad airport has been rated the 2nd best airport in the world in the 5 to 15 million passenger category.
GMR had bid for the Mactan-Cebu airport project with Megawide Construction Corporation, one of Philippine’s leading construction firm.
About GMR Infrastructure Limited:
GMR Infrastructure Ltd is a Bangalore headquartered infrastructure group with interests in Airports, Energy, Highways and Urban Infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets. The Company has 15 power generation assets of which 8 are operational and 7 are under various stages of development. In the Highways sector the Group is operating 9 assets (including 2 in which the Group holds minority interest) across the country. In the Airports sector, the Company operates India’s busiest airport, the Indira Gandhi International Airport in New Delhi, where it has built a brand new integrated terminal T3. It has also developed and commissioned the greenfield international airport at Hyderabad as a gateway to south and central India. The Group has been recently awarded the Mactan-Cebu International Airport project in the Philippines for renovation, operation and maintenance with a concession period of 25 years. GMR Group is also committed to social development initiatives and executes these through its Corporate Social Responsibility arm, the GMR Varalakshmi Foundation which carries out work in 24 locations.
For further information about GMR Group, visit http://www.gmrgroup.in/index.html
GMR Infrastructure Limited is proposing, subject to market conditions and other considerations, a rights issue of its equity shares and has filed a Draft Letter of Offer with SEBI and the Stock Exchanges. The Draft Letter of Offer is available on the website of SEBI at www.sebi.gov.in and the website of the Lead Managers at www.jmfl.com, www.axiscapital.co.in, www.icicisecurities.com and www.sbicaps.com. Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to the section titled “Risk Factors” of the Draft Letter of Offer for details of the same.