Thursday, June 20, 2024

GMR Group Poised for Success in Manila Airport Redevelopment Bid

GMR Airports stands as one of the leading contenders in the $3 billion redevelopment bid for Ninoy Aquino International Airport in Manila. The other two contenders are San Miguel Corporation, a Filipino conglomerate, and the Manila International Airport Consortium (MIAC). GMR’s consortium includes Cavitex Infrastructure Corporation and House of Investments, along with support from the Yuchengo family office.

The bid results was scheduled to be announced on February 14. The project, outlined by the Philippine transportation department, entails terminal upgrades, increasing capacity to 62 million passengers annually, and enhancing technology infrastructure.

The winning bidder will operate and maintain the airport, with the capacity doubling to around 60 million passengers per annum after the upgrade. The concession period is set for 25 years.

The GMR-led group has proposed a 33.30% share for the government, according to the Philippine Department of Transportation. In contrast, the San Miguel Consortium, which includes South Korea’s Incheon International Airport Corp., has offered the highest share at 82.2%.

Encouraging public-private partnerships (PPPs), the government of Ferdinand Marcos Jr. has strategically focused on airport development as the travel and tourism industry undergoes a revival post-COVID-19.

If GMR Group secures the bid, it will mark the firm’s third airport project in the Philippines. Previously, the group won the tender for Mactan-Cebu International Airport in 2014 and received the project to expand Clark International Airport in 2019. This project would also be the group’s largest international airport development outside India, where it operates the Delhi airport.

Saurabh Chawla, Executive Director (Finance & Corporate Strategy) at GMR Group, recently expressed the group’s intention to continue operations both domestically and internationally.

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