MCIA operator signs funding deal with ADB, other banks

CEBU, Philippines - GMR Megawide Cebu Airport Corporation yesterday signed an agreement with Asian Development Bank and a consortium of Philippine banks for the P23.3-billion funding for the rehabilitation and expansion of the Mactan-Cebu International Airport.

GMCAC actually signed in December 2014 an Omnibus Loan and Security Agreement with a consortium comprising BDO Unibank, Bank of the Philippines, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank and Trust Company and the Philippine National Bank, which will partly finance the project cost.

The OLSA was amended in January with the ADB’s approval of $75-million loan for the airport project and signed yesterday.

With Cebu contributing 6.2 percent to the Philippine gross domestic product, the expansion of MCIA, the country’s second busiest gateway in terms of passenger volume,  is considered a significant catalyst of economic development.

The GMR group, with a diverse portfolio of businesses, is the world’s fourth largest airport operator. Megawide Construction, on the other hand, is recognized in the Philippines as a leader in the infrastructure sector and pioneer in cutting-edge technology and innovation within the industry.

Andrew Harrison, GMCAC chief executive officer, likened the bank funding to the “oil that lubricates the engine of economic growth,” referring to the airport.

GMCAC president Manuel Louie Ferrer also said that infrastructure improvements boost the country’s growth, particularly in the tourism industry and other key sectors that create employment opportunities and promote sustainable and inclusive economic progress.

Ferrer in a statement added that GMCAC is mindful of “the chance we have been given to improve, not only this facility, but also the country’s competitiveness in airport infrastructure”.

Those who attended the event included ADB president Takehiko Nakao, DOTC Undersecretary Rene Limcaoco, and the presidents and key officers of the banks participating in the consortium. —  (FREEMAN)