MEGAWIDE Construction Corporation has spent a total of P110.5 million as of March 31 this year, taken from the net proceeds of its P4-billion preferred share issue in 2014, to pursue a proposal to design, build, operate and maintain six regional airports in the Philippines.
The proposal covers six airports located in Davao, Palawan, Iloilo, Bacolod, Bohol, and Laguindingan.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Megawide said that as of March 31 this year, P2.08 billion of the net proceeds of P3.94 billion had been disbursed, with P1.9 billion remaining.
“The remaining balance of the Preferred Shares Net Proceeds amounting to P1.9 billion as of March 31, 2018 is expected to be applied on costs to be incurred in accordance with the revised planned use and estimated timing as disclosed in the Offering Circular and to the PSE,” it said.
In connection with its regional airports proposal, Megawide said it would use a portion of the preferred shares net proceeds “to fund the bid preparation, project feasibility studies, value engineering services, technical and planning, engineering analysis and designs as well as fund a portion of the projected initial capital outlay requirements of the project.”
Megawide and its consortium with GMR Infrastructure had been declared a qualified bidder of the regional airports project in September 2015 when the airports were still offered as a bundle.
“With the change of government administration in 2016, the airports were unbundled, and the consortium is considered as pre-qualified for each airport, having qualified in the previous bid. In May 2017, the government terminated the plan to bid out the project to private sectors. Accordingly, expenses incurred for this project in the fourth quarter amounting to P104 million pertain only to final billings on fees and services mainly rendered by GMR Infrastructure to the consortium,” Megawide said.
“As of March 31, 2018, P110.5-million from the preferred shares net proceeds were released and used for this purpose.” it added.
In 2014, the company issued 40 million perpetual preferred shares, generating net proceeds of P3.9 billion to be used for public-private partnership projects, development of renewable energy projects and bid preparation and preliminary works for PPP projects that Megawide would bid for.
These projects included the Mactan-Cebu International Airport. a regional prison facilities, the Southwest Integrated Transport System, and a public school infrastructure project phase 2.