LISTED construction firm Megawide Construction Corp is set to submit an unsolicited proposal within the first quarter of 2018 for the redevelopment of Ninoy Aquino International Airport (NAIA) in tandem with state-run entities.
In a news conference in Quezon City on Friday, Social Security System (SSS) Chairman Amado Valdez said that SSS had created a joint task force with Megawide and the Bases Conversion Development Authority (BCDA) to look into the feasibility of participating as a consortium for the redevelopment of the country’s main gateway.
“We have created a joint task force with Megawide. We’re looking into some possible joint development with BCDA, with Megawide as our construction partner. We are looking into the feasibility of participating as a consortium in the redevelopment of NAIA,” Valdez said.
“We are very happy because … the public fund is investing in our company so this is a show, a vote of confidence,” Megawide President Edgar Saavedra said in the same conference.
“We want to partner also with SSS to be one of the consortium members [because], you know, we want to help also SSS. As they mentioned, they want to have better, higher yields,” Saavedra said.
Valdez said he hopes SSS and Megawide could agree on good terms for the partnership. “Hopefully the synergy could result in better yield in terms of recurring income because we are looking forward to substantial recurring income from the present project of Megawide—that’s the Cebu airport, which will be open by June, and the terminal at South West Terminal in Paranaque,” he added.
“As you see, it’s all something that will touch the common man. These projects will directly now affect our members, so we are doing this for our members, so when they will be sitting in that airport, then they will feel that they are part of it.”
Upon submission of its proposal, Megawide will be the second consortium to bid for the rehabilitation of NAIA.
In December last year, seven of the country’s biggest conglomerates formed a ‘super consortium’ to for the right to undertake the NAIA rehabilitation.
The seven conglomerates include Aboitiz Infra Capital, Inc., the Ayala Group’s AC Infrastructure Holdings, Inc., Andrew Tan’s Alliance Global Group, Inc., Lucio Tan’s Asia’s Emerging Dragon Corp., Gotianun’s Filinvest Development Corp., Gokongwei’s JG Summit Holdings, Inc., and Pangilinan-led Metro Pacific Investments Corp.
SSS now Megawide investor
Valdez announced the possible tandem of Megawide and SSS during a ceremonial signing on Friday marking SSS’ entry into Megawide as an institutional investor with a 5.17 percent stake. Valdez said SSS is looking to further increase this stake to a size equivalent to one board seat.
In January this year, SSS announced that it had acquired a 5.17 percent stake equivalent to 110.53 million shares in Megawide as it aims to take advantage of the booming economy amid the Build, Build, Build program of the government.
“We see investments in the infrastructure sector as viable, given the level of funding being poured by the public and private sectors into the infrastructure drive and the volume of projects across the country,” Valdez said.
Apart from NAIA, the Megawide-SSS consortium is also looking at other key projects such as highways, railways, and other airports.
“To add to that, we have submitted a rail project—the East-West Rail Project. So potentially this could also be a sector where we can submit more rail [projects]. As we know, we need more rail projects in Manila,” Saavedra said.
Last year, Megawide bagged several projects including the expansion of Clark International Airport, and that of Cebu-Mactan International Airport in partnership with India-based GMR Infrastructure.