Listed Megawide Construction Corp. is set to raise P2.9 billion through loans to bankroll the rehabilitation of the 68-year old Philippine Orthopedic Center in Quezon City.
The rehabilitation and modernization of Orthopedic Center is a build-operate-transfer project under the Private-Public Partnership (PPP) program of the government which involves the construction of a 700-bed super-specialty tertiary orthopedic hospital within the National Kidney and Transplant Institute compound along East Ave.
Megawide Chief Financial Officer Oliver Tan said in an interview with reporters on Wednesday that the company is almost done with the financing for the project, which involves securing loans from banks.
“We’re raising around P2.9 billion,” Tan said, explaining that the funding effort is syndicated and arranged by LandBank of the Philippines and involving two to three banks.
“It will be a long term loan. More than 10 years. We’re still working on it [terms],” he added.
The project, which will be under a 25-year contract, is valued at P5.7 billion and considered as the first PPP project involving a hospital.
The rest of the funding for the project, according to Tan, will be raised through internally generated funds.
“We are a growing company, so tapping the equity market was always an option but we don’t want to be diluted anymore. If there will be [more fund raising], probably stock rights offering because we don’t want to be diluted,” he further said.
Scheduled to open first quarter of 2017, the design phase for the project is expected to span six to eight months, while the construction is expected to start during the last quarter of next year.
A week ago, the consortium of Megawide and foreign partner GMR Infrastructure of India has topped the bidding for Mactan airport project.
Megawide, together with GMR Infrastructure, submitted the highest upfront bid premium of P14.4 billion for the project