21 August 2020
Megawide Construction Corp. and partner GMR Infrastructure Ltd. of India hit a wall Wednesday when National Economic and Development Authority Investment Coordination Committee(NEDA-ICC technical Board) flagged down consortium's propose US$3 billion dollars investment for the rehabilitation, operation and development of Ninoy Aquino International Airport (NAIA) for 18 years.
NEDA noted a problem on the proposed financing plan as it does not show how Megawide consortium could adequately meet the Construction cost as well as the operating and maintenance costs requirements of the project.
Megawide said the funds will be provided by their partners GMR, but their proposal does not speak of joint liability.
“There are issues on financial capacity and the joint and several liability agreement of the consortium,” Transportation Undersecretary for Planning & Project Development Ruben S. Reinoso said.
“There appears to be a liquidity shortfall,” the Transport official said.
Reinoso disclosed he is meeting again with the proponent next week to discuss the outstanding issues raised by the NEDA-ICC and if this was complied already before it can continue talks on swiss challenge.
The Philippine Competition Commission (PCC) earlier approved the AĆ©roports de Paris SA’s (AdP) acquisition of a 49 percent-stake in GMR Airports Limited (GMR) valued at US$ 1.4 billion for its investment in the Philippines and Asia Pacific.
The transaction involve a 24.99% indirect stake purchase in GMR, plus another 24.01% direct acquisition of the firm.
Groupe ADP completed payment to GMR Airports of €532 million in July 2020. Part of this fund is expected to be earmarked for Manila airport offer.