Megaworld keen on NAIA PPP project
January 4, 2017
MEGAWORLD Corp. is interested in bidding for the P74.6-billion public-private partnership (PPP) project to upgrade the Ninoy Aquino International Airport (NAIA).
The listed property developer is open to looking at PPP projects related to its real estate business, Megaworld Senior Vice-President Kevin L. Tan told BusinessWorld in a recent interview.
“We’re always looking for opportunities to expand and diversify our business, especially if it has some relation to our core businesses which are real estate, tourism, and FMCG (fast-moving consumer goods). So of course, the NAIA project is something that we are always interested to understand and be updated on, because it also has very strong real estate component,” Mr. Tan said.
The National Economic and Development Authority (NEDA) approved in September the project to upgrade all four terminals of the country’s main gateway, on top of eight other key projects worth a combined P96.7 billion.
The NAIA Development Project includes operation and maintenance of the country’s main gateway to be offered to investors, with a 15- to 20-year concession agreement targeted to be signed in September this year.
On the possible NAIA bid, Megaworld is exploring opportunities for a possible partnership although no firm plans have been finalized yet.
“We are always open to talking to partners, we have some discussions with some people but I’m not at liberty to say who right now but we’re always open to talking. Right now, there’s nothing final, we’re just talking, we’re just exploring, we’re still studying. The terms of reference for the project has not been announced yet, so we don’t know yet where to begin but we are studying,” Mr. Tan said.
Megaworld was part of Trident Infrastructure and Development Corp., a consortium that included Aboitiz Equity Ventures, Inc., Ayala Land, Inc., and SM Prime Holdings, Inc., which was earlier supposed to bid for the P123-billion Laguna Lakeshore Expressway-Dike PPP project.
The property giant is also interested in other PPP projects in the government pipeline as long as it is aligned with its existing core businesses.
“Right now, we’re looking not only at this. We’re also looking at others as long as there’s real estate component, or tourism component, then we’ll be very interested to look at it,” said Mr. Tan, who also heads Megaworld Lifestyle Malls.
Megaworld is part of Alliance Global Group, Inc., the holding company for billionaire Andrew L. Tan’s real estate, liquor, tourism-entertainment and gaming, and quick service restaurant businesses.
Aside from Megaworld, other top conglomerates Metro Pacific Investments Corp., San Miguel Corp. and Ayala Corp. have shown an interest in the NAIA PPP project.
Asia’s Emerging Dragon Corp. (AEDC) of Philippine Airlines (PAL) owner Lucio C. Tan already said it is prepared to make a bid for the P74.56-billion NAIA Development Project, along with Aboitiz Equity Ventures and Megawide Construction Corp.
Shares in Megaworld slipped less than a percent to P3.54 apiece on Tuesday. —Business World Online
