Listed firms Metro Pacific Investments Corp. (MPIC) and JG Summit Holdings, Inc. have entered into an agreement to jointly bid for the P17.5-billion Mactan-Cebu International Airport Passenger Terminal Project.

The joint venture, MPIC-JGS Airport Consortium, Inc., will be controlled by MPIC. JG Summit owns 33% while an unidentified airport operator holds a 10% stake.

The joint venture would enable MPIC to merge its capability in infrastructure development such as water utilities and electricity distribution with JG Summit’s expertise in real estate, property development and air transportation.

The consortium intends not only to bid for the rehabilitation and expansion of the Mactan-Cebu International Airport but to explore other airport projects that may be rolled out by the government.

With a combined market capitalization of P398 billion, MPIC and JG Summit are pooling resources in what is expected to be a stiff race to redevelop the Mactan-Cebu airport, the country’s second-biggest international gateway, under a public-private partnership framework. The Ayala and Aboitiz conglomerates earlier teamed up for the project while another strong contender is San Miguel Corp., the lead operator of Caticlan airport, the gateway to the world-famous Boracay island.

Photo from www.mciaa.gov.ph/MCIA/photos.htm

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