Megawide Construction and India-based airport operator GMR Infrastructure have won a contract for the expansion of Clark International Airport in the Philippines.

The contract was awarded by the Philippines Bases Conversion and Development Authority (BCDA) and the Department of Transportation.

The contract covers the engineering, procurement, and construction of a new terminal. The airport will see an additional eight million passengers each year from the new terminal building.

Construction of the Clark International Airport’s new terminal building will be a public-private partnership (PPP) project, which is expected to start this week. The project is scheduled to be completed in 2020.

“The airport will see an additional eight million passengers each year from the new terminal building.”

The government estimated the project to cost PHP12.55bn ($248.7m). However, the Megawide-GMR partnership won the contract by offering the lowest financial proposal at PHP9.36bn ($185.5m).

Other bidders for the Clark Airport expansion project include China State Construction Engineering Corporation, China Harbour Engineering Company, and the consortium of Tokwing Construction Corporation and China Machinery Engineering Corporation.

Upon becoming operational, the Clark International Airport will help decongest the Ninoy Aquino International Airport in Manila.

The expansion is one of the high-impact projects under the Duterte administration’s ambitious ‘Build, Build, Build Infrastructure Programme’. Other projects include the Subic-Clark Cargo Railway, Manila-Clark Railway, and the New Clark City.

Previously, the Megawide-GMP partnership was awarded the first PPP project for expanding, operating and maintaining the Mactan-Cebu International Airport in the Philippines.