A joint venture between GMR Infrastructure (40% shareholding) and Megawide Construction Corporation (60% shareholding), GMR-Megawide Cebu Airport Corporation (GMCAC) has signed financing documents for the Mactan Cebu International Airport in Cebu, Philippines.

Out of the total amount of $750m, the current financing deal will fund 70% of the project. The loan is being financed by a consortium of six banks.

GMR’s total equity contribution to GMCAC will be around $90m, out of which GMR has already invested $48m.

“The financial closure of the project signifies the confidence of the banks in the abilities of GMR and our partner Megawide.”

The consortium will take care of construction, development, renovation, expansion and operation of the airport for a period of 25 years under the concession agreement.

Speaking about the financial closure, GMR Infrastructure chairman GM Rao said: “The financial closure of the project signifies the confidence of the banks in the abilities of GMR and our partner Megawide. GMR Group has proven credentials in airport operations and modernization and we are confident that we will undertake this prestigious project in a timely manner and deliver an airport that Cebuanos and Filipinos will be proud of.”

GMR had bid for the Mactan-Cebu airport project along with Megawide Construction, which is considered to be one of Philippine’s leading construction firms.

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The GMR-Megawide Consortium had emerged as the highest bidder in the international competitive bidding process after offering a bid premium of approximately $305m. The formal award of the project in April was followed by a six-month transition period to complete project formalities leading to the transfer of operations to GMCAC on 1 November 2014.

As part of the master plan, GMCAC will build a new terminal building within the next three years to handle the growing traffic at the airport.