Megawide – GMR’s mixed-use development project at MCIA on hold due to COVID

MEGAWIDE Construction Corp. and its foreign partner GMR Infrastructure Ltd. have put on hold the implementation of their mixed-use development project at the Mactan-Cebu International Airport (MCIA), which covers the construction of a 400-room hotel, due to the coronavirus pandemic.

“Yes, still on hold because of COVID-19 (coronavirus disease 2019),” Corporate Communications Officer Anna Karenina M. Salgado told BusinessWorld in a Viber message on Monday.

A report of independent auditors on factual findings published by Megawide on Monday said the P3-billion project “has completed the final design and concept stages, but is currently on push-button mode and will be re-evaluated on when initial development will commence, subject to resumption of normalcy of travel and airport operations and the project’s overall value creation to all its stakeholders.”

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“The initial plans involve the construction of a 400-room hotel, a meetings, incentives, conference, exhibitions (MICE) facility, and a travel retail concept to complement the airport’s features,” P&A Grant Thornton said in its report.

It added that the long-term prospects “remain sound,” citing Cebu’s ideal location as a tourism and business hub.

“The project development timetable of 2-3 years provides enough time for the situation to revert back to pre-COVID environment,” it also said.

Last week, Megawide announced that it had signed a joint venture agreement with Cebu City for the redevelopment of the Cebu Carbon Market.

The company would be investing P5 billion in the project.

Megawide shares on Monday closed 0.85% lower at P8.14 apiece. — Arjay L. Balinbin

#realestateblogph | #realestateblogphpropertynews | #REBPH | #realestate | #infrastructure | #airport | #NAIA | #MegawideConstruction | #Megawide

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Article and Photo originally posted by Business World last January 19, 2021, 12:05. Minor edits have been made by REBPH to cater to its own readers.

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