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.”

“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

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.