Megawide Construction Corp. said Monday it reallocated its programmed spending for the Ninoy Aquino International Airport Rehabilitation project to fund the expansion of other infrastructure projects.
Megawide said in a disclosure to the stock exchange it would re-channel P1.2 billion in proceeds from the recent P4.4-billion preferred shares offering for the expansion of the Parañaque Integrated Terminal Exchange and development of other landport terminals in the country.
The company earlier allocated P1.2 billion for the initial development of the NAIA project, but the government revoked Megawide’s original proponent status for the rehabilitation of NAIA in January, citing the company’s lack of financial capacity.
“Our proof of concept and actual operational track record for the PITX landport has led to new expansion opportunities,” Megawide chairman and chief executive Edgar Saavedra said.
“Activities over the last six months in this space have been very encouraging and the company has been in advanced discussions with representative parties in several areas identified as potential landport locations. We are hopeful that these will be finalized before the end of the year to scale up our company’s existing transport-oriented development infrastructure,” he said.
Megawide earlier said it planned expand PITx as foot traffic in the terminal was nearing pre-COVID levels, ranging from 56,000 to 60,000 commuters per day.
The expansion of PITx would require a capital spending of P4.5 billion for the construction of more bus bays and terminals and expansion of additional commercial and retail spaces.
Megawide also bagged the Cebu Integrated Transport Hub Project, which involves the redevelopment of the Carbon market.
Phase one of the project involves the construction of a new public market, a night market and other commercial establishments, transport and ferry terminals, a new Sto. Nino Park and a chapel.
Phase 2 involves potential mixed-use development, including hotel, retail and convention center.
Megawide said it would increase the capacity of ancillary business units under the engineering, procurement, and construction platform.
“In addition to the company’s EPC business unit, these projects will likewise require huge support from its precast business unit and other ancillary services, which include the batching plant, modern formworks, specialized equipment and transport logistics, among others, to leverage on the Company’s vertically-integrated construction advantage,” Saavedra said.