LAPU-LAPU CITY, Cebu—The Asian Development Bank (ADB) has approved a $75 million loan to a consortium of companies that will undertake expansion of the Mactan-Cebu International Airport (MCIA), which airport officials said will be operational within the year.
MCIA general manager Nigel Villarete said the expansion project included construction of a new terminal that would accommodate more than 12.5 million passenger every year.
“The MCIA has never been tagged as among the world’s worst airports and we hope that with its expansion and renovation within this year it will be named as among the world’s best airports,” Villarete said.
The project will be undertaken by GMR Megawide Cebu Airport Corp., a joint venture of India’s GMR Infrastructure and local company Megawide Construction Corp. GMR is the fourth largest private airport operator in the world.
The consortium will operate the airport under a 25-year concession agreement. It will involve the operation of two terminals as well as the commercial outlets.
Villarete said the new airport was expected to boost passenger traffic, support inclusive growth and mark the first large-scale public-private partnership awarded by the government.
The ADB said financing for the project include a debt of P20 billion from a consortium of Philippine banks made up of BDO Unibank, Bank of Philippine Islands, Development Bank of the Philippines, Land Bank of the Philippines, Metropolitan Bank & Trust Co, and Philippine National Bank.
“ADB’s involvement demonstrates its commitment to assist the government in developing critical infrastructure, the lack of which has been hampering new investments in the country,” said Christine Uy, Investment Specialist of ADB’s Private Sector Operations Department.
“The project will increase tourism and support industry and agricultural activity, thus creating employment opportunities in the province of Cebu and its neighboring provinces,” she said.
Cebu, which one of the fastest growing regions in the Philippines, is the gateway to Visayas and Mindanao. Mactan-Cebu Airport, which opened in the 1960s, was designed to serve up to 4.5 million passengers a year, but in 2014 it served more than 7 million.