$35-m equity investment in Cebu airport is aim of GMR
GMR spokesperson says that GMR and its partner plan to double the passenger capacity to 14 million per year in the next three-four years. The consortium consisting of GMR and Philippines’ Megawide Construction Corp was recently awarded a 25 year contract for the development of the country’s second largest airport.
The spokesperson says that the total investment in the project is calculated at nearly$700 million. GMR will contribute 40 percent of the total amount which is nearly $325 million as upfront payment.
Mr. Sidharath Kapur, chief financial officer, Airport, says that this is likely in the ratio of 70 percent debt and 30 percent equity which is not finalized yet. Their equity investment over next 3 years is expected to nearly $35 million to $40 million.
The GMR Infra scrip collects nearly 5.5 percent to on BSE and it closed at Rs 24.50 per share with the increase of Rs 1.25. Trade volume increased nearly two-fold from its 30-day average volume.
The shares of GMR Infra has increased 18.35 percent in last 30 days. The stock has given the return of 130.04 percent after touching 52 weeks low of Rs 10.65.
Philippines had awarded the $390 million Mactan-Cebu International Airport rehabilitation, expansion and operation project to the GMR-Megawide Consortium for a 25-year concession period, recently. In next 3 to 4 years GMR and its partners will modify Mactan Cebu’s passenger terminal which was originally developed to handle 4.5 million passengers per year but touched the 7 million mark in 2013.
The consortium will also developed a separate terminal over the next few years designed for international flights and operate with the improved facility.
GMR’s spokesperson says that the current capacity of Mactan-Cebu International Airport is nearly 5 million while the traffic is nearly 7 million. In the next 4 years the capacity will be increased to 14 million per year.
He further added the current revenue of the airport is nearly $35 million.
Mr. Kapur also added that Mactan-Cebu International Airport is currently cash generating airport and there will be cash generation from this airport from day one, which will help to the development cost of the project.
Source: The Financial Express
Airport, Bombay Stock Exchange, BSE, GMR, GMR Infrastructure, Mactan-Cebu International Airport, Philippines’ Megawide Construction Corp, Sidharath Kapur
