Page 56 - Forbes - Asia (October 2019)
P. 56
The Philippines’ 50 Richest
Mactan-Cebu International Airport
Saavedra’s bid laid down a firm challenge:
that his company’s affordable engineering
solutions give it a competitive advantage
over its big-money rivals.
India’s international Megawide, an engineering and
airports in Delhi and infrastructure developer with a market
Hyderabad, have proven capitalization of only 39.5 billion
they can successfully pesos, believes it still stands a chance
operate an airport in to grab the project when its rival’s offer
the Philippines. After is put up for a competitive challenge
improving Cebu’s facili- later this year. It won’t be easy: The
MEGAWIDE’S ABILITY to build ties, they convinced several airlines to NAIA Consortium in May revised its
faster for less became a big advantage use Mactan-Cebu as a hub for their proposal, cutting its projected cost to
when it began bidding to build and international flights instead of Manila. 105 billion pesos and the concession
operate infrastructure projects tendered Over the past three years, the number period to 15 years. Saavedra remains
by the government under its public- of airlines using the facility has more optimistic. “Do you think a property,
private partnership (PPP) scheme. So than doubled to 25 and Cebu’s airport food or retailing company would be
in 2012, Megawide built an even bigger traffic has grown by 44% to 11.5 mil- more technically competent that a
prefabrication plant that allowed it to lion passengers. construction company in infrastruc-
prefabricate not only walls and floors for Last year, revenue from Cebu’s air- ture?” The NAIA Consortium did not
high-rise structures, but also compo- port operations rose 35% to 3.3 billion respond to requests for comment.
nents for roads, light rails and tunnels. pesos, accounting for a fifth of Mega- Since establishing a foothold in
Between 2010 and 2016, the compa- wide’s total revenue. Megawide’s experi- airports, Megawide is preparing to
ny won four PPP infrastructure projects ence running the Cebu airport may expand further into infrastructure by
from the government of then-President yet give it a chance to win the NAIA teaming up with more experienced
Benigno Aquino III. These included redevelopment project. The contract companies abroad. “We’re partnering
the 25-year concession to upgrade and was initially awarded to an alliance of with Korean and Chinese companies
operate the Mactan-Cebu International seven of the country’s biggest conglom- to [build] toll roads, rail projects and
Airport, the country’s second-biggest erates, the NAIA Consortium, which other [developments],” says Saavedra.
airport, which it won in April 2014 in is controlled by some of its wealthiest Learning from more experienced
partnership with GMR. citizens, which submitted a bid for 350 partners is key to Saavedra’s growth
By 2017, it had group revenue of billion pesos and a 35-year concession. strategy, he says, citing lessons Mega- SONNY THAKUR FOR FORBES ASIA
19.2 billion pesos. Apart from winning With a combined capitalization of 2.2 wide has learned on running airports
projects, Megawide and its partner for trillion pesos, its members have inter- from GMR. “That’s the reason why we
airport ventures, GMR, which runs ests in real estate, retail and food. are confident,” he says. F
54 | FORBES ASIA OCTOBER 2019
