GMR-Led consortium competes for $3 bn Manila Airport upgrade contract

02 Jan 2024 CW Team

As per local media reports, a consortium led by the GMR Group is actively competing for a $3 billion contract to upgrade and manage the Manila International Airport in the Philippines. The consortium, comprising GMR Airports International BV along with local partners House of Investments Inc and Cavitex Holdings Inc, aims to enhance terminals, expand passenger capacity to over 60 million annually, and implement technological advancements at the Ninoy Aquino International Airport, the country's primary entry point, as outlined by the Philippine Transportation Department. The concession period spans 15 years and is potentially extendable by an additional 10 years.

Rivaling bids for the project include those from the Manila International Airport Consortium, the Asian Airport Consortium, and SMC SAP & Co. The Philippine government is anticipated to reveal the winning bidder in the first quarter of 2024, with a rigorous evaluation of technical qualifications and financial capabilities for all bidders in the upcoming weeks.

The GMR Group is not new to airport operations, currently managing the Mactan Cebu International Airport, the second-largest in the country, in collaboration with the Philippines' Megawide Construction Corp. Additionally, the group oversees operations at Indonesia's Kualanamu International Airport and is in the process of constructing the Crete International Airport in Greece.

On the domestic front, GMR manages airports in Delhi, Hyderabad, and North Goa, while concurrently working on the development of a greenfield international airport in Bhogapuram, Andhra Pradesh. Notably, GQG Partners, led by Rajiv Jain, recently acquired a 4.7 per cent stake worth Rs 16.71 billion in GMR Airports Infrastructure Ltd. earlier this month.

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