MANILA, Philippines - Gokongwei-led JG Summit Holdings Inc. and Pangilinan-led Metro Pacific Investments Corp. (MPIC) on Monday signed a deal to form a joint venture to bid for the P17.5 billion Mactan Cebu international airport project.
The two conglomerates signed a memorandum of agreement to form an exclusive strategic partnership to jointly pursue and bid for the Mactan Cebu airport project.
The joint venture called "MPIC-JGS Airport Consortium, Inc." will be majority-owned by MPIC, and 33% by JG Summit. Ten percent will be owned by an airport operator partner.
"Integrating both our management expertise, corporate governance adherence and solid track record in developing large-scale infrastructure projects will strengthen the capabilities of the airport in responding to the needs of both passenger and airline customers. Achieving world-class status and modernization for our fast-growing air transport sector will be better served as we join hands in the reforms that will contribute to the growth of the country’s economy," MPIC Chairman Manuel V. Pangilinan said in a statement.
JG Summit President and Chief Operating Officer Lance Gokongwei said this will be the company's first venture in infrastructure development.
"Their (MPIC) experience in developing public infrastructure projects and in bidding for the same under the government’s current PPP system, brings great value to this partnership. We hope to grow the airport into a real efficient and commercially viable hub for both leisure and business travelers flocking to the faster-growing southern part of the country," Gokongwei said.
The consortium will not just bid for the Mactan Cebu project but also explore other airport projects.
Earlier, Gokongwei said he would like to work with Pangilinan on future bids
for other airport projects. "It will not be (a one-off thing)... With regards to airport bids, we would like to work most closely with MetrPacific," he said on ANC's Inside Business.