MANILA, Philippines – Megawide Construction Corp. is planning to raise P5 billion to participate in the bidding of more infrastructure projects under government’s public-private partnership (PPP) program.
Megawide chief finance officer Oliver Tan said Megawide will participate in more PPP projects despite already winning four projects, including the P17.5 billion Mactan-Cebu international airport expansion project in partnership with GMR Infrastructure.
The Megawide-GMR group submitted the highest bid of P14.4 billion for the project last December.
Megawide obtained shareholders' approval to increase capital stock to P5 billion either through debt or the equities market.
"We are still considering whether to raise the P5 billion through bank borrowings or through the equities market," Tan said.
He added that preferred shares were created to give Megawide the flexibility if it sees the need to raise fresh capital.
He said the firm also has the option to borrow from local banks.
Last week, Megawide announced that it has earmarked $100 million to develop several renewable energy projects to help address the country's power shortage issues.
The firm said the funds will be used to build a portfolio of 100 megawatts of renewable energy, including biomass, hydro, wind, solar and geothermal, over the next two years.
Groundbreaking for a 3.5 megawatt biomass project in Northern Luzon, Megawide’s first power generation project, is scheduled by the end of the year.