MANILA – Megawide Construction Corp. boosts funding for its organic projects as it reallocates the use of proceeds (UOP) from its PHP4.4 billion issuance of Series 2 preferred shares last year.
In a disclosure to the Philippine Stock Exchange, the company said the PHP1.2-billion initial allotment for the Ninoy Aquino International Airport (NAIA) rehabilitation project will be rechanneled to the expanded scope of existing projects.
Specifically, the Parañaque Integrated Terminal Exchange (PITx) Lot 2 development will now include other potential landport locations across the country.
Megawide chairman and chief executive officer Edgar Saavedra said the company’s proof of concept and actual operational track record for the PITx landport has led to new expansion opportunities.
"Activities over the last six months in this space have been very encouraging and the company has been in advanced discussions with representative parties in several areas identified as potential landport locations. We are hopeful that these will be finalized before the end of the year to scale up our Company’s existing transport-oriented development infrastructure,” he said.
The Cebu integrated transport hub project will also get a boost as the joint venture agreement with the local government of Cebu City was executed last January 12 for a 50-year concession to redevelop and operate the Carbon Market.
As such, the project will require pre-development and logistical expenses in line with its five-year development timetable, which aims to further accelerate economic growth and development in Cebu.
In addition, Megawide is also increasing the capacity of its ancillary business units under its engineering, procurement, and construction (EPC) platform to complement its state-of-the-art pre-cast technology.
The company believes that the government’s roll-out of major infrastructure projects, like the Malolos-Clark Railway project, the North-South Commuter Rail Project-South Line, and the subway system project, opened up opportunities and will be the driving force for its infrastructure pivot.
“In addition to the company’s EPC business unit, these projects will likewise require huge support from its precast business unit and other ancillary services, which include the batching plant, modern formworks, specialized equipment and transport logistics, among others, to leverage on the company’s vertically-integrated construction advantage,” Saavedra added. (PR)
