Cebu Airport Expansion Clears Path for Future Large-Scale PPPs in Philippines
Publication Date:
Jan 11, 2016
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The PHP33 billion ($747 million) Mactan Cebu International Airport expansion project marks the Philippines’ first large-scale PPP to reach financial close under the Aquino administration.
Awarded to GMR Megawide Cebu Airport Corporation, the 25-year concession includes building a new terminal, expanding capacity from 4.5 to 15 million passengers annually by 2019. It attracted strong international interest and blended local and foreign financing, including a $75 million loan from ADB and PHP20 billion from local banks.
The project’s success demonstrates the viability of foreign investment in Philippine PPPs and sets a precedent for future large-scale infrastructure projects, countering perceptions of market exclusivity.
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