Megawide shifts share-sale proceeds to PITx, Cebu project

    The Parañaque Integrated Terminal Exchange.

    Megawide Construction Corp. said it is realigning budget from its shelved proposal to rehabilitate the Ninoy Aquino International Airport (NAIA) to the Paranaque Integrated Terminal Exchange (PITx).

    The amount will be sourced from the P4.4-billion preferred share sale the company had last year, in preparation for big-ticket projects it has lined up, worth P1.2 billion.

    Given that the NAIA project was shelved by the government in December last year citing the alleged lack of capacity of Megawide to finance the P32- billion project, the company said the amount it has raised for the project is now free cash that it can use for other purposes.

    Megawide said PITx lot 2 development will now include other potential landport locations across the country.

    “Our proof of concept and actual operational track record for the PITX landport has led to new expansion opportunities,” said Edgar Saavedra, Megawide chairman.

    “Activities over the last six months in this space ha(ve) 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,” Saavedra added.

    The amount will also be used for its Cebu Integrated Transport Hub joint venture agreement with the Cebu City where the company will redevelop and operate the Carbon Market for 50 years in exchange.

    “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,” Saavedra said.

    Megawide is also increasing the capacity of its ancillary business units under its engineering, procurement, and construction (EPC) platform to complement its pre-cast technology.

    Saavedra said Megawide “believes government’s rollout 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 said.