Despite ongoing legal issues, the GMR-Megawide consortium signed the concession agreement with the Philippines’ Department of Transportation and Communications (DOTC) and Mactan Cebu International Airport Authority (MCIAA) for expanding the Mactan Cebu International Airport (MCIA). The concession agreement was signed after the consortium paid US$320 million as an upfront premium. GMR is in a 40:60 joint venture with the Philippines-based Megawide Construction and as much as 70 per cent of the $320 million has been raised from a major bank in that country.
At present, the Mactan Cebu International Airport can handle seven million passengers a year. The plan is to double the capacity to 14 million in the next five years. GMR-Megawide plans to develop the Mactan-Cebu International Airport into a regional hub in the Philippines, creating passenger & cargo traffic growth, bringing jobs for the local community, giving a boost to the tourism traffic and creating multiplier economic benefits for the region.