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Megawide says P2.8-B offering proceeds used for various projects

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MEGAWIDE.COM.PH

MEGAWIDE Construction Corp. on Tuesday said it has utilized P2.77 billion from the net proceeds of its 2020 preferred share offering for various infrastructure projects.

From the net offering proceeds of P4.33 billion, the company has released P2.77 billion, the listed construction company said in a regulatory filing on Tuesday.

“Balance of the offering proceeds as of Dec. 31, 2022, is P1.56 billion,” it noted.

As of Sept. 30, Megawide has utilized P77.87 million for the Mactan Cebu International Airport (MCIA) multi-use development, P133.49 million for the expansion of pre-cast and other ancillary business, P816.13 million for the expansion of MCIA under a concession agreement, P883.40 million for the development of Cebu Integrated Transport Hub, and P331.56 million for general corporate purposes.

For the quarter that ended Dec. 31, 2022, the company released P144.20 million for the expansion of pre-cast and other ancillary business and P383 million for the development of the Cebu Integrated Transport Hub.

The MCIA mixed-use development project involves the construction of a 400-room hotel, a meeting, incentives, conference, and exhibition facility, and a travel retail concept to complement the airport’s features.

Megawide also expects that the demand for pre-fabricated construction materials will rise under the new normal. Hence, the company is expanding its pre-cast plant capacity to approximately 40,000 cubic meters per month (cu/m/month), from the current 13,000 cu/m/month, in different locations in the country.

The company also has a proposal to extend its existing concession agreement in MCIA by another 25 years. It involves the takeover of the airside facility, rehabilitation of the existing runway and taxiways, construction of an additional full-length parallel taxiway, and development of additional rapid exit taxiways and runway holding positions.

At the same time, the proposal involves the construction of a second parallel and independent instrument runway, as well as the construction of Terminal 3.

Megawide is also developing a modern public market and an integrated multi-modal transport hub in Cebu.

The project involves the redevelopment of the existing public market, including the construction of a new wholesale market, new night market, and other lifestyle commercial establishments, land transport, and ferry terminals, among others. — Arjay L. Balinbin