India’s GMR Group plots big comeback to PH airports
Three years after exiting the Mactan Cebu International Airport concession, GMR Group of India is plotting a big comeback into the Philippine airport scene as new opportunities open up.
During a meeting with top executives in his recent visit to India, President Marcos obtained “firm commitment” from the Indian firm to help develop the Sangley Aerocity and the Sangley Point International Airport (SPIA) in Cavite.
Beyond Sangley, GMR also expressed interest in other regional airports whose operations may be privatized by the Marcos administration, including the gateways in Laoag, and Siargao.
Trusted partner
“GMR has been a trusted partner of the Philippines since 2014 and is widely recognized for its successful delivery of the Mactan-Cebu International Airport and new passenger terminal at Clark despite the pandemic,” Trade Secretary Cristina Roque said in a press statement on Thursday.
“The Philippines is fully committed to improving its connectivity within its 7,600 islands and the whole world, and I believe the GMR Group shares the same commitment with us in their latest project,” she added.
GMR’s commitment to the SPIA project, the trade chief said, signaled a “strong” partnership aimed at decongesting Ninoy Aquino International Airport and bolstering regional connectivity.
During his recent trip to India, Mr. Marcos met with GMR Group Business chair (Energy and International Airports) Srinivas Bommidala and his local partners, Cavitex Holdings Inc. and House of Investments, to discuss the SPIA project.
The president recognized the strategic importance of the project, noting its potential to create up to 15,000 jobs and generate an estimated $500 million in government revenue.
Mr. Marcos also said the national government was actively working with the Cavite provincial government to expedite land-related approvals, ensuring the project would stay on track.
GMR is thus coming in as a partner of the Virata-Yuchengco-led SPIA Development Consortium, which bagged in 2022 the contract to build and operate the $11-billion airport after hurdling the competitive challenge set by the Cavite local government.
Track record
But aside from the Sangley project, Roque took note of GMR’s interest in provincial airport developments, as she expressed confidence in the Indian group’s “proven track record.”
The consortium previously formed by GMR and Megawide Construction Corp., although a dark horse then, successfully won the bidding for the Cebu airport rehabilitation in 2014. In 2022, however, GMR and Megawide agreed to sell the concession to Aboitiz InfraCapital.
But new opportunities are now emerging. Transportation Secretary Vince Dizon earlier announced plans to privatize the operations and maintenance of 10 regional airports by 2028.
During a forum hosted by the Economic Journalists Association of the Philippines in June, Dizon said these are the airports in Iloilo, Davao, Siargao, Laoag, Busuanga, Bicol, Tacloban, Bacolod-Silay, General Santos and Puerto Princesa. Some of these may be bundled to attract bigger players, Dizon had said.
