JG Summit forms partnership to bid for Mactan-Cebu project

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Philippine conglomerate JG Summit, the parent company of Cebu Pacific, has formed a partnership with infrastructure investment company Metro Pacific Investment Corp (MPIC) to jointly bid for an expansion project at Mactan-Cebu International Airport.

Under the agreement, the joint venture, to be called MPIC-JGS Airport Consortium, will be majority owned by MPIC. JG Summit will take a 33% stake, while an unnamed airport operator partner will hold another 10%.

Besides bidding for the Mactan-Cebu airport project, the consortium could also bid for future airport projects to be rolled out by the government, JG Summit said in a statement on the Philippine Stock Exchange.

"JG Summit is happy to partner with MPIC in this, our first venture into infrastructure development," says its president and chief operating officer Lance Gokongwei.

"We hope to grow the airport into a real efficient and commercially viable hub for both leisure and business travellers flocking to the faster-growing southern part of the country."

JG Summit's partnership with MPIC comes despite the document for prospective bidders specifying that it "cannot be an entity providing air transport services [airlines] in the Philippines", nor have an interest in such an entity.

San Miguel, which holds a 49% stake in flag carrier Philippines Airlines and its low-cost partner Air Philippines, has also confirmed that it will bid for the project, and seek clarifications to the provisions in the documents, if necessary.

The Mactan-Cebu airport project, under the government's public-private partnership scheme, includes the construction of a new passenger terminal, which will have a capacity to handle 8 million passengers annually. It also includes the operation of the airport's old and new facilities.