Megawide Construction Corp. on Monday said it signed a deal with the Cebu City government for the redevelopment of Cebu Carbon Market, for which it will spend some P5.5 billion.
In its disclosure, the company said its joint venture agreement includes construction, development, and operation of mixed-use assets on the project site.
Its agreement with the local government will run for 50 years, and can be extended for another 25 years upon mutual agreement of the parties.
“On the other hand, the city, as its participation in the joint venture, shall contribute the exclusive use and possession of the project site,” the company said.
Megawide in November raised some P4.36 billion in fresh funds from the sale of its series 2A and Series 2B preferred shares, proceeds of which will be used to fund its existing projects in Parañaque and Cebu.
“We are extremely heartened at the market’s vote of confidence in Megawide’s financial strength, our business prospects and future growth coming from our focus on delivering transformative infrastructure projects such as our proposal to rehabilitate and transform NAIA into a first world airport,” Edgar Saavedra, the company’s chairman and CEO, said.
The proceeds from the issuance will be used to fund its runway for growth program, which primarily includes the development of the 1.7-hectare Lot 2 at the Parañaque Integrated Terminal Exchange, expansion of its precast capacity and initial design stages for the Mactan-Cebu International Airport multi-use development.