The contract was awarded by the Department of Transportation and Communications (DOTC) of Philippines.
The USD 700 million project includes USD 320 million upfront payment to the Philippines government, a GMR Group official said here.
Meanwhile, DOTC Spokesperson Michael Arthur Sagcal, in a release, said the 25-year concession was awarded to GMR-Megawide yesterday following several months of reviewing various legal questions raised by a bidder in connection with the Airport project,
Amid all the noise drummed up in different forums during the past few months, the DOTC has allowed nothing but the law and the countrys interests to matter in awarding the project, he said.
"Finally, Cebuanos will soon get the world-class airport they deserve one that will not only boost the provinces economy and tourism industry, but the whole countrys as well," Sagcal said.
"We have resolved all issues, we are ready to defend our decision, and it is now time to push forward on Daang Matuwid by delivering our services to the people," Sagcal added.
Megawide is a Philippines based construction company.
GMR Infrastructure Ltd, in a filing with BSE, said it intends to develop Mactan-Cebu Airport as a region hub in Philippines, creating passenger and cargo traffic besides jobs for local community.
"We firmly believe that GMR-Megawide consortium has right credentials and capabilities to undertake this prestigious project and deliver an airport that Cebuanos and Filipinos will be proud of," GM Rao, chairman GMR Group said in the statement.
In the bidding conducted in November last year, the GMR-Megawide Consortium proposed to undertake the project, which entails renovating the existing passenger terminal building (PTB), building a new one to service international flights, and operating the airport.
It would involve upfront payment premium of 14.4 billion Peso (over USD 320 million).
GMR-Megawide will now have 20 days to complete the post-award requirements, such as the submission of an irrevocable letter of credit in the amount of 180 Million Peso and the payment of the premium amount to government through the Mactan Cebu International Airport Authority (MCIAA).
Once the requirements are satisfied, the concession agreement will be signed by the parties, paving the way for the implementation of the project over the next 3-4 years.