We were appointed as lender’s technical advisor by BDO Capital & Investment Corp. (BDO Capital), Asian Development Bank (ADB) and International Finance Corporation (IFC) and a consortium of Philippine lenders who won the competitive bid for the Mactan-Cebu International Airport 25-year concession.
The concession consists of the existing T1, a new international T2 and the associated landside and apron to support the terminals. Traffic at the airport is forecast to grow from 7M passengers in 2013 to 28M by the end of the concession period. The new international terminal will have an ultimate capacity of 8M passengers.
As well as being the first PPP of its kind in the Philippines, a further complexity of this project lies in the government retaining control of the runway and main taxiways.
We undertook a full suite of due diligence covering the existing condition of assets, a review of the proposed design, environmental aspects, operations and maintenance, CAPEX, OPEX and the financial model. We also produced independent traffic and revenue forecasts, which included a full set of government and private stakeholder interviews at local, regional, national and international level. We provided support to BDO Capital, ADB and their partner banks and professional advisors as they moved towards financial close.
Value and benefits
We applied our expert knowledge of the ASEAN market, staff knowledge of the Phillipines, and our knowledge of industry players from other projects around the world.
We used benchmarks from other PPP deals and experienced examples from other complex concessions from around the world.
Having advised on the concession competition meant we were already familiar with the project and could quickly identify key risks and overcome challenges.
Thank you. Your efforts and that of the team is much appreciated in this project!