MEGAWIDE Construction Corp. secured a P10.1-billion contract to construct Mandani Bay Quay Phase 2 in Mandaue City, Cebu, allowing it to breach its target for new contracts this year.
In a disclosure to the stock exchange on Wednesday, the engineering and infrastructure conglomerate said it was awarded the engineering, procurement, and construction (EPC) contract for the project by HTLand, Inc., a joint venture between Hongkong Land and Taft Property Venture Development Corp.
The project covers a floor area of 328,000 sq.m., where three 40-storey residential towers, one 30-storey office building, and commercial spaces are set to stand.
Megawide will start building the first tower this year, including the amenities area, commercial spaces, and parking level. This is scheduled to be completed by 2021.
The second and third towers will be completed within the first half of 2022 and first quarter of 2023, respectively. The office tower is scheduled for completion by the fourth quarter of 2022.
“With this large-scale, mixed-use development, we are solidifying Megawide’s engineering footprint in Cebu. It is truly a first-world project and we are committed to delivering the highest standards of engineering and construction,” Megawide Chairman, President, and Chief Executive Officer Edgar B. Saavedra said in a statement.
This allows the company to further expand its footprint in Cebu, where it also operates the Mactan-Cebu International Airport in a consortium with Indian firm GMR Infrastructure Ltd.
“We are further strengthening our operational efficiency in the region. It will be a good complement to our airport operations and our other ongoing EPC projects in the area,” Mr. Saavedra said. In March, Megawide was tapped by the Gaisano group to develop Taft East Gate Phase 1 in Cebu City under a P2.5-billion contract.
The HTLand deal is the largest Megawide has signed under its construction segment this year, allowing the company to hit its P24-billion target in new contracts in 2018.
Megawide bagged P16.8 billion worth of new contracts in the first nine months of 2018, 55% higher than the new contracts it had for full year 2017.
“Our prospects in the EPC business remain very bullish as we continue to expand our order book levels and ensure revenue visibility for the next two to three years,” Mr. Saavedra said.
Revenues from Megawide’s construction segment went down by 17% in the nine months ending September, which the company attributed to the cyclical nature of the business. With this, Megawide’s attributable profit fell by four percent to P1.32 billion in the first nine months of 2018.
Shares in Megawide jumped 6.31% or P1.06 to close at P17.86 each at the stock exchange on Wednesday. — Arra B. Francia